INDIANAPOLIS, May 10, 2021 /PRNewswire/ -- Sixty8 Capital, an Indianapolis-based, seed-stage venture capital (VC) firm supporting Black, Latinx, women and LGBTQ+ led startups, announces today the first close of its new $20 million venture fund. Investors include The Indiana Next Level Fund, 50 South Capital, Bank of America, Eli Lilly and Company, First Internet Bank and the Central Indiana Community Foundation. Led by Managing Director Kelli Jones, Sixty8 Capital is industry-agnostic and will focus initially on seed investments between the coasts, with an emphasis on the Midwest. Sixty8 Capital is powered by Allos Ventures, one of Indiana's most active VC firms, with Allos' Paul Ehlinger serving as venture partner.
Sixty8 Capital will seek to invest in 25 to 30 pre-seed and seed-stage companies with initial equity checks of $250,000 to $500,000 per company, reserving additional funds for follow-on rounds. Investment will focus on undercapitalized founders and innovators who too often miss out on critical funding, since 90% of venture capital goes to people who look like and live near investors. The firm's investment thesis focuses on uncovering potential among diverse founders whose access to capital is limited by race, gender, sexual orientation or proximity.
"We believe there is an opportunity to truly level the playing field when it comes to capital access for diverse founders in any industry, said Kelli Jones, Sixty8 Capital's managing director and the first-ever Black, female VC in the state of Indiana. "There is a $4 trillion missed opportunity when we don't put a focus on diverse founders. Venture capital has a significant opportunity to change the trajectory of SMBs and microenterprises by helping them build products and services that utilize tech and have the opportunity to scale."
Opportunities for such investments are readily apparent. Black founders are at the helm of just 1% of venture capital-funded startups, and startups with all-female founding teams saw a declining share of all VC dollars invested last year with just 2.4%. Sixty8 Capital has already identified one of its first investments: Qualifi, an Indianapolis-based SaaS platform that helps recruiters improve their hiring efficiency and effectiveness.
"Sixty8 Capital's support goes beyond the investment. The team will play an active role in advancing management teams, optimizing marketing and sales, and assisting with acquisitions, as well as strategizing for a potential exit," said Darrian Mikell, Qualifi's chief executive officer and co-founder. "We're similarly aligned in terms of the impact we want to have on the world. Being able to collaborate with them on strategy and leverage their decades of experience is invaluable. Kelli, specifically, has been a champion for Qualifi since the very beginning. She always made us feel confident that we would succeed. Having Sixty8 Capital as an investor is a signal to the broader VC community that Qualifi is a startup worth watching."
Indianapolis-based pharmaceutical company Eli Lilly and Company sees its investment in Sixty8 Capital as an ideal fit for Lilly's Racial Justice Initiative, which focuses on several areas of impact including healthcare access, supplier diversity and jobs within the communities in which Lilly operates.
"We are excited to support Sixty8 Capital on its mission to uplift underrepresented founders and innovators," said Philip Johnson, senior vice president and treasurer, Eli Lilly and Company. "Diverse and historically underrepresented founders struggle to obtain capital to form and build their businesses. Lilly's investment in Sixty8 Capital is representative of our broader efforts to use our financial and human capital to create lasting change that makes life better for people in the communities we serve."
According to Jones, Sixty8 Capital's managing director, founder outreach is an essential part of the fund's strategy.
"We have to help lift the veil on how these founders can connect with VCs," she said. "Even if we don't invest now, we can still listen. We can give them feedback on their pitch. Some of them have been bootstrapping for two or three years, trying to start a company while working full-time jobs. Some of them are even turning a profit. Maybe they're not quite ready to fundraise, but we can help them get there. Or maybe now is the right time for Sixty8 Capital to invest, and that founder will have the chance to show everyone how far they can take their idea, regardless of whether it's in SaaS, media, CPG, or ecommerce. We want to find the diverse founders that traditional VCs are overlooking."
Sixty8 Capital's name stems from the generational, class and political events of 1968, a watershed year in the civil rights movement. Digital product agency Innovatemap convened a team of diverse thoughts and minds, including Tyler Hill, Head of Design at Pattern89, to create Sixty8 Capital's brand identity.
Sixty8 Capital is actively seeking interest from Black, Latinx, women and LGBTQ+ founders, with an emphasis on startups in the Midwest. Learn more at sixty8.capital.
About Sixty8 Capital: Sixty8 Capital is the first venture capital firm in Indiana dedicated to investing in Black, Latinx, women and LGBTQ+ led startups. Industry-agnostic by design, Sixty8 Capital invests in tech, tech-enabled and direct-to-consumer companies whose founders' access to capital is limited because of race, gender, sexual orientation or investor proximity. Based in Indianapolis, Sixty8 Capital focuses its efforts between the coasts and is proud to be supported by Allos Ventures.
About Allos Ventures: Allos Ventures invests in early-stage technology companies based in the Midwest. Investments focus on B2B software companies at a Seed or Series A stage, augmenting the capital provided by seed and startup investors. In addition to the capital Allos provides, portfolio companies benefit from the extensive operating and business-building experience of the firm's managing partners, who make themselves available as needed to support each portfolio company's growth.