- New York-based BBG Ventures has raised a brand new $60 million fund.
- The newest fund will put money into each feminine founders and people with numerous backgrounds.
Only a handful of VCs sought out ladies entrepreneurs when AOL media execs Susan Lyne and Nisha Dua launched BBG Ventures in 2014 to solely again feminine founders. Ten years later, the seed stage fund has raised a brand new $60 million fund and is transferring past simply backing feminine founders to any entrepreneur from a various background.
“This is just not about abandoning ladies, however increasing our mandate to again a various founding staff,” Lyne advised Business Insider.
Founders from numerous backgrounds have taken a success amid the funding droop in enterprise capital. In the primary half of 2024, Black-founded US startups obtained $228 million in funding — or about .3% of the almost $79 billion that went to U.S.-based startups, in keeping with Crunchbase knowledge. The greenback complete is a 60% drop from the primary half of 2023.
Lyne and Dua teamed up at AOL in 2014 to create a $10 million fund, BBG, to again feminine founders and invested early in Spring Health, which was principally just lately valued at $3.3 billion, and toy model KiwiCo.
When Verizon purchased AOL in 2015, BBG Ventures separated and raised a brand new $50 million fund. For the primary time, it raised capital from institutional buyers, together with the State of Michigan Retirement Services and Illumen Capital. Investments embrace genAI startup Topline Pro and skincare firm Starface.
Dua stated that these LPs returned to again their latest fund and likewise elevated their commitments. New buyers within the enjoyable embrace Fairview Capital, Pivotal Ventures, California Endowment, and Mizuho. Previous buyers Nordstrom, Verizon, and Bank of America additionally invested within the $60 million fund.
Dua defined that the choice to maneuver past solely backing simply feminine founders displays the duo’s shift in thesis round innovation. “There are underrepresented teams round not simply gender but in addition race, age, and earnings,” stated Dua.
She emphasised that feminine founders are nonetheless an enormous focus space however that the agency is happy to again sturdy, underrepresented founders in healthcare, fintech, and the funding space almost all VCs clamoring to again: AI. The new fund has already backed an AI recruiting startup for hourly employees, UpWage.
BBG is not turning into an AI-focused agency anytime quickly although, Dua cautioned. “Some funds are constructing a portfolio of simply AI firms,” she stated. “That’s not us.” She highlighted a current funding out of the brand new fund in Nara, a startup that has created an FDA-approved, licensed natural entire milk method. “It’s vital for us to be circumspect the place AI can drive development in sure startups,” added Dua.
For Dua and Lyne, being an rising fund supervisor and elevating a brand new fund is “not straightforward.” “The overwhelming majority of VC funding this yr goes to a really small pool of funds, and sub-$100 million funds have a more durable time elevating,” stated Lyne. She added due to the competitors to boost funds from LPs, many funds are taking longer to make choices and ready to see what returns a fund makes earlier than investing once more.
“Many of our LPs consider in influence and making an attempt to broaden entry to capital,” stated Lyne. “We raised greater than our final fund, and I feel it is validation of our thesis.”
