Founded in 2019, Collab Ventures has made a significant impact by focusing on investing in Black-led companies. In 2021, co-founder Burks Solomon spearheaded the closing of the firm’s initial $51 million fund, enabling investments in 38 early-stage enterprises, such as Hairbrella and Goodr, with an average check size of slightly less than $1 million.
In an ambitious move, the firm recently announced a new $75 million fund. Burks Solomon indicated that they plan to deploy an average investment of $1 million to $2 million across approximately 30 companies, with a portion of the fund allocated for follow-on investments in the top-performing firms in their portfolio.
However, the journey to securing their second fund has been fraught with challenges. It took roughly 18 months to raise the first fund, but the current fundraising period, stretching from August 2023 to early 2024, has proven more arduous. Burks Solomon described the fundraising climate as “totally different,” highlighting the external pressures faced by their organization.
Potential investors, who once seemed enthusiastic, reconsidered their commitments due to rising challenges to diversity, equity, and inclusion (DEI) initiatives. Under the administration of President Donald Trump, executive orders and various legal actions against DEI efforts have created an environment of uncertainty.
While the political landscape presents significant obstacles, other macroeconomic factors have also contributed to the challenging fundraising atmosphere. With increased interest rates and a tighter liquidity environment due to fewer tech companies going public, securing investment has become increasingly difficult. Data from venture firm Redpoint shows a dramatic decline in IPOs, from a peak of 126 tech companies in 2021 to just nine in 2024.
“It’s a tough fundraising environment for everyone,” Burks Solomon remarked, noting that many of her peers in the investment community are also grappling with difficulties, irrespective of their backgrounds or investment targets.
Despite these widespread challenges, Burks Solomon acknowledges that the climate surrounding diversity and inclusion initiatives has made their fundraising efforts even more complex.
Following the Supreme Court’s 2023 ruling against affirmative action in college admissions, a wave of lawsuits targeting corporate DEI strategies has emerged. The resulting scrutiny has forced many organizations to rethink how they communicate their commitment to these values. At Collab, similar conversations have occurred as they navigate this complex landscape.
Burks Solomon emphasized the need to adapt, stating, “It’s really important to us to be able to stay in business and continue to do the work.” As a response, Collab has adjusted its messaging away from exclusively focusing on investing in Black-led companies. Nevertheless, the firm remains dedicated to its core mission of channeling capital into historically underserved areas and fostering solutions that uplift all communities.
As economic disparities widen and power becomes increasingly consolidated, Burks Solomon asserts the importance of Collab’s work. “We are looking in places where other people are not and where resources are being pulled,” she said, highlighting the firm’s commitment to discovering exceptional entrepreneurs who are creating necessary solutions in the current landscape.
Collab Ventures stands firm in its mission, navigating challenges while remaining a beacon of hope for diversity in the investment space.
image source from：https://www.ajc.com/business/2025/06/atlanta-vc-firm-raises-75m-to-invest-in-historically-underfunded-founders/
