Diversity and inclusion funds are venture capital firms that explicitly prioritize backing underrepresented founders and gap-closing products. If you’re building a high-growth company and your team reflects communities long overlooked by traditional VC, these funds can be a direct path to capital, networks, and mentorship that “see” your lived experience as an edge—not a hurdle. In this guide, you’ll find nine standout firms, what they look for, typical check sizes and stages, plus concrete tips to help you make a compelling approach.
How to use this guide (quick start):
- Skim each fund’s stage, check size, and thesis to confirm fit.
- Note the “What they look for” bullets and adjust your deck accordingly.
- Use the Numbers & guardrails to sanity-check round sizing and traction signals before you reach out.
1. Backstage Capital
Backstage Capital invests in founders who identify as women, people of color, and/or LGBTQ+, with a long-standing focus on minimizing funding disparities. For underrepresented founders, Backstage can be the first institutional believer, bringing visibility and credibility that catalyzes co-investors. The firm commonly participates at pre-seed and seed, and is known for high-touch community support around storytelling, customer discovery, and early go-to-market. If you have early proof points—paying pilots, a waitlist with conversion, or unique distribution—Backstage is a practical first stop that understands traction can look different outside the Silicon Valley “standard” playbook.
Why it matters
- Signal amplification: Being a Backstage “headliner” often gets you introductions to angels and follow-on funds that actively source from their portfolio.
- Lived-experience thesis: They explicitly value founders whose proximity to a problem produces sharper insights and faster learning loops.
- Long-tail support: Alumni-to-alumni help with hiring, vendors, and tactical growth hacks.
What they look for
- Mission-driven markets where underrepresented consumers or operators are underserved.
- Early signs of repeatable demand (e.g., 30–50% MoM qualified pipeline growth, or ≥40% of users returning weekly for a lifecycle product).
- Clear articulation of why your team has the right to win.
Numbers & guardrails
- Typical initial checks: commonly around $100,000+, with flexibility based on round structure and co-investors.
- Round dynamics: If you’re raising a $750,000–$1,500,000 pre-seed, plan to combine a lead or two with several strategic supporters; Backstage often plays well in SAFE or convertible rounds.
- Mini case: A $1,000,000 pre-seed at a $8,000,000 post-money SAFE implies ~12.5% dilution; keep option pool expansion expectations clear to avoid surprises later.
Synthesis: If your story blends cultural insight with sharp early traction, Backstage can unlock momentum and community that compound far beyond the first check.
2. Kapor Capital
Kapor Capital’s thesis centers on “gap-closing” companies—startups that expand access and reduce inequities across education, fintech, health, climate, future of work, and more. The partners expect founders to link impact to core business drivers: when your product closes a specific gap (e.g., lowers remittance costs or increases credential completion), growth and margins improve. Kapor’s diligence is rigorous; they’ll test whether your impact is causal to your unit economics, not a side benefit. For founders with measurable outcomes and a narrative that ties impact to durable revenue, Kapor can be an anchor investor with deep policy and ecosystem connections.
Why it matters
- Playbook for impact at scale: Guidance on building “impact KPIs” alongside revenue KPIs so your board conversations never force an either/or.
- Operator network: Access to advisors in regulated sectors (edtech, fintech, healthcare) where compliance and distribution are complex.
- Post-seed follow-on: A track record of reserving capital for winners.
What they look for
- A specific gap you close (who, where, how measured).
- Evidence that closing the gap reduces CAC, improves retention, or expands TAM.
- Earned-secret insight from founder-market fit (career background, community ties).
Numbers & guardrails
- Check sizes: frequently $250,000–$3,000,000 at seed/early stage.
- Impact math example: If your product lowers a user’s monthly cost by $20 and boosts 6-month retention from 45% to 62%, lifetime value (LTV) may rise by 25–40% depending on gross margin—enough to reset your bid caps and accelerate paid growth responsibly.
Synthesis: If you can prove your impact is the growth engine, Kapor’s capital and credibility help you professionalize both mission and margin.
3. Harlem Capital
Harlem Capital invests in underrepresented founders with a goal of backing a large number over the long term. They typically invest at seed, aim for meaningful ownership, and bring robust research on diverse founder fundraising dynamics. For founders, Harlem often acts as a structured lead: expect thoughtful questions, quick follow-up on diligence requests, and hands-on help with intros to later-stage investors. If your company fits their stage and ownership targets, they can streamline your path from seed to Series A.
Why it matters
- Company-building support: Practical help on hiring the first GTM lead, setting up a lightweight data room, and building “Series-A-ready” metrics.
- Community flywheel: Portfolio cross-pollination for customer intros and warm references.
- Brand halo: Recognition that opens corporate BD doors.
What they look for
- Large markets with room for a culturally informed wedge.
- Repeatable early sales motion (even if founder-led).
- Clear path to 10–15% ownership for the firm when they lead.
Numbers & guardrails
- Initial checks: often sized around $2,500,000 at seed to achieve 10–15% ownership.
- Mini case: Seed round $4,000,000 at $16,000,000 pre (post $20,000,000). Harlem’s $2,500,000 gets ~12.5% ownership; if you need a larger round, expect co-leads or structured follow-on reserves to maintain target ownership.
Synthesis: If you want a decisive seed lead with a research-backed view on diverse founders’ paths to Series A, Harlem’s structure and network can compress time to your next milestone.
4. Chingona Ventures
Chingona Ventures focuses on founders whose unique backgrounds position them to build in overlooked markets—fintech, future of work, learning, and health among them. They primarily invest pre-seed, often when you’re raising your first institutional round. For immigrant, first-gen, or non-traditional founders, Chingona’s lens values resilience and resourcefulness, not pedigree. They’re comfortable with messy early signals if you can show strong user love or a differentiated distribution edge.
Why it matters
- Pre-seed friendly: Comfortable leading or co-leading when you have signal but not years of data.
- Applied empathy: Partner time spent refining the wedge and ICP so early spend is efficient.
- Bridge-to-seed coaching: Practical guidance on sequencing hires and milestones.
What they look for
- <12-month roadmap to a clear seed story (revenue, contracts, or defensibility).
- Founder proximity to the user and a scrappy experiment cadence.
- A plan for capital efficiency—what becomes repeatable by months 6–9.
Numbers & guardrails
- Initial checks: roughly $250,000–$2,000,000.
- Mini case: With a $1,250,000 pre-seed at a $7,000,000 post-money SAFE, a $750,000 check covers ~60% of the round; ensure 12–18 months runway at a $80,000–$120,000 monthly burn by pacing hires to milestones.
Synthesis: If you’re early but sharp on user pain and capital plan, Chingona helps turn grit and insight into a fundable pre-seed narrative.
5. BBG Ventures
BBG Ventures backs “underestimated” founders building for a polycultural future, typically at pre-seed and seed. They’re thesis-driven across consumer, future of work, health, climate, and more, and frequently lead or co-lead. Founders value BBG’s practical guidance on brand, distribution, and product-market fit, especially where communities outside the usual tech hubs are your core users.
Why it matters
- Brand & GTM chops: Hands-on with positioning, messaging, and early growth loops.
- Lead/co-lead muscle: They can set terms and assemble high-signal syndicates.
- Portfolio effect: Warm intros to retailers, platforms, and design talent.
What they look for
- Evidence your users are “missionary,” not mercenary: strong cohorts, organic loops.
- A wedge into a large category (e.g., a cultural or behavioral shift you can ride).
- Path to margins that support paid growth if needed.
Numbers & guardrails
- Average initial check: approximately $500,000–$1,500,000.
- Round design tip: If you target $2,500,000 seed with a BBG lead at $1,000,000, line up 2–4 co-investors with complementary networks (retail, healthcare, enterprise). Maintain 18–24 months runway to test 2–3 growth vectors.
Synthesis: If your product sits at the intersection of culture and category scale, BBG can be the brand-savvy lead that sets up downstream momentum.
6. Female Founders Fund
Female Founders Fund invests exclusively in companies with at least one woman founder, primarily at seed. Their process is known for being transparent and efficient, with clear expectations and a collaborative approach to diligence. If your team is woman-led and you can demonstrate early traction or a compelling product insight, FFF is one of the highest-signal partners at seed, especially for B2B, consumer, health, and fintech.
Why it matters
- Focused community: Access to a deep bench of female operators, executives, and mentors.
- Velocity: Streamlined process that respects your time and reduces fundraising drag.
- Follow-on savvy: Pattern recognition on what next-round investors need to see.
What they look for
- Clear buyer persona and conversion path to first $1–2 million ARR (for B2B) or strong cohort retention (for consumer).
- Evidence of founder-market fit and a crisp advantage (data, distribution, UX).
- A credible plan to reach institutional Series A metrics.
Numbers & guardrails
- Typical initial checks: around $500,000–$750,000.
- Mini case: For a B2B company with $300,000 ARR growing 15% MoM, a $750,000 check at seed can finance 12 months to hit $1–2 million ARR if CAC payback ≤ 12 months and gross margin ≥ 70%.
Synthesis: If you’re a woman-led team with early momentum, FFF combines capital with a powerful operator network to accelerate your path to a strong Series A story.
7. Impact America Fund
Impact America Fund invests to build a future where people of color experience agency and participation in the economy. They seek visionary founders tackling systemic barriers in work, wealth, health, and community—often in regulated or complex categories. The firm blends impact rigor with commercial discipline and frequently supports companies that rewire access (e.g., financial inclusion, equitable labor platforms, health access).
Why it matters
- Thesis alignment: Deep expertise in models that monetize inclusion (not charity).
- Policy & ecosystem reach: Intros that matter when you sell into civic or regulated buyers.
- Scaling with integrity: Evidence-based guidance so impact doesn’t degrade as you grow.
What they look for
- A clear change in who benefits and how value accrues when your product is adopted.
- Proof that your distribution reaches communities often overlooked by legacy channels.
- Unit economics that improve as you scale underserved segments (not worsen).
Numbers & guardrails
- Stages: typically seed and Series A; check size varies by round and conviction.
- Mini case (guardrail framing): If your product increases take-home pay by 5–10% for hourly workers via scheduling stability, track this alongside retention. Demonstrate cohorts where churn decreases as schedule variability drops—this ties impact to sticky revenue.
Synthesis: If your company treats inclusion as a competitive advantage with measurable outcomes, Impact America Fund helps you scale both mission and margin without compromise.
8. Collab Capital
Collab Capital invests financial, human, and social capital to grow businesses and build lasting economic equity—often partnering with Black founders and companies reimagining work, care, and services. The team blends founder empathy with disciplined portfolio construction, and they’re explicit about how much capital is enough to hit your next proof points. Expect hands-on help with GTM sequencing, financial models, and setting up for a clean Series A.
Why it matters
- Right-sized funding: They’re thoughtful about not over-capitalizing pre-product/market fit.
- Operator DNA: Practical tools for hiring, GTM sprints, and vendor discounts.
- Follow-on pathways: Co-investor network across mission-aligned and traditional funds.
What they look for
- A clear milestone map for the next 12–18 months (product, revenue, hiring).
- Evidence that access, affordability, or cultural relevance is your defensible wedge.
- Founder-market fit with domain insight and grit.
Numbers & guardrails
- Checks: commonly $500,000–$2,000,000 across initial and follow-on.
- Mini case: For a services-plus-software model targeting $3,000,000 ARR within 24 months, Collab may underwrite a plan where $1,500,000 fuels customer acquisition and a lean product team; model to ≤15% month-over-month burn growth once payback stabilizes under 10 months.
Synthesis: If you want a partner who calibrates capital to milestones and shows up beyond the money, Collab’s approach keeps you focused on compounding value, not vanity metrics.
9. Slauson & Co.
Slauson & Co. is an early-stage firm rooted in economic inclusion, investing primarily at pre-seed and seed in SMB tech, culturally relevant consumer, and practical enterprise solutions. The partners champion “more than the money,” emphasizing hands-on help and community. For founders building in overlooked markets or designing software that powers real-world businesses, Slauson brings both cultural fluency and disciplined company-building.
Why it matters
- Inclusive lens: A thesis that sees value in markets traditional VC misses.
- Hands-on partnership: Tactical support on GTM and early hiring.
- Momentum: Recent fund growth reflects sustained LP confidence in inclusive investing.
What they look for
- A crisp articulation of how your product expands economic participation.
- Customer-centric validation (SMB pilots, reseller interest, or channel partners).
- Lean experimentation culture with clear “kill or scale” thresholds.
Numbers & guardrails
- Stage & scope: Focus on pre-seed/seed; fund size now into nine figures, enabling meaningful reserves.
- Mini case: Pre-seed $1,800,000 with a planned $500,000 Slauson anchor plus co-investors. With SMB ACV $4,000–$8,000, target 12–18 lighthouse customers in the first year; keep blended CAC payback under 12 months before scaling outbound.
Synthesis: If your product unlocks ownership and opportunity for overlooked operators, Slauson’s capital and community can help you translate cultural signal into durable revenue.
Conclusion
The fastest way to earn a “yes” from diversity and inclusion funds is to treat inclusion as a business model advantage—not a mission statement bolted on at the end. Each of the nine firms above looks for the same underlying truth: your proximity to a problem unlocks a wedge that compounds—lower CAC, higher retention, faster sales cycles, or a product moat built on trust and access. Before you reach out, get explicit about the gap you close, show the linkage between impact and unit economics, and size your round to the next objective proof points, not a vanity total. If you do that, you’ll find investors who underwrite both your outcomes and your upside. Ready to pitch? Choose two funds that truly fit, tailor your story, and start those conversations this week.
FAQs
1) What exactly are “diversity and inclusion funds,” and how are they different from impact funds?
Diversity and inclusion funds explicitly prioritize underrepresented founders (e.g., women, people of color, LGBTQ+) and products that expand access or equity. Many are traditional VCs that expect competitive returns and run standard venture playbooks. Impact funds are broader: some emphasize environmental outcomes, others social outcomes; some accept concessionary returns, while many don’t. The overlap is significant, but a DEI fund will usually center founder identity and access outcomes as core to its thesis.
2) Do I need a certain percentage of diverse ownership to qualify?
Most funds don’t use a single percentage threshold; they evaluate the founding team’s composition, decision-making control, and how lived experience informs your product. If at least one co-founder holds meaningful equity and executive authority—and your product demonstrably closes a gap—you’re typically eligible. Be transparent about cap table, titles, and decision rights so investors can assess leadership, not just labels.
3) How much traction should I show before approaching these funds?
At pre-seed, traction can be waitlists, pilots, or high-intent cohorts with strong engagement. At seed, investors often look for early revenue consistency, improving retention, and a credible path to efficient customer acquisition. Quantify learning velocity: weekly experiment cadence, cohort improvements, or signed LOIs with milestone triggers. The throughline is evidence that your insight converts to behavior change and revenue.
4) Will focusing on underrepresented users limit my total addressable market (TAM)?
Not necessarily. Many successful companies start with a culturally informed wedge then expand horizontally once product-market fit is secured. Investors care whether your initial segment is big enough to build a meaningful business and whether your wedge unlocks a durable moat. Show the path from wedge to broader market with adjacent personas, channel expansion, or product extensions.
5) How should I size my pre-seed or seed round for these funds?
Work backward from milestones: product maturity, revenue or adoption targets, and critical hires. For pre-seed, many teams raise to 12–18 months of runway with deliberate hiring; for seed, to 18–24 months while proving repeatable GTM. Tie your ask to a milestone map, then pressure-test CAC payback, gross margin, and burn multiple. Show exactly how the dollars de-risk the next round.
6) Do these funds act as leads or mainly as participants?
Several—Harlem Capital, BBG Ventures, and at times Chingona Ventures—commonly lead or co-lead. Others may participate or lead selectively depending on round fit and portfolio construction. Your job is to identify who is structurally set up to price and lead your stage, then approach with a crisp data room and a clear path to ownership that matches their target.
7) What materials should I include when I pitch?
A tight narrative deck (problem, wedge, insight, solution), a clear metrics snapshot (cohorts, retention, contribution margin), customer proof (quotes or pipeline stage counts), and a short product demo. Include a one-page “impact memo” that quantifies how closing the gap improves unit economics. Keep your data room lean: corporate docs, financial model, pipeline, customer references, and experiment log.
8) How do I avoid being “diversity-washed” in diligence?
Anchor your story in the business: show how inclusion drives acquisition, retention, pricing power, or network effects. Set measurable impact KPIs tracked alongside revenue KPIs. If a question veers into tokenism, steer back to how your proximity uncovers unmet demand and why that creates defensibility. The best DEI investors will meet you there.
9) What if my company isn’t US-based?
Some listed funds invest globally or in specific regions, while others focus on the US. If you’re outside the US, emphasize local market dynamics, regulatory context, and distribution channels. Provide currency and unit conversions and highlight any cross-border expansion plans. Be explicit about how your model translates across regions without assuming one market’s playbook fits another.
10) Are grants or revenue-based financing better than equity for early inclusive startups?
They can be, depending on the model. Grants are great for R&D or regulated categories; revenue-based financing can bridge working capital without dilution, especially for steady-state revenue. Equity makes sense when you’re chasing nonlinear growth or network effects. Many founders use a stack: grants for validation, revenue-based for inventory, and equity for product and team.
References
- “Frequently Asked Questions,” Backstage Capital, n.d., https://backstagecapital.com/frequently-asked-questions/
- “How We Invest,” Kapor Capital, n.d., https://www.kaporcapital.com/how-we-invest/
- Founder Overview (Public), Harlem Capital (PDF), March, https://harlem.capital/wp-content/uploads/2022/01/Harlem-Capital-Founder-Overview-Public_March-2023.pdf
- “Investment Thesis / Check Size,” Chingona Ventures, n.d., https://www.chingona.ventures/
- “Where We Invest,” BBG Ventures, n.d., https://www.bbgventures.com/where-we-invest
- “Resources (FAQ),” Female Founders Fund, n.d., https://femalefoundersfund.com/resources/
- “Impact America Fund,” Impact America Fund (mission page), n.d., https://impactamericafund.com/
- “Who We Fund,” Collab Capital (FAQ), n.d., https://www.collab.capital/who-we-fund
- Miller Kern, “Slauson & Co. raises $100M Fund II proving appetite for inclusion persists,” TechCrunch, September 4, https://techcrunch.com/2024/09/04/slauson-co-raises-100m-fund-ii-proving-appetite-for-inclusion-persists/
- Jager McConnell, “It’s Time for Action: Introducing Diversity Spotlight,” Crunchbase, updated September 19, https://about.crunchbase.com/blog/new-crunchbase-diversity-spotlight/
- “The Diversity VC Standard,” Diversity VC, n.d., https://diversity.vc/diversity-vc-standard/
