The Equity Alliance, a New York City-based investment fund, has announced the close of Fund I, an oversubscribed $28 million fund focused on diverse, emerging venture capital firms and early-stage ventures. 

Designed to help democratize venture capital across America and build wealth among diverse fund managers and founders, the Equity Alliance was established by Dick Parsons and Kenneth Lerer in the wake of the murder of George Floyd in May 2020 to help create a differentiated approach to building wealth for underrepresented investors and underserved communities. In addition to Parsons and Lerer, early investors include Ronald S. Lauder, Eric Zinterhofer, Scott Kapnick, Michael Novogratz, and VC firm Lerer Hippeau, as well as a group of limited partners including Schusterman Family Investments, Bank of America, the Ford Foundation, LionTree, Women Moving Millions co-founder Jacki Zehner, and Celo co-founder Rene Reinsberg.

The Equity Alliance made its first direct investment in fintech startup Esusu and made a total of 12 investments in 2021. The firm is working to provide access to capital, networks, and mentorship to founders and investors who have been traditionally overlooked. To that end, the fund seeks competitive market returns by investing in outstanding emerging managers that go through a rigorous diligence and selection process.

“Access to capital is key to participation in economic growth and wealth creation,” said Parsons, chair of the Equity Alliance. “Our purpose here is to create a model that others can follow which ensures that people of color and women have a fair shot at gaining that access and, with it, the opportunity to help build America. We are focused on an important part of the financial ecosystem that we think is an enabler and starting point for a broader and more equitable system.”

(Photo Credit: Getty Images/Dekdoyjaidee)