Kapor Capital in Oakland, California, has announced the launch of a $126 million fund for investing in tech startups and effecting social change in low-income communities and communities of color.

Established in 2011 by tech entrepreneurs Mitch Kapor and Freada Kapor Klein, the venture capital firm raised the capital for Fund III—its largest to date—from a broad range of for-profit and nonprofit partner-investors including the Ford, California Wellness, and Winthrop Rockefeller foundations and Align Impact, Bank of America, Blue Cross and Blue Shield of Louisiana, Cambridge Associates, EIP Elevate Future Fund, Footlocker, the National Geographic Society, PayPal, the Southern Poverty Law Center, Stardust Equity, and Twilio.

According to Kapor Capital, its investments are focused on closing gaps in access, opportunity, and outcome, while enabling its portfolio companies to make progress in diversity, equity, and inclusion. To date, 46 percent of Fund III investments have a founder who identifies as a woman, 53 percent have a founder who identifies as Black, and 100 percent have a founder who identifies as an underrepresented person of color. Thus far, the fund has invested in 15 companies, including Cayaba Care, a maternity support service; Daylight, a digital banking platform designed for and by members of the LGBTQ+ community; and TomoCredit, a credit card for young adults, students, and immigrants.

“Beyond capital, Kapor invests in infrastructure and a team that shows the commitment in supporting founders to build impactful businesses,” said Cayaba Care CEO and co-founder Olan Soremekun. “Our company has benefited tremendously from partnering with Kapor Capital—attending programming that is designed for founders, [and] leveraging their in-house expertise to help shape our people and growth strategy.”

“Investing in innovative people and ideas is what fuels economic and societal progress, but far too often access to that capital is unequal and unbalanced,” said Ford Foundation director of mission investments Roy Swan. “We are thrilled to partner with Kapor Capital to ensure that the bright minds looking to transform our industries have the resources they need to soar.”

(Photo credit: Getty Images/Hiraman)