Cherryrock Capital Launches $172M Fund to Empower Diverse Founders
Cherryrock Capital, founded by Stacy Brown-Philpot, raises $172 million to fund diverse founders at Series A and B stages.
The logo features the words "ULU VENTURES" in brown beneath a red symbol composed of a central shape with surrounding leaf-like elements, reflecting the firm's focus on diversity and funding underrepresented founders.
Cherryrock Capital, a venture firm started by former TaskRabbit CEO Stacy Brown-Philpot, has successfully closed its first fund, raising $172 million with support from illustrious investors including Melinda French Gates, JPMorgan, and Reid Hoffman. Announced on Wednesday, the funding drive signifies a major step forward for the firm, which aims to support diverse founders at Series A and B funding rounds.
The recent fund close was officially completed in January, despite launching two years ago amidst a challenging atmosphere for fundraising. Brown-Philpot elaborated that the focus of Cherryrock Capital is to address a gap in the market where few venture capital firms are leading later-stage investments in companies led by diverse teams, thus fostering a more inclusive entrepreneurial ecosystem.
Cherryrock's mission aligns with ongoing discussions and initiatives surrounding diversity and inclusion in business, despite some political and legal scrutiny these programs are facing globally. The significance of this fund becomes even more apparent as Cherryrock commits to making impactful investments in underrepresented communities.
Already, the firm has announced investments in two companies: a leading Series B round for Coactive AI, a tech startup, alongside Emerson Collective and co-investors Andreessen Horowitz and Bessemer Venture Partners. Additionally, Cherryrock has taken part in the Series A funding for Vitable, a healthcare innovator funded alongside Citi Impact Fund and First Round Capital.
Stacy Brown-Philpot’s extensive background includes pivotal roles at major corporations like Alphabet and Google, and she continues to contribute her expertise on the boards of StockX and HP. Her leadership at Cherryrock aims to replicate the success of Softbank's Opportunity Fund, which also champions diverse founders.
Significance of Cherryrock's Initiative
The inception of Cherryrock Capital not only reflects a growing commitment to backing diverse founders but also highlights the evolving landscape of venture capital focused on sustainable business growth and inclusivity. As debates about diversity continue, Cherryrock Capital positions itself as a forward-thinking leader in an industry ripe for transformation.
