February 14, 2024

From Jamaica To Silicon Valley And Beyond: Beta Boom Closes $14.5M Fund II For Underrepresented Founders

Kimmy and Sergio Paluch

Beta Boom, a US-based venture capital firm, has announced the closure of its $14.5 million Fund II. 

Founded in 2017 by Kimmy and Sergio Paluch, Beta Boom is committed to bridging the funding gap experienced by underrepresented founders, particularly in areas beyond the major tech hubs.

Beta Boom’s Fund II

Beta Boom’s Fund II, raised by the duo, alongside Ally Bank, Melinda French Gates’ Pivotal Ventures, and Bank of America, signifies a pivotal shift in the venture capital landscape. 

The fund aims to support early-stage startups that cater to the fastest-growing yet least-served populations, focusing on fintech, digital health, and the future of work. 

These sectors are ripe with unmet needs, presenting enormous opportunities for innovative solutions.

“The closing of this fund allows us to continue investing in software startups that not only solve real and meaningful problems but that also have strong market potential,” said Kimmy.

“We see the greatest needs and opportunities in fintech, digital health, and the future of work, and that’s where Beta Boom’s focus remains.”

This ethos is echoed by Erin Harkless Moore, Senior Director of Investments at Pivotal Ventures, who lauds Beta Boom’s growth mindset and personalized support for their founders.

The Founders’ Approach

Beta Boom stands out for its unique approach, which values grit and perseverance over traditional metrics like pedigree.

This philosophy is a product of the founders’ own diverse backgrounds and experiences.

Kimmy Paluch, who grew up in Jamaica, and Sergio Paluch, an immigrant who faced challenging conditions in Chelsea, Mass., bring a unique perspective to their investment strategy.

Their approach involves a hands-on methodology. They provide weekly support to jumpstart startup growth and build systems for long-term success. 

This strategy has already worked with investments in impactful companies like Bolder Money, Canopie, and Attane Health.

“Many of our founders tell us that Beta Boom is the first time they feel like they’ve been taken seriously – which is both encouraging and discerning at the same time,” said Sergio.

“We don’t care about a founder’s professional background or location; what we’re truly looking for is someone who has persevered in the face of adversity.”

Sara Keenan

Tech Reporter at POCIT. Following her master's degree in journalism, Sara cultivated a deep passion for writing and driving positive change for Black and Brown individuals across all areas of life. This passion expanded to include the experiences of Black and Brown people in tech thanks to her internship experience as an editorial assistant at a tech startup.