Illumen Capital Announces New $32.75M Fund For Diverse-Led Funds And Comapanies
Illumen Capital, a leader in impact investing, has launched the $32.75 million Catalyst Fund to support first-time fund managers and entrepreneurs, particularly those from underrepresented backgrounds.
For the first time, the impact fund of funds has integrated direct investments into its broader strategy, investing directly in diverse-led early-stage companies as well as fund managers.
The Catalyst Fund
The Catalyst Fund arrives at a critical moment, with Black founders receiving less than 1% of venture capital funding last year, according to Crunchbase.
This decline shows persistent biases in the venture ecosystem, which Illumen Capital Founder Daryn Dodson attributes to current economic and political uncertainty.
“During times of economic uncertainty, biases increase, directing billions of capital to the same networks,” Dodson told TechCrunch.
The Catalyst Fund will prioritize investing at least 65% of its capital into first-time venture managers and allocate up to 35% for direct co-investments.
It aims to deploy the funds within the next 18 months, focusing on areas such as education, health, financial inclusion, climate, and sustainability.
Building on a Proven Strategy
This new initiative complements Illumen Capital’s previous efforts. The firm manages $285 million in assets, including its $168 million Fund II launched in 2023.
While Fund II concentrated on established managers, the Catalyst Fund targets newer entrants to the market.
Dodson credits Illumen’s success to deep relationships with limited partners like the Ford Foundation and Health Forward Foundation, who have also invested in the Catalyst Fund.
“Our thesis and strategy remain strong,” Dodson said in a press release. “The continued investment from our partners highlights the immense value that often goes unrecognized in underestimated managers and entrepreneurs.”
Feature Image Credit: Daryn Dodson
