Inclusive Investment Firm Zeal Capital Partners Grows To $186M With Close Of $82M Fund
Zeal Capital Partners has closed its second fund at $82 million, tripling its assets under management (AUM) to $186 million in just five years.
The Washington, DC-based firm plans to invest the new capital in early-stage startups across fintech, healthcare, and the future of learning and work.
A Broader, Stronger Investor Base
Zeal’s investor base has grown significantly with this latest fund. Zeal’s limited partners now include Citi Impact Fund, M&T Bank, MassMutual, Wells Fargo, Zaffre Investments and Spelman College, according to a press release shared with POCIT.
In addition to these leading financial institutions, university endowments, pension funds, healthcare and insurance companies, investors also include general partners from some of the most respected venture capital firms, including Scott Sandell, Executive Chairman & Chief Investment Officer at NEA, and Jason Green, Founder & General Partner (Emeritus) of Emergence.
Notably, nearly 80% of Zeal’s Fund I investors returned for the second fund. That includes organizations like Capricorn Investments Group and Hampton University, signaling ongoing confidence in the firm’s investment strategy.
Investing With Impact
With Fund II, Zeal plans to back around 25 companies over the next four years. The firm will lead or co-lead seed-stage rounds, with typical check sizes ranging from $1 million to $2.3 million. About half the fund is reserved for follow-on investments to continue supporting successful portfolio companies.
The fund has already made initial investments in Seven Starling, a maternal mental health platform; Debbie, a fintech company focused on incentivizing financial wellness; and Rising Team, which builds tools for leadership and team development.
Read: Zeal Capital’s Stefanie Thomas-Martin Becomes Partner After Leading $50M Fund
Tackling Structural Challenges Through Innovation
Zeal Fund II centers on addressing systemic gaps in education, financial access, and healthcare, areas the firm sees as both critical challenges and high-growth opportunities.
“The systems-level challenges that have long felt insurmountable,” said Founder and Managing Partner Nasir Qadree, arguing that these sectors are now among the largest and most urgent market opportunities.
Zeal notes that financial services account for over $4.5 trillion of the US GDP, and healthcare spending in the U.S. exceeds $4.9 trillion annually. Meanwhile, demand for upskilling and workforce innovation continues to grow, especially as labor markets evolve.
As technology, particularly AI, continues to reshape these sectors, Qadree said Zeal’s strategy is designed to scale impactful solutions. “Our growth reflects the maturity of our investment platform and our firm’s enduring belief that Inclusive Investing™ defines market leadership,” he added.
Image: The Zeal Capital Partners team, from left to right, includes Richard Odior, Emily Zhen, Nasir Qadree, Stefanie Thomas-Martin, Susannah Burrage, Tom Muscarella and Bianca Phillip. Credit: Angelica & Jacob Tellez
