Harlem Capital has raised $150 million in funding, according to documents filed with the SEC.
If the new fund, the firm's third, goes through, it will be its largest to date: Harlem Capital oversubscribed and raised $134 million in 2021. That's a big increase over the $40 million the firm raised in its first fund in 2019.
The firm was founded in 2015 with the goal of backing diverse founders. The second fund focuses on early-stage post-product companies across all sectors, with a particular focus on consumer and enterprise technology. According to Pitchbook, the firm currently has $174 million in assets under management and has made over 80 investments since inception, with 12 having closed. Investments include Propense.ai, fintech Poolit, and e-commerce platform Gander.
Harlem Capital did not immediately respond to a request for comment.
Harlem Capital is also focusing on raising capital from diverse limited partners for its second fund, and it's safe to assume that will continue as long as the firm stays true to its mission of backing the next generation of diverse founders.
It's also worth noting that Harlem Capital's oversubscribed second fund was launched in the wake of the Black Lives Matter movement, when the industry committed to supporting historically marginalized groups and funneled money into those communities. Harlem Capital's third fund is looking to raise capital in a very different environment, where a backlash against diversity and inclusion has taken root in industries across the US.
The successful raising of this $150 million fund marks not only a success for Harlem Capital and its founders, but also a testament to the industry’s willingness to still believe in and support talented yet underrepresented communities.