▼ Summary
– Zeal Capital Partners raised $82 million for its second fund, with limited partners including Citi Impact Fund, M&T Bank, Wells Fargo, and Spelman College.
– The fund aims to invest in at least 25 early-stage companies, focusing on fintech, healthcare, and future of work, with 50% reserved for follow-on investments.
– Zeal has already invested in five companies, including Seven Starling and Debbie, despite a challenging funding environment due to macroeconomic uncertainty.
– Over 80% of limited partners from Zeal Fund I continued into Fund II, reflecting strong confidence in the firm’s strategy.
– Black-led funds like Zeal, Slauson & Co., and Cherryrock Capital have recently raised significant capital, showing continued investor appetite despite political pressures.
Zeal Capital Partners has successfully closed its second investment fund, securing $82 million from prominent backers including Citi Impact Fund, M&T Bank, Wells Fargo, and Spelman College. The firm plans to deploy capital into 25 or more early-stage businesses, with initial investments ranging from $1 million to $2.3 million per company. Half the fund has been earmarked for follow-on financing to support portfolio growth.
Nasir Qadree, Zeal’s founder and managing partner, emphasized the fund’s continued focus on financial technology, healthcare innovation, and the future of work—sectors that align with its first fund’s strategy. Early investments from Fund II include Seven Starling, a maternal health platform, and Debbie, a fintech startup.
Despite what Qadree called a “challenging” fundraising climate marked by economic volatility and shifting LP priorities, over 80% of Fund I investors recommitted, signaling strong confidence in Zeal’s approach. “These conditions forced us to refine our strategy, proving its resilience,” he noted.
Zeal’s latest close adds momentum to a growing trend of Black-led investment funds securing significant capital. Recent examples include Slauson & Co.’s $100 million Fund II, Illumen Capital’s $32.75 million raise, and Cherryrock Capital’s $172 million debut fund. While some firms target underrepresented founders explicitly, others adopt broader mandates—demonstrating sustained investor interest despite political headwinds around diversity initiatives.
Since its 2019 launch, Zeal has backed 40 companies. Its inaugural fund closed at $62.1 million in 2021, laying the groundwork for this latest milestone. The firm’s expansion reflects both its track record and the broader appetite for specialized venture strategies in uncertain markets.
(Source: TechCrunch)
