August 2024
Dear ,We're thrilled to introduce you to Visible Hands-On Updates!We launched Visible Hands Fund I three years ago with a bold mission: to create a world where talent and execution—not race or gender—are the primary drivers of entrepreneurial success. Since embarking on this mission, we have deployed $8.3 million to over 100 pre-seed companies with visionary founders.In this newsletter, we will update you on our journey to shape the future of inclusive venture capital. In this update, we're excited to share our evolution to Visible Hands 2.0, refined investment thesis, and impact thus far. As always, please feel free to schedule time with us or reply directly to this email with questions.Be well,The Visible Hands Team
Allow us to Re-Introduce Ourselves:VH 2.0
A scalable and sustainable pre-seed modelAfter attracting over 10,000 applicants and producing three cohorts of companies for Fund I, we have validated the market opportunity to fund and support diverse founders at the pre-seed stage and we have recognized that our platform strength lies in delivering community-driven, hands-on, stage-critical support. We have also learned more scalable ways to operate while pursuing our investment strategy. In Fund II, we will no longer run an accelerator model. Instead, we are making direct pre-seed investments and focusing our platform efforts on programming, partnerships, founder-to-founder connections, and analytics to scale founder success.
Optimal portfolio construction for maximum value-addWe want to ensure that our founders have enough capital to go from 0 to 1. We have learned that $150K checks only go so far to help them get there. As a result, we will be targeting $500K investments for 5-10% ownership stakes for Fund II, with one-third of investable capital reserved for follow-ons. We are making approximately 40 high-conviction investments (versus 57 in Fund I), allowing us to deepen our hands-on support while ensuring enough diversification in the power law world of venture returns.
An intentional multisector investment thesisVisible Hands invests in diverse founding teams at the earliest stages of company-building when capital is needed the most and when VH can gain favorable economics. Building on this, we believe that diverse founders bring distinct expertise and lived experiences to building the “Empowered Economy,” a future where technology resolves the financial, health, and environmental worries of everyday Americans. We look forward to sharing more with you in the coming months. Stay tuned.
SOURCING SPOTLIGHT:VHBOS FELLOWSHIP
We reviewed over 120 Boston-based pre-seed companies building in healthcare, enterprise software, consumer products, edtech, and more. We selected 10 companies to receive $10K business grants from the Barr Foundation and nine weeks of cohort-based programming and executive coaching focused on traction and founder wellness. The revamped VHBOS program represents Visible Hands’ sourcing strategy in action where we leverage regional strategic partnerships to attract founders early into our orbit.
VISIBLE HANDS IN THE NEWS
Blueprint Capital Advisors recognized Visible Hands on their Diversity, Equity & Inclusive Capitalism Power 100 List, highlighting leaders who are changing the face of capital and entrepreneurship.
NYCEDC announced the selection of 60 diverse startups to participate in their third cohort of the Founder Fellowship, with Visible Hands featured as one of four partners.
Business Insider featured General Partner Daniel Acheampong on their list of 58 Black investors changing the VC industry with firms that fund diverse startup founders.
LPs IN OUR CORNER
We are deeply grateful to our existing Limited Partners who have already committed to Visible Hands Fund II. We'd like to extend special recognition to THL and Brown Advisory for their continued support and active engagement. We look forward to continuing our partnership with you to invest in the next generation of billion-dollar businesses. Again, feel free to schedule time with us or reply directly to this email with questions.
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