Former SoftBank executive Marcelo Claure and seasoned entrepreneur Paul Judge are actively raising a new $200 million fund, marking a significant stride in their mission to support underrepresented founders in the startup ecosystem.
Fund Transition and Success
After acquiring SoftBank’s $100 million diversity-focused fund, Claure and Judge are now steering the Open Opportunity Fund towards its next phase of growth. Despite a transitional period following the acquisition, the duo remains optimistic about the fund’s future, leveraging the success of its predecessor to attract investors for the new fund.
Past Achievements and Exits
The initial $100 million Opportunity Fund, backed by SoftBank, demonstrated considerable success with investments in 75 startups and seven notable exits. Notable acquisitions include Arcus by Mastercard and Drift by Vista Equity Partners. Although no portfolio companies have gone public yet, the fund’s performance remains promising.
Investor Interest and Commitments
Limited partners have shown keen interest in the Open Opportunity Fund, drawn by the fund’s track record and potential for meaningful returns. Claure’s commitment of $20 million from his personal funds further underscores confidence in the fund’s future success.
Future Focus Areas
With an emphasis on B2B SaaS startups, the fund plans to expand its investment horizon into fintech, healthtech, and edtech sectors for its next fund. Investments will primarily target late seed to early Series A startups, with a significant portion allocated to growth-stage investments.
Addressing Diversity Disparities
The Opportunity Fund emerged in response to the glaring disparities in venture funding, particularly for Black and Latinx founders. By prioritizing investments in underrepresented entrepreneurs, Claure and Judge aim to bridge this gap, enabling diverse founders to pursue their entrepreneurial dreams and create generational wealth.
Personal Motivations
For Claure and Judge, the fund’s mission holds personal significance, driven by their own experiences as entrepreneurs of color. By fostering a supportive ecosystem for diverse founders, they seek to create a ripple effect, empowering future generations to thrive in the startup landscape.
A Vision for Impact
Beyond financial returns, Claure and Judge envision a broader impact on society. Increased access to capital for underrepresented founders will not only fuel innovation but also foster diversity in company leadership and workforce, paving the way for more inclusive and equitable communities.
As Claure aptly summarizes, “The joy and satisfaction that I get by helping diverse founders, not one at a time, but 10, 20, 30, 40, 50 at a time… We’re going to be able to create an exponential effect.” With their steadfast commitment, Claure and Judge are poised to drive meaningful change in the venture capital landscape, one investment at a time.
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