BBG Ventures, co-founded by former AOL executives Susan Lyne and Nisha Dua, has raised a new $60 million fund to support a broader group of underrepresented founders beyond just women. Initially focused solely on female-led startups, the firm has expanded its mission to back diverse entrepreneurs across gender, race, age, and income.
This shift comes in response to a venture funding slump for founders from diverse backgrounds, with Black-founded U.S. startups receiving just 0.3% of VC funds in early 2024, according to Crunchbase. Lyne explained that BBG’s new focus addresses gaps in access to capital for various underrepresented founders, without diminishing its dedication to women entrepreneurs.
The fund’s expanded mission has won over a number of LPs, including returning backers like Nordstrom and Verizon, as well as new investors like Fairview Capital and the California Endowment. Dua emphasized that while BBG will selectively invest in AI, it remains committed to a balanced portfolio that includes healthcare, fintech, and startups like Nara, a natural formula brand.
Despite a challenging fundraising environment for smaller VC funds, BBG’s latest raise highlights the growing interest in impact-focused investing. Lyne added, “Our LPs believe in broadening access to capital,” validating BBG’s vision as the firm continues to champion diversity in entrepreneurship.