Lightship Capital to invest $50 million in BIPOC businesses in the Midwest

A Cincinnati-based venture capital fund, Lightship Capital has pledged to invest $50 million in underrepresented BIPOC (Black, Indigenous, and people of color movement) businesses in the Midwest. This venture capital fund is run by a team of Black entrepreneurs and investors who plan to uplift Black businesses through a $50 million fund for financial support.

Part of Lightship’s commitment is to help minorities and the LGBTQ communities raise funds for their business. The fund has since teamed up with other businesses owners and leaders in Cincinnati to contribute their quota to the building of the city, creating a startup-friendly environment to attract new businesses.

“The idea is to start a venture fund really developed during my time as an entrepreneur. The unreasonable up-hill battle for investment dollars and mentorship, for me, and all other minority founders, is what led me to this space,” said Candice Matthews Brackeen of Lightship.”

On June 26, Lightship Capital announced that it was creating a $50 million fund to support startups led by BIPOC, the LGBTQ+ community, and people living with disabilities. The firm made history with its announcement, making it the largest-ever venture capital fund focused on investing in the Midwestern and minority-led startups.

“My focus on the Midwest, specifically, happened pretty organically. It’s where I grew up, went to school, and have started mu businesses—so effectuating change here, first, was very important to me. And to be clear; while our focus is on overlooked regions, we’re inclusive of all underrepresented founders—so we invest in amazing minority-led startups no matter where they call home,” Brackeen said.

For a start, the fund was able to secure $20 million from SecondMuse Capital the financial investment unit of SecondMuse, a financial and investment consulting firm. For over a decade, SecondMuse has remained committed to helping to build “a growing, resilient and inclusive” economy. The firm has invested a lot in businesses and real estate to help create a conducive environment for minority-led businesses and startups.

“The Lightship Capital Fund has the potential to be one of the greatest economic opportunities of this generation, as systemic racism has led to the majority of the VC investment being allocated to White male founders,” said SecondMuse founder and CEO Todd Khozein in a statement. “By investing in remarkable underrepresented founders in the Midwest, where the least VC competition exists and the best exit outcomes are yielded, Lightship Capital has identified the formula for a highly impactful, highly profitable venture fund.”

SecondMuse’s $20 million commitment will help Lightship Capital create “an equitable future for us all” in hope that this move shows the world that “these founders in the Midwest can’t be ignored.”

“The venture capital market has failed BIPOC and ultimately, itself,” said Brackeen. “There are incredible deals that are being overlooked and all VCs who aren’t intentionally diversifying their portfolio, who aren’t exploring deals in every community, are just not going to see outsized returns.”

Lightship Capital is the investment arm of Hillman Accelerator. Candice Matthews Brackeen who is the founder of Hillman Accelerator is also a general partner with Lightship Capital.