Venture firm Westbound has raised $100 million to invest in Black, Latino, and diversity-minded founders. Formerly known as Concrete Rose Capital, the company expanded its fund size due to a portfolio including fintech unicorn Esusu and AI startup Sierra.

Westbound founders Sean Mendy, Will Bumpus, Danae Sterental, and Ian Beadle aim to create a ‘virtuous cycle‘ of investment that diversifies the tech industry. Since its establishment in 2019, the firm has supported over 40 startups primarily run by underrepresented founders and companies that prioritize an equitable workforce culture.

“If we can make the next Yahoo, LinkedIn, Facebook, or Google diverse in those early days, then the people who build wealth will be more diverse and they’ll have the option to go out and be seen as more investable as founders or become investors themselves,” Mendy explained. Their initial $25 million fund allowed them to invest smaller sums, but with this new fund, they plan to make larger, early-stage investments.

Institutional investors supporting the renamed Westbound include Google parent Alphabet, MetLife, the Ford Foundation, the Schusterman Family Foundation, Bessemer Venture Partners, Foundry Group, Lux Capital, and Norwest Venture Partners. Half of Westbound’s profits support a foundation that provides funds to equity-focused nonprofits and programs.

Among Westbound’s standout investments are Sierra and Esusu, a credit-building rent payments tool which made the Forbes Fintech 50 list for 2024 and is one of the few billion-dollar startups led by a Black entrepreneur. Mendy stressed that supporting underrepresented founders wasn’t done for altruistic reasons but was about investing in the top performing companies.

Mendy, a Bay Area native, is committed to transforming the industry into one that enhances community value and equity. Taking his professional experience into account—including a stint at the Boys & Girls Club of the Peninsula, an education-focused organization serving San Mateo County—Mendy believes that raising funds will help him scale his impact beyond his local community.

With a current partnership that includes Sterental, a Venezuelan immigrant and corporate culture specialist who previously worked at Google, Westbound investors are confident they’re on the right track. They’re eager to leverage their new fund to catalyze further change in an industry that’s notably struggled to fully support diversity.

Source: Westbound Raises $100 Million To Invest In Black And Latin Founders.