Valor Ventures Fund 2 attracts The W.K. Kellogg Foundation (WKKF), The Georgia Tech Foundation and more sophisticated institutional investors through its commitment to premium venture capital returns paired with a commitment to racial and gender inclusion. The Kellogg Foundation investment represents approximately 10% of the targeted $25 million investment vehicle.

Lisa Calhoun, founding general partner at Valor, says, “Premium venture capital returns and inclusion mutually strengthen each other. Startups that get inclusion right, and those who invest in them, position themselves to win outsize returns.” Across the Valor’s portfolio so far, 70% of investments are in startups led by women and people of color. Valor Ventures Fund 2 has already made four investments--Physician360, Vital4 Technologies, LeaseQuery and Capway.

Research shows that investments in diverse founding teams historically return 30% more capital to investors

Cynthia Muller, director of investment at WKKF, says, “The Kellogg Foundation has remained focused on building a portfolio that strategically disrupts markets in order to drive more capital to low-income communities and communities of color. Because ultimately, more equitable communities allow children and their families to thrive. Valor’s Inclusion Premium investing philosophy stands out as a hands-on approach to maximizing returns through the investment in people of color and women. We’re compelled by the clear value proposition of investing at the seed stage in the Southeast and Valor’s leadership in the region.”

As a part of its inclusive sourcing activities, Valor produces the largest pitch event for startups led by people of color and women, Startup Runway. Investors and founders are invited September 9 for the showcase of competitively-selected, under-represented founders. Valor’s event was launched in 2016--this is its 9th Showcase of under-represented founders. “We’re not newcomers to this mission or strategy. The Black Lives Matter movement and the inequities illuminated by the COVID-19 crisis bring even more urgency to the opportunity to invest with financial rigor and inclusion to get top returns,” says Calhoun.