CityRock has recently closed a $24 million Fund II dedicated to investing in founders from diverse backgrounds. This fund, part of H/L Ventures, aims to support companies in sectors such as climate, healthcare, and the future of work.
H/L Ventures operates various branches, including a venture studio and traditional funds. They engage in activities ranging from co-founding companies to providing capital. With three funds in the venture studio and two CityRock funds, their focus is on investing in Series A. Additionally, they have a seed program that assists pre-Series A companies within the broader H/L portfolio.
The CityRock Funds primarily target Series A investments, with the launch of CityRock Fund occurring in late 2019. The average investment size for CityRock Fund II will be $2 million, with provisions for follow-on investments in companies previously supported by CityRock Fund I. The fund is currently active and anticipates investing in approximately 14 Series A companies and a similar number of seed-stage companies through its seed program.
Having closed Fund I at $17 million in 2021, which is now fully deployed, the team has backed 15 companies, including AndieSwim, Group Black, and Aunt Flow. CityRock emphasizes diversity within its portfolio, with nearly 85% of founders coming from underrepresented backgrounds, as defined broadly by various identifiers such as gender, race, socio-economic status, sexual orientation, and military service.
Co-founder and managing partner of H/L Ventures, Oliver Libby, expressed the fund’s commitment to supporting diverse founders and their investments at the intersection of growth, impact, and diversity. Research shows that diverse founding teams yield positive outcomes, and despite challenges in the current investment climate, there remains an appetite for diversity-focused strategies.
H/L continues to prioritize diverse founders in industries like healthcare and climate, recognizing the value of their unique perspectives in driving innovation. The firm believes that diverse founders bring valuable insights that can lead to solutions for critical issues like energy efficiency and health disparities.
Established in 2009 by Eric Hatzimemos and Libby, H/L Ventures plans to deploy Fund II over a four-year period, with an average investment size of $1 million. Their goal is to support a diverse group of founders with a positive mission that can drive financial success while benefiting society and the world at large.
