Collaborative Fund recently told Techcrunch that it had raised $125 million for its sixth flagship fund, taking less than 100 days to do so. But, it isn’t just raising the money that’s making the news. It’s what it’s for.
According to Collaborative Fund, the money isn’t going to be invested in SaaS. Instead, they’re putting it in underfunded sectors that most venture capitalists won’t touch, like health, food, and climate.
Amidst an uncertain economy with the shadow of the incoming United States Presidential elections looming, Craig Shapiro, the company’s founder and managing partner, reveals that most of their Limited Partners “have a very long-term view” and that “they understand that markets ebb and flow.”
For what it’s worth, Collaborative Fund has a history of making its investors happy. Most recently, its earlier investments have yielded positive results and gains. For example, its LPs can now enjoy their capital again following successful ventures with Reddit and Scopely.
Shapiro reveals that some of their LPs revealed to them that this doesn’t happen often, with some of them failing to receive a distribution from their venture funds for nearly two years. By returning the capital, Collaborative Fund is establishing rapport and trust among its LPs.
With a strong track record of successful investments, Collaborative Fund’s ventures in climate, health, and food, will be one to watch out for.