Corigin Ventures (now Alpaca VC) Commits $2.5 Million to Diverse GPs

Alpaca VC
Alpaca VC
Jul 21, 2020 · 5 min read

Unless you’re living under a rock, it’s impossible to unsee the social unrest and power of collective protesting that has overtaken the country these last few weeks. Systematic racism has existed for centuries, but this is an inflection point for us as individuals and society. At Corigin, we value the notion that diverse, representative and extremely talented founders and investors can create the future we want to live in. How many studies does McKinsey need to publish to prove that diverse voices lead to better collective outcomes? We at Corigin also value transparency, believing that it is the quickest path to iterative success and encourages others to speak their truths. Lastly, we value grit and doing things the hard way, even if that takes longer.

We also believe that actions speak louder than words. Today, we want to move beyond offering an open dialogue or office hours and push towards long-standing impact. As the twitterverse has loudly screamed, hire or wire. Below we are outlining our commitments and plans as they stand today (these do include hiring and wiring, for the record). We are excited about marching ahead, but admit that enacting this plan will take a lot more listening, and so we want to hear from the community — those who we know and do not — about how we can continue to push the venture ecosystem into the twenty-first century.

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Step 1. Commit dollars to Black & Latino/Latina GPs

Diverse GPs can provide us access to secondary networks far better than we can ourselves today. We also believe that we can help these select GPs beyond just providing them money. We can give access to follow-on capital for their portfolio; we can introduce them to LPs and other funding sources; and we can help them (especially first-time managers) institutionalize their fund and processes.

So who are we looking for? Here is our criteria to invest:

  1. Majority Black and/or Latino/Latina owned GP, US based
  2. Pre-Seed and Seed focus
  3. Preferably Fund I or II

We will write 3–5 commitments, between $500K-$1M each. This ensures that we are ourselves peers or upstream capital for the GPs we commit to, so we can share in learnings and in dealflow. If you, or someone you know, is qualified, please email dgoldberg@corigin.com directly.

Step 2. Benchmark our progress

Our stated goal:

Moving forward, we strive to maintain 50% under-represented founders in our portfolio. And we want at least 15% of our portfolio to represent Black or Latino/Latina founders.

*defined as female, LGBTQ+, Black, Latino/Latina, or Indigenous

** defined as Black, Latino/Latina, or Indigenous.

Step 3. Create better processes for dealflow

We are not managing to warm intros.

Know that some 30% of deals we get sent are cold inbounds. We do not believe we need to know you (or we need to be six-degrees-of-separation away from Kevin Bacon) to invest in you. As GPs ourselves, we haven’t come from traditional business schools or backgrounds, so we understand the value of casting a wide net for talent. We all check our DMs regularly and actively check our general inbox: ventures@corigin.com

We want to broaden our networks.

We believe one solution is to build stronger relationships with educational institutions in NYC, where Black and Latino/Latina students organically create their own social networks. We want to know about other groups and avenues, though, so please do not be shy if you have ideas.

Step 4. Continue hiring diverse talent

As we consider our next set of hires, our goal is to consider a diverse candidate pool of investment professionals. Given the current pipeline issue the industry faces we know that this is a hiring framework we need to cultivate starting now and in the years to come.

We hope that in exposing our own data and transparently talking about our goals to be better, we join the many others in the industry paving a new, more inclusive path forward. We have been dedicated to diversity as a firm, and so will put our money where our mouth is.

Signed,

Aubrie Pagano, David Goldberg, Ryan Freedman

Read the Business Insider article about our commitment here.

Alpaca VC

Alpaca VC leads seed companies reshaping the real world.

Alpaca VC

Written by

Alpaca VC

Alpaca is a New York based venture capital firm leading seed-stage investments in the founders defining the future of daily living.

Alpaca VC

Alpaca VC

Alpaca is a New York based venture capital firm leading seed-stage investments in the founders defining the future of daily living.

Alpaca VC

Written by

Alpaca VC

Alpaca is a New York based venture capital firm leading seed-stage investments in the founders defining the future of daily living.

Alpaca VC

Alpaca VC

Alpaca is a New York based venture capital firm leading seed-stage investments in the founders defining the future of daily living.

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