Bank of America Invests in Backstage Capital
Backstage Capital is excited to announce Bank of America as the latest investor in Opportunity Fund I.
“We are thrilled that Bank of America is a core investor in our newest, largest fund,” Arlan Hamilton, founder and managing partner of Backstage Capital, said. “Bank of America’s leadership and confidence in our fund strategy and firm is a strong signal that we’re confident other institutional organizations will pick up on and follow. This capital will directly impact the innovative, world class founders we fund, and we look forward to continuing to make the tech ecosystem more equitable while aiming to deliver attractive returns.”
Backstage has been investing in underestimated founders since 2015, and has built one of the largest portfolios of underestimated founders in venture capital by investing in 200 companies led by women, people of color, and LGBTQ+ founders.
Bank of America has committed $1.25 billion to advance racial and ethnic equality and create economic opportunity. As part of its broader commitment, Bank of America made a $350 million commitment to support minority and women-led companies through capital investments in mission-focused venture funds. In just over one year, more than $300 million of that funding has been committed across 100+ minority-focused and minority-led equity funds, and this investment into Backstage Capital is an example of that commitment.
“Bank of America’s investment into Backstage Capital underscores our ongoing efforts to address the persistent gap of access to the innovative founders and entrepreneurs who identify as women, people of color or LGBTQ+,” said Sameer Malhotra, director of Global Principal Investments, Bank of America. “Backstage Capital is well positioned to be a catalyst for minority entrepreneurs to launch and scale their business ideas. Backstage Capital’s existing portfolio of funded firms is already impressive, and through our investment, we look for many more success stories to come.”
Opportunity Fund I is a refreshed approach for Backstage, which has historically focused on small, very early stage checks into companies led by underestimated founders. Investments from Opportunity Fund I will be allocated primarily in outlier Backstage Capital portfolio companies. One such company, Career Karma, a Backstage Capital portfolio company, announced a $40 million Series B round in February. Backstage Capital made its first investment in Career Karma back in 2018 with a $25K check from a $1.25 million fund, and its latest raise represented a markup that would return two-thirds of that fund.
In addition to the refreshed strategy, new investors like Bank of America, Comcast, and the Jones Feliciano Family Office have committed to the fund. These commitments express confidence in the Backstage Capital team, strategy, and potential for financial returns represented by Opportunity Fund I. They join Arlanwashere Holdings, which represents a 1% GP commit in the fund.
Backstage Capital was one of the first movers in venture capital to invest solely in underestimated founders. Throughout the years, Backstage has achieved scale and impact. The firm is encouraged by new, institutional backers as it works to increase its assets under management and continue to change the landscape of the tech industry.
