LOS ANGELES (December, 2023) — Diversity-focused venture fund, Fabric VC, is thrilled to announce their close 1 of ~$2 million for its first fund with the thesis of backing top decile diverse founders with mission-aligned private investors to shift the paradigm of venture capital.
Founded by GP Laurel Mintz, an award-winning marketer, operator, and trailblazer in the field of equity, Fabric began raising funds in 2023 to fix the systemic barriers in VC both on the founder and funder sides to weaving a better future for BIPOC, LGBTQIA+ and women founders.
Heading into 2024, the firm looks forward to investing in seed-stage startups, owned by underrepresented founders developing category re-defining game changers in four key areas: 1) Gen Z and Gen Alpha-focused fintech, 2) consumerized healthcare and digital health tools, 3) platforms for the future of work and; 4) Web 3.0-driven consumer tech.
“I started this firm a year ago when I heard that less than 2% of funding goes to diverse-led businesses. At my marketing agency, Elevate My Brand, we’ve worked with over 300 brands, over 200 of whom have been diverse-led and 40% had raised capital, so we knew this market. I saw the opportunity to do well by doing good and I thought, if not me who, if not now when,” Mintz shared.
In the early stages of founding the firm, Mintz discovered how her 15+ years in marketing could benefit the firm in an impactful way. By deploying proprietary marketing research software, the fund plans to de-risk its investments with an extra layer of diligence Mintz believes will allow the fund to pick better winners earlier. Named the Fabric VC Thread Count, this process factors in an omnichannel marketing review for a portfolio company and its competitors to discover the startup’s marketing potential, the added value Fabric brings to the table with its partners at Elevate My Brand, Mintz’ first company.
“When I found that 78% of businesses fail due to poor business & marketing plans, I knew my marketing expertise could make a difference in the way Fabric vets its portfolio companies. Additionally, for the companies we find aren’t quite ready yet, we share the Thread Count analysis with them so they can learn how to outperform their competitors. It’s a win-win,” Mintz explained.
Following the firm’s quadruple bottom line approach, Fabric will invest in startups that generate benefits for people, planet, profit and purpose. Previous to the first close, the fund had already backed Cadence, an AAPI woman-owned startup creating patented leakproof, TSA-compliant, magnetic containers made from recycled material of ocean-bound plastic and material scraps.
Fabric is among the first VC firms that specifically supports diverse founders, an area funds have historically bet against. “Systemic bias in VC has led to the underestimation of minority entrepreneurs, even though studies have shown that companies with higher diversity are 33% more likely to outperform. As a result, Fabric VC has the unique opportunity for outsized returns while ‘doing the right thing’,” Mintz shared.
Mintz secured the fund’s first close with the backing of board members and private investors with first-hand experience running their own companies. With the firm run by operator-investors such as Freya Estreller co-founder of Coolhaus, Jilliene Helman CEO of Realty Mogul, and Chelsea Grayson of Spark Networks, the fund is uniquely positioned to see deals months earlier before traditional VCs.
“While raising this first round, I’ve met so many inspiring founders and funders dedicated to creating more parity and equity in VC. Their aligned passion to change the face of venture makes me excited to start deploying in deserving companies and raise the second round next quarter,” Mintz concluded.
About Fabric VC: Fabric VC’s mission is to weave together diverse founders with the funding they need and deserve. The board’s experience matched with our inspiring diverse-run portfolio companies will elevate and support the need for diversity, equity and inclusion in fundraising. Now is the time to start doing great things together by investing in companies doing great things in the world.
About Laurel Mintz: With a J.D/M.B.A from Rutgers University and over 13 years running an award-winning marketing agency, Laurel Mintz is uniquely positioned to lead a fund like Fabric VC. Laurel has worked with more than 200 companies in the CPG and technology spaces, from startups to blue-chip global brands like Facebook, Verizon Digital Media, Geico, PAW Patrol and Zendesk. Her Board of Directors work and extraordinarily networked presence with organizations like Women Founders Network, Los Angeles Venture Association, Reuters and Women Business Enterprise National Council provides no shortage of relevant deal flow.