Illumen Capital, a Black-owned and operated impact fund addressing systemic inequity, has raised a $32.75 million Catalyst Fund.
The Catalyst Fund included capital from the Health Forward Foundation, the California Wellness Foundation, and the Winthrop Rockefeller Foundation, among others. The fund will support first-time fund managers and entrepreneurs, especially those from underrepresented backgrounds.
Illumen Capital, founded in 2016 by Daryn Dodson, is an impact fund of funds that addresses systemic inequity by reducing racial and gender bias in investing. The Oakland-based investment firm focuses on investment in diversified sectors across the United States.

Help Underrepresented Founders To Access Capital
The Catalyst Fund is arriving at a critical moment. According to Crunchbase, Black founders received less than 1% of venture capital funding last year. This decline reflects persistent biases in the venture ecosystem, which Illumen Capital Founder Daryn Dodson attributes to current economic and political uncertainty. 

Despite a growing presence in private markets, diverse managers continually need help accessing institutional capital. Often subject to familiarity bias – the tendency for investors to gravitate to familiar options over unfamiliar ones – these underrepresented fund managers are systematically overlooked compared to their white counterparts, according to Illumen Capital’s research with Stanford SPARQ1. 
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Furthermore, investors increasingly favor well-known names and larger funds2, making it even more challenging for emerging companies and funds to secure the initial funding essential for success.
“During times of economic uncertainty, biases increase, directing billions of capital to the same networks,” Dodson told TechCrunch.

The Catalyst Fund will prioritize investing at least 65% of its capital into first-time venture managers and allocate up to 35% for direct co-investments. Illumen Capital aims to deploy the funds within the next 18 months, focusing on education, health, financial inclusion, climate, and sustainability.
This new initiative complements Illumen Capital’s previous efforts. The firm manages $285 million in assets, including its $168 million Fund II launched in 2023. 
Illumen Capital’s Mission to Reduce Bias
Illumen Capital invests in venture, growth, and private equity funds and works closely with fund managers to implement strategies and tools designed to reduce racial and gender bias in hiring, investment, and company support processes.
Related Post: Harlem Capital Is Raising $150 Million Fund To Support Diverse-Led Startups

The Catalyst Fund included capital from the Health Forward Foundation, the California Wellness Foundation, and the Winthrop Rockefeller Foundation, among others. 
For many investors, the Catalyst Fund is not their first investment in Illumen Capital. This demonstrates their continued confidence in the Oakland-based investment firm’s mission to leverage their influence in reducing bias in venture capital and private equity decision-making.
“The Illumen Catalyst Fund provided a compelling opportunity to support the next generation of Black and Latino/a/x venture managers and early-stage companies,” said Christie Zarkovich, Chief Administrative, Financial, and Investment Officer, the Health Forward Foundation. 
“With its strong sourcing networks, expertise in backing first-time managers, and capacity to make smaller investments, Illumen Capital is an invaluable partner in our efforts to promote racial equity.”

Main image: Founder and CEO, Illumen Capital, Daryn Dodson. Image Credit: Daryn Dodson

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