Zeal Capital Partners, a Washington, D.C.-based venture capital firm founded in February, has successfully raised $22.3 million toward its goal of launching its first $50 million Inclusive Investing Fund. The new fund is backed by notable supporters including PayPal, The Alfred P. Sloan Foundation, family offices, business leaders, and investors.
Vision and Strategy
Nasir Qadree, founder and managing partner of Zeal Capital Partners, emphasizes the firm’s commitment to inclusive investing. In a statement to Crunchbase News, Qadree highlighted the firm’s approach:
“Inclusive investing is our strategy, and when you build a team this way, you widen the lens and geography. When more than 40 million Americans are unemployed and only 28 percent are ‘financially healthy,’ we need more businesses delivering solutions to bridge the wealth and skills gap at scale.”
Investment Focus and Opportunities
Zeal Capital Partners is targeting investments in the financial technology sector and the future of work. Qadree notes the substantial $4.4 trillion economic opportunity arising from under-investment in companies led by diverse management teams. His background includes roles at Village Capital and as associate director of social investments for AT&T, underscoring his expertise in this area.
The fund is set for a 10-year lifecycle, with plans to invest in 20 to 24 companies over a four-year span. Zeal’s inaugural investment is in Esusu, a fintech company that raised a $2.3 million seed round in August. Esusu aims to enhance consumer credit scores, reduce eviction rates, and address vacancies through its innovative mobile platform.
Future Investments and Goals
In addition to its investment in Esusu, Zeal plans to invest in two or three more companies this year. The firm is prepared to offer seed funding ranging from $250,000 to $500,000 and Series A rounds from $750,000 to $1.3 million.
Qadree reflects on the impact of the 2020 environment, including the global pandemic, social unrest, and economic downturn, stating that these factors “turbo-charged and proved” the necessity of Zeal’s approach in the marketplace.
Expanding Horizons
Zeal Capital Partners is also focusing on secondary markets, the “fly-over” cities between New York and San Francisco. Qadree highlights the importance of recognizing missed investments and sourcing companies from these regions:
“There is just as much, if not more, innovation happening in the secondary market or fly-over cities. We aim to democratize access to capital because the better story is there is innovation all across the United States.”
