Investor FAQs

Yes. An accredited investor is a person or entity who is allowed to deal, trade and invest in financial securities as long as they satisfy one (or more) requirements regarding income, net worth, asset size, governance status or professional experience.

Our investment matrix is one of the areas that make Collab Capital unique. We follow a set of investment benchmarks but at a minimum our investments must meet the following criteria

• Minimum Requirements
  • A business owned by 51% or more by a Black founder
  • Tech, tech enabled, or innovative company with revenue growth potential of at least $10M
  • Collab Capital is able to provide value and resources
  • Founder attributes of a heart for community impact and a desire for ownership/optionality
  • Collab Capital evaluates and invest in businesses with revenue growth over a minimum of 3 month
• Desired
  • Minimum of $10K MoM in Revenue with potential realization of ROI in within the first 1 to 3 years of investment

At Collab Capital we look for 3 key things initially. First we look for companies and founders working on innovative solutions in niche or growth markets. Second, we look for companies with revenue and are tracking towards 1MM in annual revenue. Additionally, we want to ensure that we can see a path to 10MM in annual revenue. Finally, while placing the company’s financials in our proprietary calculations, we look to ensure that our model is a good fit for their business model and market. Though we will always remain opportunistic we want to ensure that our model meets the needs of the founder and their desired path of growth. For more information on investment criteria please see the “What are the investment criteria for the fund” FAQ

Because Collab Capital has identified a massive gap, and consequently an opportunity, in the funding market we have created a new approach/financial product to close the gap. This solution to this identified gap and leveraged networks of the founders has often and continues to find the best companies to invest in financially.

Our investment framework is based on impact and guided by the redemptive investment mindset. We see a lot of potential for our model in direct to consumer companies and enterprise software. We’ve also seen early signs of potential in tech enablement and productivity businesses. Finally, we won’t invest in industries/businesses that require long research periods or changes to policy for the product to eventually “fit” a market. These include biomedical, advanced hardware/electronic devices (think a new automobile) and aerospace/transportation (trains/rockets/etc.) companies. Additionally, our investments will be, in many ways, reflective of what we (the General Partners) collectively believe in.

Collab Capital General Partners will invest 2% of the fund.

Collab Capital does not provide a vehicle for individual investors to capitalize businesses directly. However, we do offer opportunities for our Limited Partners to play a more significant role in a startup’s growth and compensate them accordingly.

We are targeting cities like Atlanta, Detroit and Baltimore, where there is limited access to funding sources, but high social and corporate capital. These and other cities will be assessed as we look for where we can be most impactful and bring value to our portfolio.

Yes and yes. We are actively building an advisory board to help us achieve the goals of the fund and its portfolio companies.

The fund is active. You can hear more about our origins and recent self-published news and information on our Capital Innovation medium publication.