Sixty8 Capital, a US-based venture capital firm focused on startups led by underrepresented groups, has reached a $20m first close of its fund with backing from pharmaceutical firm Eli Lilly.
The fund has also secured capital commitments from financial services firms First Internet Bank and Bank of America as well as 50 South Capital, The Indiana Next Level Fund and the Central Indiana Community Foundation.
Sixty8 is industry agnostic but is concentrating on companies led by founders from underrepresented groups in entrepreneurship, such as women, black and Latinx people and members of the LGBTQ+ community.
The firm will deploy the fund by investing 25 to 30 pre-seed and seed-stage companies with a geographical emphasis on the Midwest region of the US, providing between $250,000 and $500,000 per deal.
Sixty8 has partnered fellow VC firm Allos Ventures for the fund and Paul Ehlinger, a principal at Allos, will join Sixty8 as a venture partner. One of its first investments is in Qualifi, the US-based developer of a recruitment software platform.
Philip Johnson, senior vice-president and treasurer at Eli Lilly, said: “Diverse and historically underrepresented founders struggle to obtain capital to form and build their businesses.
“Lilly’s investment in Sixty8 Capital is representative of our broader efforts to use our financial and human capital to create lasting change that makes life better for people in the communities we serve.”