Lightship Capital, led by Candice Matthews Brackeen, is revolutionizing venture capital by focusing on BIPoC founders in the Midwest, challenging the traditional Silicon Valley model. With a recently raised $50 million fund, they aim for strong financial returns while fostering diversity in the startup ecosystem. The episode highlights their unique hands-on approach to supporting portfolio companies, building deep relationships with founders to drive collective growth and success.
Key takeaways
Lightship Capital's investment thesis centers on identifying high-growth potential in overlooked geographies and with underrepresented founders (BIPoC in the Midwest) which can be a model for other VCs to diversify their portfolios.
The hands-on approach of Lightship Capital, including embedded support and shared living/working experiences with founders, demonstrates an effective strategy for building strong founder relationships and accelerating business development.
The increased interest from institutional investors in funds like Lightship Capital post-BLM protests indicates a growing opportunity and demand for diverse investment strategies and founders, which VCs should leverage.
Candice Matthews Brackeen's journey from entrepreneur facing funding challenges to launching an accelerator and then a VC fund showcases the power of lived experience in identifying market gaps and building effective solutions for underrepresented groups.
The concept of "breaking down barriers" through direct engagement and trust-building with founders is critical for VCs looking to achieve robust financial performance and foster equitable economic growth.
Candice Matthews Brackeen is looking outside of typical Silicon Valley circles for the next billion-dollar company.
She’s a general partner at Lightship Capital, which raised a $50 million fund last summer that’s focused on companies from the Midwest that have Black, Indigenous or People of Color (BIPoC) founders. “Right now we’re trying to build the best portfolio possible to return capital to the LPs,” she said on the Modern Retail Podcast.
Matthews Brackeen first got the investing bug when she began working with startups in the Cincinnati area. She had difficulty raising money for her own company, and made a group for other Black entrepreneurs to talk shop. This group gave proof to how difficult the landscape was for non-white founders. With that, she launched an accelerator program five years ago. Slowly but surely, those experiences led helped Matthews Brackeen launch a venture capital fund.
On the podcast, she talked about how the investing landscape has changed over the last year. Following last summer’s Black Lives Matters protest, funds like hers began to get more noticed. Institutional investors began reaching out looking for funds in which they can participate. “We’re not a social impact fund, but there are investors who are involved with us for a social impact reason,” she said.
Part of her role as at Lightship involves helping both portfolio companies and other investors. Matthews Brackeen and her spouse, fellow Lightship co-founder Brian Brackeen, have spent weeks living nearby to founders to get a sense for their daily rhythms. They would have portfolio companies come out to Cincinnati or Miami and spend time together -- eating all meals together and spending most of the daylight hours working on business development. “I think that it’s important that we break down those barriers,” she said. “That’s the way that we grow relationships with our founders.”
Over the years, Matthews Brackeen has also found herself to both a liaison and a teacher at both en
What does this episode say about finance & fundraising?
Lightship Capital's investment thesis centers on identifying high-growth potential in overlooked geographies and with underrepresented founders (BIPoC in the Midwest) which can be a model for other VCs to diversify their portfolios.
What does this episode say about founder & leadership?
The hands-on approach of Lightship Capital, including embedded support and shared living/working experiences with founders, demonstrates an effective strategy for building strong founder relationships and accelerating business development.
What does this episode say about finance & fundraising?
The increased interest from institutional investors in funds like Lightship Capital post-BLM protests indicates a growing opportunity and demand for diverse investment strategies and founders, which VCs should leverage.
What does this episode say about finance & fundraising?
Candice Matthews Brackeen's journey from entrepreneur facing funding challenges to launching an accelerator and then a VC fund showcases the power of lived experience in identifying market gaps and building effective solutions for underrepresented groups.
What does this episode say about finance & fundraising?
The concept of "breaking down barriers" through direct engagement and trust-building with founders is critical for VCs looking to achieve robust financial performance and foster equitable economic growth.
