Dating and networking app Bumble has just announced the launch of the Bumble Fund, a new pot of money focused on early stage investments specifically aimed at helping diverse, female entrepreneurs raise capital for their businesses.
Last year, female founders received just $1.9 billion of the total $85 billion invested by venture capitalists — that’s a bleak 2.2 percent of 2017’s total money pot, according to Fortune.
Bumble, the four-year-old company, with over 37 million users and 85% female workforce, noticed the pretty obvious investment difference between female and male founded startups and decided to be the solution to ending sexist investing.
In a statement about the fund’s launch, Sarah Jones Simmer, Bumble Chief Operating Officer said:
‘Through Bumble Fund we’ll look not only to support those women leaders who have been largely ignored, but we’ll also demonstrate why those investments build smart, successful businesses.’
Bumble Fund’s main aim is to help female-founders who have been largely ignored by investors. The new fund will make investments ranging from $5,000 to $250,000 and so far Bumble has committed over $1 million, Forbes reported.
The fund will focus on early-stage investments, primarily in companies founded and run by women of color and others from underrepresented groups.
One of the first businesses Bumble Fund has invested in is Sofia Los Angeles, a swimwear company founded by Anasofia Gomez (also one of the winners of Bumble’s first ‘Bizz Pitch’ competition.
The team also plans to find more potential investments via Bumble’s own Bumble Bizz platform (a business network) and founders to back through its future Bumble Bizz pitch competitions.
In a blog post, the company revealed that startups headed by women had only received 2 per cent of all venture capital last year.