BBG Ventures, founded in 2014 by Susan Lyne and Nisha Dua after spinning out from AOL, emerged as an early investor in female-led startups. Recognizing the potential in this underfunded segment, BBG backed companies like Spring Health, founded by April Koh, and acne-care brand Starface. This focus on female entrepreneurs served untapped markets and delivered returns.
Pioneering Support for Female Founders
BBG Ventures initially carved a path by investing in women-led businesses, addressing an overlooked market segment with significant growth potential. This approach yielded strong results, validating the firm’s commitment to supporting female entrepreneurs.
A New $60 Million Fund for Diverse Founders
Marking its tenth anniversary, BBG Ventures has now raised a new $60 million fund to support a broader range of founders who bring diversity across race, age, and income. Moving beyond its original focus, the firm aims to foster growth across various underrepresented backgrounds. The second fund, supported by LPs like State of Michigan Retirement Services and Illumen Capital, brings BBG’s assets to $130 million with over 100 investments. So far, it has backed seven companies, including a recruiting platform for hourly workers and an infant formula brand, deploying 14.7% of its capital.
The “Polycultural Future” Thesis
The venture capital landscape has shifted since BBG’s inception, influenced by new cultural and demographic insights. Rather than aligning with prevailing narratives, Dua emphasizes that BBG’s shift reflects research into “polycultural” trends in the U.S., which focus on overlapping identities across race, age, and political beliefs. For example, demand for culturally relevant healthcare is rising as Black Americans seek providers who understand their unique needs. Dua sees this as an advantage for diverse founders who resonate with multifaceted audiences.
Targeting Healthcare, Fintech, and AI
This broader mandate opens new opportunities in sectors like healthcare, fintech, and AI. While the fund has invested in AI, BBG Ventures does not solely focus on it. Instead, it supports startups like Nara, a brand producing FDA-approved, organic infant formula, reflecting BBG’s commitment to innovation where it aligns with its diverse founder base.
The Small Fund Hurdle
Lyne acknowledged the fundraising challenges smaller VC firms face, particularly those under $100 million. As large funds dominate capital allocation, smaller funds navigate longer LP decision cycles. However, BBG’s focus on inclusive investing has attracted impact-oriented LPs who support its mission to broaden capital access.
Commitment to Women-Led Startups
Despite its expanded focus, BBG Ventures remains committed to women-led businesses. Lyne and Dua underscore that female founders will continue to be a priority even as they diversify their portfolio, aligning with a world where success increasingly depends on understanding consumers’ intersecting identities and needs.
