Elevate Capital reports significantly higher return percentages than traditional VCs; plans to launch Elevate Capital Fund III in early 2024
PORTLAND, Ore., Jan. 10, 2024 — Elevate Capital, the nation’s first institutional venture capital fund that specifically targets investments in companies led by underrepresented entrepreneurs including women, BIPOC, LGBTQ+, and those with limited regional access to capital and opportunities, today announced the release of the firm’s first 2023 Elevate Capital Impact Report. The report finds that Elevate Capital has achieved significantly stronger returns than traditional venture capital firms since it was founded in 2016. The firm plans to launch Elevate Capital Fund III in early 2024.
“The steady, significant growth and success we’ve seen over the years have already created $260 Million in multigenerational wealth for these entrepreneurs and their communities – a goal at the heart of Elevate Capital,” said Nitin Rai, Elevate Capital Founder and Managing Partner. “Our fundamental investment strategy is based on our belief that these underrepresented entrepreneurs are an untapped pool of visionaries with disruptive ideas and products that we are proud to support through our investments.”
- Women founders comprise 67% of Elevate Capital’s investments.
- 93% are founders who identify as BIPOC, LGBTQ+, or veterans.
- Currently, AUM (assets under management) is $60 Million.
- Elevate’s first $10 Million 2016 vintage fund with 30 investments has had seven exits (67% women and 62% BIPOC founders) and has returned 18% average cash distributions annually to its limited partners with a 22% net IRR (internal rate of return).
- The seven company exits contributed nearly $260 Million in generational wealth to the founders and employees of the companies; $60 Million of which was returned in cash to them.
“The Elevate Capital fund has additional active companies in its portfolio that we believe will duplicate the existing impact,” said Rai. “Elevate is proving that these entrepreneurs, when provided with mentoring, connections, and capital, will outperform with returns leading to a wider and deeper impact in wealth creation.”
“One of the reasons I decided to work with Nitin Rai is because he’s an entrepreneur himself. With Elevate Capital, his story has always been based around being able to give back. However, he wants to give back to businesses that are able to be sustainable and grow,” said Allie Magyar, Founder/Former CEO of Hubb and Elevate Capital Limited Partner. “I returned Elevate’s investment in my company in a very short amount of time and immediately became an investor in the Elevate Fund. This is what Elevate is about: creating generational wealth and creating a circle of community that raises everyone up at the same time.”
“Based on our strong track record of success, we plan to launch Elevate Capital Fund III in early 2024. We will continue to invest in underrepresented founders across the U.S. as we deepen our investments in the Pacific Northwest and expand our investments in new regions, particularly New York, the District of Columbia, Florida, Louisiana, and Georgia. We’ve spent significant time in these states and established a quality pipeline of diverse founders who are investment-ready,” said Rai.
“We consider Elevate Capital a distributor of compassionate capital: funds dispersed with the intention of empowering underrepresented founders to help increase economic mobility and generational wealth creation in their communities. Whether raising venture capital or offering time and energy, the effort is worth it. We are proud to make a difference in the lives of these founders, both right now and for decades to come,” said Rai.
About Elevate Capital
Founded in 2016, Elevate Capital is the nation’s first institutional venture capital fund specifically targeting investments in underrepresented entrepreneurs, which includes women, BIPOC, and LGBTQ+ communities or those with limited regional access to capital and opportunities. Visit elevate.vc or follow Elevate Capital on X, Facebook, and LinkedIn.
SOURCE Elevate Capital
