Fifth Star Funds

Fifth Star Funds is a first-of-its-kind philanthropic venture fund dedicated to addressing the racial funding gap in entrepreneurship. Today, less than 1% of venture capital is awarded to Black founders—a systemic inequity rooted in centuries of economic exclusion. We’re tackling this injustice head-on by investing in underrepresented tech founders at the critical “Friends & Family” (F&F) funding stage, where access to early capital often determines a startup’s success. Our innovative evergreen model turns tax-deductible donations into equity investments of in promising founders who face barriers to traditional funding. Returns from successful investments are reinvested into the fund, creating a self-sustaining ecosystem that supports future generations of entrepreneurs. We’ve invested in 27 companies, proving product-market fit and showing that our portfolio companies advance to the next funding stage at rates 10x the national average. With the support of partners like Salesforce, Goldman Sachs, and the Steans Family Foundation, we’re working to scale this mission nationally, unlocking the potential of Black founders annually and generating $5 billion in Black wealth each year. This isn’t just about funding startups—it’s about transforming communities, driving innovation, and creating generational change. Join us in transforming the entrepreneurial landscape and bridging America’s wealth gap. — Fifth Star Funds is a registered 501(c)(3) nonprofit organization. We invest in early-stage companies whose founders have faced material barriers to accessing capital due to racial discrimination. While our research primarily addresses challenges faced by the Black community and the potential impact investment programs like ours could have on such challenges, our investment program is open to applicants of all races who can demonstrate they have experienced racial discrimination in securing startup funding.