Unusual Ventures is a new fund that is attempting to invest in founder's moral compasses along with their startups, according to Business Insider.
Startup founders are becoming aware and concerned about where funding from venture capital firms is coming from. Unusual Ventures is attempting to align with founder's values when they are deciding which firm best suits their financial and moral needs.
The firm recently announced its second fund of $400 million. The fund is backed by nonprofits, university endowments, and historically black colleges and universities. The firm is attempting to change the broken model creating unsustainable growth in Silicon Valley.
"When the firm was getting started, everyone was clear we wanted to work with an LP base that we could be proud of instead of investing on behalf of wealthy individuals that frankly have enough money," co-founder John Vronis said. "When we pitch that to the entrepreneur, it very clearly resonates with this new breed of entrepreneur because they really care about where the money comes from."
The idea for the fund came about as founders become aware of where venture capital firms get their funding. Saudi Arabia has been a major source of funding for startups, specifically SoftBank's massive Vision Fund.
There is major concern over Saudi Arabian funding due to the kingdom's multiple human rights violations and brutal murder and dismemberment of Washington Post journalist Jamal Khashoggi.
Unusual Ventures recently announced a $400 million fund backed by nonprofits, university endowments, and historically black colleges and universities in its attempt to changing the broken venture capital model in Silicon Valley.