Dating and networking app Bumble today announced the launch of Bumble Fund, a new vehicle focused on early stage investments specifically aimed at helping diverse, female entrepreneurs raise capital for their businesses. Sarah Jones Simmer, Bumble Chief Operating Officer, will lead Bumble Fund’s investment strategy along with Bumble Senior Advisor, Sarah Kunst, the company says.
“Investing in and empowering women in business is something that our founder and CEO Whitney Wolfe Herd is deeply passionate about and is at the very core of what Bumble stands for,” said Jones Simmer, in a statement about the fund’s launch. “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 initial commitments include one of the winners of Bumble’s first “Bizz Pitch” competition, Sofia Los Angeles, a swimwear company founded by Anasofia Gomez. Its other commitments so far include Mahmee, a health care platform for coordinating prenatal and postpartum care; Female Founders Fund, another early stage fund for backing female talent; BeautyCon, the digital media company and festival operator focused on the beauty industry; and venture fund Cleo Capital, also focused on female founders.
The new fund will make investments that range from $5,000 to $250,000, in companies that are headed by women and focus on women’s interests. Bumble has committed over a million so far, Forbes reported. The company declined to disclose the size of its fund, however.
The team will also work to identify new, potential investments via Bumble’s own Bumble Bizz platform – the dating app’s business networking platform available within its flagship mobile app. The company will also find new founders to back through its future Bumble Bizz pitch competitions, it says.
The move could help bring more attention to Bumble Bizz, while giving the company a stake in promising companies. Bumble, however, only spoke of the need for more investment in female founders, not the other bottom line advantages to its own operations.
“For black, Latinx, and other women from underrepresented groups, that statistic is even more bleak,” the post explained. “Black women are both the most educated and most entrepreneurial demographic in the U.S., but received only 0.2% of all venture funding for their startups last year,” it noted.
Bumble, whose app now has over 37 million users worldwide and has an 85% female workforce, says it wants to help solve the problem of women being “largely ignored by the venture capital establishment” with this fund.