Fifth Star Funds

Fifth Star Funds is a nonprofit organization based in Chicago, Illinois, dedicated to fostering a more equitable startup ecosystem by providing early-stage capital to founders who have faced material barriers due to racial discrimination. The organization offers $25,000 investments, aligning with the average Friends & Family round in the U.S., to support overlooked founders in validating their business ideas and gaining traction for future funding opportunities. This approach aims to level the playing field for entrepreneurs from underrepresented communities.

The fund operates on a philanthropic 'evergreen' model, welcoming contributions from individuals, companies, and foundations to support its mission. All contributions are tax-deductible, and 100% of investment returns remain within the fund, enabling the financing of more underrepresented founders as startups succeed. This model emphasizes community involvement and reinvestment to create a sustainable impact on the entrepreneurial landscape.

Fifth Star Funds is open to applicants of all races who can demonstrate they have experienced racial discrimination in securing startup funding. By addressing the wealth gap and promoting social justice, the organization strives to create a more inclusive tech ecosystem and empower founders from diverse backgrounds to succeed in their entrepreneurial endeavors.