Open Opportunity Fund

The Open Opportunity Fund is a venture capital fund dedicated to investing in U.S. companies founded by Black, Latinx, and Native American entrepreneurs. Launched in June 2020 with an initial $100 million, the fund aims to support underrepresented founders by providing capital and access to SoftBank Group's extensive network. In March 2022, the fund transitioned into an uncapped, evergreen structure, allowing for continued investment in visionary founders and fostering a growing community of over 70 companies. The fund's portfolio spans various sectors, including technology, financial services, healthcare, education, and consumer goods, reflecting its commitment to diverse industries and innovative business models. The Open Opportunity Fund's mission is to demonstrate that racial diversity and investment performance are not mutually exclusive, striving to generate exceptional returns while promoting inclusivity in the venture capital ecosystem. By leveraging SoftBank Group's resources and expertise, the fund offers more than just capital, providing founders with strategic support and opportunities for growth. This approach underscores the fund's dedication to creating a more equitable and diverse entrepreneurial landscape in the United States.

In May 2023, the fund rebranded as the Open Opportunity Fund and announced the launch of a second fund with a $150 million target, aiming to continue investing in Black and Latino-led startups. This rebranding signifies the fund's open access for other limited partners and organizations to invest, moving beyond being solely backed by SoftBank. Serial entrepreneur and investor Paul Judge assumed leadership as chairman, emphasizing the fund's commitment to expanding its impact and scale. The second fund seeks to exceed the initial scope of the first, which invested in 75 companies led by Black and Latino individuals, including notable startups like Greenwood, Career Karma, and Praxis Labs. The Open Opportunity Fund's evolution reflects a broader industry trend towards inclusivity and diversity, addressing the significant funding disparities faced by underrepresented founders. By opening access to other investors and increasing its target size, the fund aims to amplify its support for diverse entrepreneurs and contribute to a more inclusive venture capital ecosystem.

In December 2023, SoftBank sold its Open Opportunity Fund to its chairman and managing partner, Paul Judge, and former SoftBank COO Marcelo Claure. Judge and Claure now fully own the firm's $100 million Open Opportunity Fund 1, the $150 million Fund 2, and the entire portfolio. This acquisition marks a significant milestone in the fund's journey, demonstrating a concrete move towards more diverse representation within all layers of the venture capital ecosystem. The sale also highlights the fund's success in attracting leadership from within the communities it aims to support, ensuring that the fund's mission and vision remain aligned with the needs and aspirations of underrepresented founders. The Open Opportunity Fund's continued growth and evolution underscore the importance of sustained commitment to diversity and inclusion in the venture capital industry, aiming to create a more equitable and accessible environment for all entrepreneurs.