Zeal Capital Partners Closes $82M Fund II with Major Institutional Backers
Washington, D.C.-based venture firm Zeal Capital Partners has successfully closed its second fund at $82 million, signaling strong investor confidence despite macroeconomic challenges. The fund attracted limited partners including Citi Impact Fund, M&T Bank, Wells Fargo, and Spelman College.
Investment Strategy & Portfolio Focus
Fund II will maintain Zeal’s established investment thesis:
- Sector Focus: Financial technology, healthcare, and future of work innovations
- Check Sizes: \(1M-\)2.3M initial investments
- Follow-on Reserves: 50% of capital allocated for subsequent funding rounds
The firm has already deployed capital into five portfolio companies, including:
- Seven Starling: Maternal health platform
- Debbie: Emerging fintech solution
Navigating a Challenging Fundraising Environment
Founder and Managing Partner Nasir Qadree acknowledged the difficult climate for Fund II, citing:
- Macroeconomic uncertainty
- Limited partner portfolio rebalancing
- Tighter allocation windows
“These headwinds sharpened our strategy and reaffirmed our approach,” Qadree told TechCrunch. “Over 80% of our Fund I LPs recommitted—a powerful validation of our ability to identify category-defining companies.”
The Growing Momentum of Diverse-Led Funds
Zeal’s successful close follows several notable raises by Black-led investment firms:
- Slauson & Co.: $100M Fund II (September 2024)
- Illumen Capital: $32.75M fund (November 2024)
- Symphonic Capital: $13.5M inaugural fund (April 2025)
- Cherryrock Capital: $172M Fund I (February 2025)
This trend demonstrates sustained investor appetite for diverse fund managers, even amid shifting political landscapes affecting DEI initiatives.
Firm Background & Track Record
Since its 2019 founding, Zeal Capital Partners has:
- Invested in 40 companies total
- Previously closed Fund I at $62.1M in 2021
- Maintained a generalist approach while demonstrating sector expertise
The firm’s continued growth positions it as an increasingly influential player in early-stage venture capital, particularly for startups driving innovation in financial services, healthcare technology, and workplace evolution.
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