Fund the First Check
Your donation provides catalytic capital to overlooked founders and is reinvested to support the next generation.
Fifth Star Funds is redefining the starting line of entrepreneurship.
Most venture funds wait until founders already have traction. But for many talented entrepreneurs, the first rung—the Friends & Family round—doesn’t exist. That gap shuts out thousands of promising companies and leaves untapped innovation on the table.
We created the nation’s first philanthropic Friends & Family fund to close that gap. With $25K catalytic investments and an evergreen model that reinvests 100% of returns, we give overlooked founders the chance to start.
Our approach is different. We use an objective, data-driven rubric to back founders based on insight and execution, not inherited wealth or networks. Every founder gets hands-on support and access to a trusted community. The results speak for themselves: while only 2.4% of startups nationally raise $100K+ after the Friends & Family stage, 25% of our portfolio has already achieved it—outperforming the national average by more than 10x.
The opportunity is massive. Each year, 6,000 Black founders have investment-ready ideas but lack early capital due to a 22x wealth gap. By closing this first gap, donors unlock billions in wealth creation and ensure opportunity is no longer determined by family finances.
Fifth Star is more than a fund—it’s a movement. We don’t just invest in companies, we invest in possibility. Together, we can reshape who gets to build at scale, fueling inclusive innovation and lasting economic impact.
Most venture funds wait until founders already have traction. But for many talented entrepreneurs, the first rung—the Friends & Family round—doesn’t exist. That gap shuts out thousands of promising companies and leaves untapped innovation on the table.
We created the nation’s first philanthropic Friends & Family fund to close that gap. With $25K catalytic investments and an evergreen model that reinvests 100% of returns, we give overlooked founders the chance to start.
Our approach is different. We use an objective, data-driven rubric to back founders based on insight and execution, not inherited wealth or networks. Every founder gets hands-on support and access to a trusted community. The results speak for themselves: while only 2.4% of startups nationally raise $100K+ after the Friends & Family stage, 25% of our portfolio has already achieved it—outperforming the national average by more than 10x.
The opportunity is massive. Each year, 6,000 Black founders have investment-ready ideas but lack early capital due to a 22x wealth gap. By closing this first gap, donors unlock billions in wealth creation and ensure opportunity is no longer determined by family finances.
Fifth Star is more than a fund—it’s a movement. We don’t just invest in companies, we invest in possibility. Together, we can reshape who gets to build at scale, fueling inclusive innovation and lasting economic impact.
Fifth Star Funds is a registered 501(c)(3) nonprofit organization. We invest in early-stage companies whose founders have faced material barriers to accessing capital due to racial discrimination. While our research primarily addresses challenges faced by the Black community and the potential impact investment programs like ours could have on such challenges, our investment program is open to applicants of all races who can demonstrate they have experienced racial discrimination in securing startup funding.
© 2025 Fifth Star Funds, Inc.
© 2025 Fifth Star Funds, Inc.
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