Impact X aims to raise £100 million for second fund with Bank of America backing

Impact X-Capital Partners: Impact X Capital Partners, a venture capital firm with a focus on diversity, announced on Monday its ambition to raise £100 million ($126 million) for its second fund, with backing from Bank of America among others.

The firm, known for its early investment in the rapidly growing insurance technology company Marshmallow, revealed plans to deploy funds in later-stage seed and Series A funding rounds across various sectors, including technology, media, and healthcare.

Paula Groves, Impact X Founding Partner and Chief Investment Officer, stressed the importance of supporting underrepresented entrepreneurs, citing persistent statistics indicating the disproportionate allocation of venture capital. Groves stated, "Until underrepresented entrepreneurs reach economic parity in terms of access to and allocation of capital, this work will continue to be very important."

In addition to Bank of America's investment from its balance sheet, other notable investors in the IX Global I fund include the Visa Foundation, Guy's and St Thomas' Foundation, and technology venture capital investor Atomico.

Eric Collins, Impact X Chief Executive and Founding Partner, highlighted the significance of the capital allocation, stating, "This historic capital allocation not only validates our track record but also equips us with the resources to make a lasting impact on diverse-led businesses."

Bernard Mensah, President of International at Bank of America, emphasised the institution's commitment to advancing economic opportunity for diverse communities, stating that the investment "underscores our ongoing commitment to advance economic opportunity for diverse people and communities."

The first investment from Impact X Global I is slated for British property technology company iKnowa.

(With Reuters inputs.)