JFFVentures reaches $15 million first close of $50 million workforce fund

JFFVentures, the venture arm of the nonprofit Jobs for the Future, announced on April 4, 2024, a $15 million first close for its second fund, JFFVentures Fund II, which has a target of $50 million. The fund backs founders building HR, education and workforce technology aimed at improving economic mobility for workers in middle- and low-wage jobs.

Limited partners named in the announcement included the Quality Jobs Fund, ECMC Foundation, Gong Family Foundation, Autodesk Foundation, Workday Foundation, The SCAN Foundation and the American Council on Education. TechCrunch reported that the fund planned to invest in 30 to 35 startups at the pre-seed and seed stages, with initial checks of $250,000 to $1 million, the ability to lead rounds, and reserves of $1 million to $2 million for follow-on investments in companies meeting financial and impact goals.

According to TechCrunch, Fund II can place up to 20% of its capital in startups outside the United States, a change from the first fund, which invested only domestically. Fund documents commit that at least half of the founders it backs will identify as underrepresented, and part of the team's carried interest is linked to social impact targets. The fund operates separately from Jobs for the Future but can draw on its network of government, corporate, education and nonprofit partners. Sabari Raja was named managing partner of Fund II, alongside JFFVentures managing partner Yigal Kerszenbaum.

The announcement reported that the inaugural fund made 55 investments, including Cell-Ed, ChargerHelp, Factory Fix, AdeptID, Climb Credit and Nepris. It said 65% of those portfolio companies had gone on to raise capital from later-stage investors and that 84% of the founders it backed identified as underrepresented in venture capital. The new fund looks at solutions for workers across sectors such as healthcare, climate, information technology, retail and hospitality. Announced supporters included Ted Mitchell, who leads the American Council on Education and previously served as US Under Secretary of Education.