Expansion of Diverse Investment Company to $186 Million following Successful Closure of $82 Million Fund
Zeal Capital Partners Closes Second Fund at $82 Million, Boosting Assets Under Management to $186 Million
Washington, DC-based investment firm Zeal Capital Partners has concluded the raising of its second fund, Zeal Fund II, amassing $82 million. This brings the firm's total assets under management to an impressive $186 million within five years.
The newly gathered capital will be channeled into early-stage startups operating in fintech, healthcare, and the future of learning and work.
Expanding Investor Base
Zeal Capital Partners has experienced a significant expansion in its investor base upon the closure of the new fund. Notable institutional investors include Citi Impact Fund, M&T Bank, MassMutual, Wells Fargo, Zaffre Investments, and Spelman College. Additional individual investors are prominent figures from well-established venture capital firms, such as Scott Sandell of NEA and Jason Green of Emergence.
About 80% of Zeal's Fund I investors have re-invested for the second round, signaling their confidence in the firm's investment strategy. This group includes Synchrony Financial, Capricorn Investments, and Hampton University.
Investing With Impact
Zeal Capital Partners aims to invest in approximately 25 companies over the next four years, with a focus on leading or co-leading seed-stage rounds. Typical investment sizes are expected to range between $1 million and $2.3 million. Around half the fund is allocated for follow-on investments to support successful portfolio companies.
Initial investments have already been made in companies such as Seven Starling, a maternal mental health platform; Debbie, a fintech business that encourages financial wellness; and Rising Team, a provider of tools for leadership and team development.
Tackling Structural Challenges Through Innovation
Zeal Fund II prioritizes addressing systemic barriers in education, financial access, and healthcare, sectors that the firm views as critical challenges as well as high-growth opportunities.
Founder and Managing Partner, Nasir Qadree, argues that these sectors are now among the largest and most urgent market opportunities. Financial services account for over $4.5 trillion of the US GDP, while healthcare spending in the U.S. surpasses $4.9 trillion annually.
In addition, demand for upskilling and workforce innovation persists, especially as labor markets evolve. As technology continues to transform these sectors, with AI at the forefront, Qadree states that Zeal's investment approach is designed to scale impactful solutions. He added that the firm's growth signifies the maturity of its investment platform and their conviction that Inclusive InvestingTM defines market leadership.
Image credit: Abdullah Konte / WBJ
Founders of Zeal Capital Partners, led by Nasir Qadree, will leverage the newly raised $82 million from investors like Citi Impact Fund, M&T Bank, and individual investors such as Scott Sandell and Jason Green, to invest in up to 25 startups focusing on fintech, healthcare, and the future of learning and work. With a focus on systemic barriers in these sectors, Zeal aims to scale impactful solutions and lead market leadership through their Inclusive Investing approach.
