Inclusive Investment Firm Grows To $186M With Close Of $82M Fund

Zeal Capital Partners has closed its second fund at $82 million, tripling its assets under management (AUM) to $186 million in just five years.

The Washington, DC-based firm plans to invest the new capital in early-stage startups across fintech, healthcare, and the future of learning and work.

A Broader, Stronger Investor Base

Zeal’s investor base has grown significantly with this latest fund. New limited partners include Citi, MassMutual, Wells Fargo, M&T Bank, Zaffre Investments, and Spelman College, according to a press release shared with POCIT. Individual investors also include notable figures from established VC firms, such as Scott Sandell of NEA and Jason Green of Emergence.

Notably, nearly 80% of Zeal’s Fund I investors returned for the second fund. That includes organizations like Synchrony Financial, Capricorn Investments, and Hampton University, signaling ongoing confidence in the firm’s investment strategy.

Investing With Impact

With Fund II, Zeal plans to back around 25 companies over the next four years. The firm will lead or co-lead seed-stage rounds, with typical check sizes ranging from $1 million to $2.3 million. About half the fund is reserved for follow-on investments to continue supporting successful portfolio companies.

The fund has already made initial investments in Seven Starling, a maternal mental health platform; Debbie, a fintech company focused on incentivizing financial wellness; and Rising Team, which builds tools for leadership and team development.

Read: Zeal Capital’s Stefanie Thomas-Martin Becomes Partner After Leading $50M Fund

Tackling Structural Challenges Through Innovation

Zeal Fund II centers on addressing systemic gaps in education, financial access, and healthcare, areas the firm sees as both critical challenges and high-growth opportunities.

“The systems-level challenges that have long felt insurmountable,” said Founder and Managing Partner Nasir Qadree, arguing that these sectors are now among the largest and most urgent market opportunities.

Zeal notes that financial services account for over $4.5 trillion of the US GDP, and healthcare spending in the U.S. exceeds $4.9 trillion annually. Meanwhile, demand for upskilling and workforce innovation continues to grow, especially as labor markets evolve.

As technology, particularly AI, continues to reshape these sectors, Qadree said Zeal’s strategy is designed to scale impactful solutions. “Our growth reflects the maturity of our investment platform and our firm’s enduring belief that Inclusive Investing™ defines market leadership,” he added.

Image credit: Abdullah Konte / WBJ