Black Angel Tech Fund announced its first portfolio acquisition today with Patreon’s acquisition of Kit - a startup with a merchandise logistics backend allowing creators to seamlessly manage their product funnel. Patreon acquiring Kit thwarts the advances of Youtube and Facebook into the subscription patronage model. According to TechCrunch, the Patreon platform has 2 million patrons backing 100,000 creators.
Kit launched in 2016 with the goal of creating a new way for creators to get paid for their creativity and expertise. A lofty mission, with a clear target audience of YouTubers, bloggers, twitch streamers, etc. trying to find ways to fund their passions. Black Angel Tech Fund were early investors in Kit.
This isn’t just another tech acquisition. It’s a major move. Here’s why:
The acquisition propels the relevancy of Black VCs within the Black (and Brown) tech ecosystem. Black Angel Tech Fund, co-founded in 2015 by Kwame Anku and a group of Stanford University Black Alumni, exists to be the autocorrect Silicon Valley clearly needs, i.e. investing early in globally scalable, disruptive tech companies that have black tech founders at the helm. In a space where Black VC funds are largely under resourced and Black tech founders are overwhelmingly overlooked, this acquisition is a sign that change is afoot.
The co-founder of Kit is Camille Hearst, a veteran of Google, YouTube, and Apple who also happens to be a black woman. By 2017, Camille was one of a handful of black tech women to have raised over $2M ($2.5M to be exact) in VC and angel funding. Early investors in Kit included Social Capital, Expa, #Angels, Precursor and Stanford’s StartX, as well as angels like Ellen Pao and Slack’s April Underwood.
Financial terms of the deal have not been disclosed, however, according to TechCrunch ninety percent of Kit’s New York team will relocate to the Bay area to join the Patreon team by 2019.
For more information, check out the announcement per Kit’s blog.