Zeal Capital Secures $82M for Fund II, Focusing on Fintech and Healthcare

Zeal Capital Partners announced the close of its $82 million Fund II. The fund will invest in early-stage companies across fintech, healthcare, and future of work sectors, mirroring the focus of its first fund.

Key limited partners include:

  • Citi Impact Fund
  • M&T Bank
  • Wells Fargo
  • Spelman College

Zeal Capital plans to invest in at least 25 companies, with initial check sizes ranging from $1 million to $2.3 million. Half of the fund is reserved for follow-on investments in promising portfolio companies. Fund II has already invested in five companies, including maternal health platform Seven Starling and fintech company Debbie.

Navigating a Challenging Funding Landscape

Nasir Qadree, founder and managing partner of Zeal, acknowledged the challenging fundraising environment due to macroeconomic uncertainty and tighter allocation windows.

“But these headwinds also sharpened our strategy and reaffirmed the strength of our approach. I’m proud to share that over 80% of our limited partners from Zeal Fund I continued with us into Fund II, a signal of deep conviction in our ability to consistently back category-defining companies.”

Zeal Capital's Fund I closed at $62.1 million in 2021. The firm has invested in 40 companies since its founding in 2019.

Continued Investor Interest in Diverse-Led Funds

Zeal Capital joins a growing number of Black-led funds that have recently secured significant investments. This demonstrates continued investor appetite for funds focused on diverse founders and underrepresented communities.

Recent examples include:

  • Slauson & Co.'s $100 million Fund II announced in September 2024.
  • Illumen Capital's $32.75 million fund announced in November 2024.
  • Symphonic Capital's $13.5 million inaugural fund announced in April 2025.
  • Cherryrock Capital's $172 million Fund I announced in February 2025.

These funds, some with general missions and others explicitly targeting underrepresented communities, demonstrate persistent interest in diversity and inclusion within the venture capital landscape.