PayPal is one of 99 limited partners to have committed to the debut fund for the black entrepreneur-focused venture capital firm.

Collab Capital, a US-based venture capital firm focused on black entrepreneur-led startups, has closed its debut fund at $50m with a commitment from digital payment services provider PayPal.

Collab Capital Fund I has been backed by 99 unnamed limited partners according to a Medium post by the firm. It was founded in 2018 and began fundraising for the vehicle the following year.

PayPal announced last week it had made a commitment to Collab’s fund as part of a wider fund investment initiative focused on black and Latinx-led venture capital funds.

The fund is focused on early-stage companies run by black founders in US cities such as Atlanta, Washington DC, Houston, Detroit, St Louis and New Orleans. Collab has a particular interest in startups using technology to address issues such as the future of work, learning and healthcare.

Collab said it plans to back 50 companies over the next three to five years, investing between $500,000 and $750,000 per deal. It has earmarked 30% of the fund’s capital for follow-on investments of up to $2m.

The firm has already tapped the vehicle to complete investments including women’s waterproof hat brand Hairbrella and Music Tech Works, the operator of a music copyright research platform.