Symphonic Capital has launched its inaugural fund targeting overlooked founders in fintech and health care.

Symphonic Capital’s Inception

Sydney Thomas, who always displayed an “entrepreneurial spirit,” founded the venture capital (VC) firm in 2022. Having already dedicated years to being a serial investor, her work in venture capital began in 2016. It was during that time that she observed a common pattern: Many firms placed broad bets on numerous founders, accepting that most would fail in hopes that a few would yield outsized returns. However, she believed it was possible to have a more refined approach that would put more early-staged founders in a better position.

“While it is still incredibly risky to work in early stage, a way to actually de-risk your investment is to have a much more structured and focused support strategy with those companies that increases the likelihood that they graduate from pre-seed to seed, and increases the likelihood that they graduate from seed to Series A. And I just wasn’t seeing folks do that to the extent that I wanted to,” Thomas said during an interview with AFROTECH™.

Inaugural Fund

That’s why she took matters into her own hands and launched Symphonic Capital, which has now closed its first fund at $13.5 million. Shruti Shah also serves as a partner of the firm, carrying experience as an educator in Baltimore, MD, and as a co-founder of Combined with Thomas’ background in the public sector, their diverse experiences are a strong foundation for championing the firm and successfully launching its first fund.

“We have been immersed in these communities and understand these problems so that when we see founders who are solving problems in this space, we’re able to see something that a lot of other investors miss because they haven’t had that experience or expertise,” Thomas explained.

The firm’s limited partners (LPs) include Bank of America, Illumen Capital, Uplifting Capital, Mary Reynolds Babcock Foundation, and Known Financial. It has also received financial support from founders Wayee Chu of REACH Capital, Laura Spiekerman of Alloy, David Whelan of Town Hall Ventures, and Michael Siebel of YC. The limited partners and founders onboarded were intentional. The goal is to seek out those with a “diverse set of lived experiences” who are driven by solving real-world problems impacting the majority of the population, its website states.

“When I was looking for LPs, I was looking for folks who actually could offer me some strategic advice, support, and feedback. And so I needed folks who had been around the block a few times, and I’m so grateful that we ended up with the LP base that we have, which is very experienced. I’m able to leverage that expertise as we grow because this is fund one. So, it very much is a startup fund, and I need support just as much as our founders need support. So very grateful to have it from my awesome LP base,” she expressed.

Portfolio Companies

Thomas began raising in 2022, and the fund had been deploying capital over time. It’s portfolio companies includes Bump (financial tool); Flourish Care (offers doulas, wellness programs, and community care for pregnant woman); and Remynt (debt and credit recovery company).

While the fund primarily focuses on fintech and health care, Thomas notes that the firm is also tethered to companies developing tangible products and generating meaningful revenue.

North Star

At its core, the firm’s guiding mission is to help close the racial wealth gap and reduce health disparities across the United States.

“We will most likely not be successful on that in my lifetime. This is the reason why it’s Symphonic Capital, not Sydney Thomas Capital. This is something that is a legacy of mine that I want to see continue to grow and evolve over time and outlast me in my time in venture,” Thomas reflected.