A former employee who used to work on the investment team and asked to remain anonymous for fear of retaliation told TechCrunch that this fund would have been the firm’s first and that Colorful has been struggling to raise it since it launched two years ago. At that time, it was trying to raise at least $10 million to do 13 pre-seed deals and 12 seed deals, with check sizes starting at $300,000. The idea was to co-lead deals and cut follow-on checks, too, the employee, who was familiar with the matter, said. PitchBook shows that since its launch, the firm made four investments, including into clothing company Springrose and health tech Mate Fertility.
“It’s unfortunate,” the former employee said.