Cherryrock Capital: Stacy Brown-Philpot's $20 Million Fund Doubles Down on Overlooked Founders in Shifting VC Landscape

Cherryrock Capital, founded by seasoned tech executive Stacy Brown-Philpot, is carving out a distinct niche in the venture capital landscape. The firm's strategy centers on providing crucial Series A and B funding to software companies led by founders who are often overlooked by mainstream venture capital firms. Brown-Philpot, a former TaskRabbit CEO and Google veteran, launched Cherryrock in early 2024 to address what she identified as a persistent gap: access to capital for underrepresented entrepreneurs at a critical growth phase.

Brown-Philpot's conviction stems from her experience on the investment committee for SoftBank's Opportunity Fund. Despite SoftBank's eventual divestment from the diversity-focused fund, Brown-Philpot recognized the immense pool of talented founders being underserved by traditional venture capital. Cherryrock's debut fund, closing in February 2025, has already attracted a pipeline of over 2,000 companies, signaling a significant demand for this targeted investment approach.

Cherryrock plans to make 12 to 15 concentrated investments from its initial fund, a strategy that contrasts sharply with seed funds that make numerous smaller bets and mega-funds writing nine-figure checks. This deliberate pace allows Brown-Philpot and her team, including co-founder Saydeah Howard (formerly of IVP), to conduct thorough due diligence and provide hands-on support to portfolio companies. The firm's focus on "underinvested" founders reflects a conscious decision to back entrepreneurs who may not fit the stereotypical Silicon Valley profile.

Despite the current political climate surrounding DEI initiatives, Brown-Philpot remains resolute in her commitment. Cherryrock's limited partners include major financial institutions like JPMorgan and Bank of America, as well as Goldman Sachs Asset Management, MassMutual, Top Tier Capital Partners, and Melinda Gates's Pivotal Ventures, all of whom expect a strong return on investment. A new California law requiring VC firms with a California nexus to report demographic data on their portfolio companies further solidifies Cherryrock's position. The law, focused on transparency rather than quotas, aligns perfectly with Cherryrock's existing practices.

Cherryrock's portfolio already includes promising companies like Coactive AI, which provides multimodal AI infrastructure for the media and entertainment industry, and Vitable Health, which offers on-demand healthcare to employers and hourly workers. These investments reflect Brown-Philpot's understanding of emerging trends and her ability to identify founders addressing real-world problems. Brown-Philpot also brings a wealth of experience from her board positions at HP, StockX, and Stanford University, providing valuable insights into both enterprise buyers and the next generation of founders.

While many venture capitalists overemphasize IPOs, Brown-Philpot takes a pragmatic approach. She believes that acquisitions are the more likely outcome for most companies and focuses on creating lasting value through strategic partnerships. As Cherryrock actively deploys capital in 2026, the firm will seek Series A and B companies with proven product-market fit at scale, backing founders who demonstrate the ability to execute their visions. Cherryrock is not just about diversity; it's about identifying and investing in exceptional founders, regardless of their background or location. Brown-Philpot's Detroit roots instill a resilient attitude: 'Hard things are hard, but we know how to do hard things.'