In the fast-paced world of Silicon Valley, where mega-rounds and AI deals dominate headlines, Stacy Brown-Philpot is taking a different approach with Cherryrock Capital. Instead of chasing after the latest trends, she is focusing on providing smaller Series A and B checks to founders that larger firms often overlook.
A seasoned veteran with experience at TaskRabbit and Google, Brown-Philpot identified a gap in the market for “underinvested entrepreneurs” who are building software companies at a critical growth stage. This led her to launch Cherryrock a year ago, fulfilling her original ambition of becoming a venture capitalist.
Having previously served on the investment committee for the SoftBank Opportunity Fund, Brown-Philpot witnessed firsthand the abundance of talented but overlooked founders in the industry. Despite SoftBank divesting from the diversity-focused initiative, she remained committed to her mission and established her own fund.
Cherryrock’s investment strategy is focused on making 12 to 15 carefully selected investments from its debut fund, in contrast to the scattergun approach of seed funds or the massive checks written by larger firms. Brown-Philpot and her team have taken a measured approach, backing just five companies so far, with a goal of supporting founders who may not fit the traditional Silicon Valley mold.
With a diverse group of investors including JPMorgan, Bank of America, and Goldman Sachs Asset Management, Cherryrock is well-positioned to navigate the shifting landscape of diversity and inclusion in the industry. Brown-Philpot remains unfazed by the current political environment, emphasizing the importance of generating returns for investors while supporting underrepresented founders.
As California introduces a new diversity reporting law for VC firms, Cherryrock’s commitment to tracking and prioritizing investments in diverse founders aligns seamlessly with the transparency requirements. Brown-Philpot views compliance as “table stakes” and believes that measuring diversity and inclusion efforts is key to achieving meaningful progress.
Drawing on her experience across various institutions and boards, Brown-Philpot brings a unique perspective to her investments. Her portfolio includes companies like Coactive AI and Vitable Health, led by founders with diverse backgrounds and innovative solutions to industry challenges.
Looking ahead to 2026, Brown-Philpot’s main focus is on actively deploying capital to support Series A and B companies that have achieved product-market fit at scale. While the venture capital landscape debates the future of diversity initiatives, she remains dedicated to finding exceptional founders and creating lasting value through strategic investments.
For Brown-Philpot, the road ahead may be challenging, but her Detroit roots have taught her that tackling difficult tasks is part of the journey. With Cherryrock Capital, she is paving the way for underinvested entrepreneurs to thrive in an industry that is constantly evolving.