GRAND RAPIDS – New Community Transformation Fund and Michigan Capital Network, two Grand Rapids based venture capital investment organizations, announced a new affiliation agreement intended to accelerate momentum in the early and mid-stage investment sector for business owners and entrepreneurs of color in West Michigan.
Under this agreement, both organizations will remain as stand-alone entities and will continue to operate under their respective governance structures. MCN Ventures will now provide guidance, due diligence, compliance support and administrative services for NCTF’s investment initiatives.
“This new affiliation presents us with a tremendous opportunity to grow our impact with underserved entrepreneurs while also enhancing our regional economy,” said NCTF co-founder and executive chair, Birgit Klohs. “By working together, our two organizations can develop a more robust pipeline of investment opportunities for people of color who are searching to connect with VC investors.”
The New Community Transformation Fund was established in 2020. It invests $250,000 to $1.5 million in mid-stage businesses owned and operated by people of color or companies transitioning to new owners of color, in the financial technology, health care, advanced manufacturing and information technology industries. To date, NCTF has secured nearly $12 million in capital commitments and has invested in seven business entities.
“Five years ago, we set out to support business owners of color who needed capital to grow,” said NCTF co-founder and managing partner, Skot Welch. “By doing that, we help create generational wealth among new populations, which benefits our entire region. This new affiliation with MCN will allow us to interface our networks and our expertise in a way that will produce more opportunities for underserved entrepreneurs and investors.”
MCN is an investment fund management organization that oversees several venture capital funds and five Michigan angel investing groups including Grand Angels. The organization has more than 200 member-investors and totals $150 million in assets under management.
