GR-based VC fund targeting minority-owned companies raises $8.5M in first year
The venture capital fund formed a year ago in Grand Rapids to invest in minority-owned businesses has netted $8.5 million in commitments from investors and aims to hit $10 million this year.
The amount raised to date far surpassed the $5 million first-year fundraising goal for the New Community Transformation Fund LP. Once the venture capital fund hits $10 million in committed investors, it will begin pursuing investments in growing, second-stage companies owned by people of color that are in need of growth capital. The fund also will invest in companies that are going through transition as owners retire and a person of color is acquiring the business.
Additional investments came in during the year from Autocam Medical, DTE Energy, Gentex Corp., Greenville Partners/Meijer Inc., Horizon Bank, Rockford Construction Co. Inc., Wolverine Building Group and Wolverine Gas & Oil Co.
The venture capital fund ultimately hopes to raise $25 million by the end of 2021.