Venture capital investment organizations announce affiliation

People

Dec 11

Skot Welch, Co-founder and Managing Partner, New Community Transformation Fund

New Community Transformation Fund (NCTF) and Michigan Capital Network (MCN), 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 Birgit Klohs, Co-founder and Executive Chair, New Community Transformation Fund. “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 Skot Welch, Co-founder and Managing Partner, New Community Transformation Fund. “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.

“The idea of collaborating with the New Community Transformation Fund has been under discussion for several months, but the fact is we thought it made sense for both organizations from the very beginning of this process,” said Paul D’Amato, CEO and Managing Director, Michigan Capital Network . “We share their goal of creating access to capital for people of color because we know that business growth, entrepreneurship and capital investment strengthens our economy and makes our state more attractive to other businesses looking to relocate. Birgit Klohs and the NCTF team set out to change the investment landscape and we welcome the opportunity to partner with them on that mission.”

Since being established, NCTF has secured capital commitments from numerous individuals and organizations that operate in West Michigan including: John Kennedy, Bank of America, the City of Grand Rapids, Consumers Energy Foundation, Frey Foundation, Gentex Corp., the Meijer Foundation, Horizon Bank, ITC Holdings Corp., Mercantile Bank, Rockford Construction Co., Corewell Health Ventures, Steelcase Foundation, Wege Foundation, Aaron Jonker, Brooks Capital Management, 42 North Partners, and Wolverine Gas & Oil Co.

“Michigan Capital Network is a respected fund management firm that brings a new level of expertise and scalability to our investment vision,” said Steve Jandernoa, Investment Committee Chair, New Community Transformation Fund “Our investors have taken intentional steps to improve access to capital for people of color, while also strengthening our local economy and our community as a whole. This new affiliation is a strategic step in advancing those goals.”