Colorado’s first black- and black-women-owned venture capital firm recently partnered with the state to expand access to capital for diverse entrepreneurs.
The New Community Transformation Fund – Denver received $5 million from the Colorado Venture Capital Corporation in the fund’s first final round.
Launched in July, the fund aims to invest in early- to mid-sized businesses owned by entrepreneurs of color.
“We understand that large emerging market ventures recognize undervalued, underleveraged, founders of color,” said co-founder and CEO Daniel Schutz.
He described the fund’s vision as one of a “fairer economy” and its team is committed to “making venture capital available to founders who have barriers to financing.” Its mission also includes generating above-market returns.
Last year, Colorado ranked seventh in the U.S. in terms of the total number of venture capital deals and total capital invested in those deals, the Colorado Department of Economic Development and International Trade reports.
“In 2021, venture capital in Colorado broke previous records, and we want to see more Coloradans benefit from this growth,” said Thea Chase, Chairman of the Board of Directors of the Venture Capital Organization.
Colorado has 674,741 small businesses with 1.2 million employees, according to the 2021 State Small Business Profile by the U.S. Small Business Administration’s Office of Advocacy. Racial minorities held 7.4 percent of these jobs.
The New Community Transformation Fund – Denver is looking for founders located in – or willing to relocate to – Colorado who want to build a diverse workforce and economy.
“As an entrepreneur, I know what it’s like to build something from the ground up, so I’m proud to support this exciting partnership of entrepreneurship and innovation in Colorado,” said Gov. Jared Pulis on Oct. 27, when the partnership was announced. he does.” Announced. We continue to support entrepreneurs to grow and diversify Colorado’s strong economy as we build an economy that works for everyone.
Limited partner investors in the Denver-based fund include Bank of America and the Colorado Housing and Finance Authority. Its first close was announced on October 13, with Bank of America among five early investors, committing a total of $10.6 million.
“By accelerating the flow of capital to funds that invest in African-American, Hispanic-Latino, other minority and women-represented businesses, we can help level the playing field and create more jobs and wealth,” he said. Raju Patel, president of Bank of America Colorado.
New Community Transformation Fund – Denver aims to raise up to $50 million by next year.
“Smart investing means investing in founders of color,” Shoots said.
