gener8tor and Forge North are excited to announce the first investments of the MSP Equity Fund. This is the first-known venture capital fund of funds in the country designed to invest across race, place and gender:
- Bread & Butter Ventures: A seed-stage venture capital firm based in Minneapolis that invests globally in food-tech, digital health and enterprise SaaS startups and leverages partnerships with Fortune 500 and large enterprises based in Minnesota to uniquely support companies post-investment;
- M25: An early-stage software-focused venture firm based in Chicago, investing solely in companies headquartered in the Midwest;
- Capitalize VC: A woman-led venture capital fund that invests in diverse founders. These founders are leading the next generation of innovation in commerce enablement, fintech and consumer brands;
- Tundra Ventures: An early-stage venture capital firm based in Minneapolis and San Francisco. The firm invests in the tech, health and consumer packaged goods sectors and;
- Brown Venture Group: A venture capital investment firm based in Saint Paul. The firm invests in overlooked and undervalued market investment segmentation within technology startups.
MSP Equity Fund
Powered by gener8tor and the GREATER MSP Partnership, the MSP Equity Fund invests in leading local and national venture-capital funds. The funds commit to investing a portion of their capital into high-growth startups led by Black, brown and women entrepreneurs that are headquartered in Minnesota or willing to relocate to the state. The MSP Equity Fund umbrella also includes the MSP Equity Direct Investment Fund. It is a seed fund that will invest directly in high-growth Black, brown and women-led startups in Minnesota. The MSP Equity Accelerator is an intensive 12-week, cohort-based accelerator program. It includes one-on-one coaching, mentorship-driven programming, more than one million dollars in deals and perks and more than 100 connections to the gener8tor network of mentors and investors.
Lead investors include Abōva, Allianz Life, Allina Health, Xcel Energy, Securian Financial and a Minnesota-based family foundation. gener8tor partner Al Cornish manages the fund. To date, the fund of funds has raised over ten million dollars.
“We are thrilled at the first five investments of the MSP Equity Fund,” said Al Cornish. “The MSP Equity Fund is focused on developing a portfolio of top diverse-asset-management firms from across the country. Each fund was carefully selected after an intensive due diligence process looking at a number of factors. The process included track record, management team, alignment with the mission and vision of the fund and willingness to engage in the Minnesota startup ecosystem.”
Minnesota startup ecosystem
“Our vision for the Greater Minneapolis–Saint Paul region is to lead the world in inclusive economic growth,” said Peter Frosch, CEO of the GREATER MSP Partnership. “The MSP Equity Fund is a bold move that will drive innovation in our economy and advance inclusion.”
The five investments represent the activation of one of the key capital allocation strategies of the MSP Equity Fund. This strategy aims to invest in local top diverse-asset-management firms and invest in national firms that will bring their resources, experience and risk capital to the Minnesota startup ecosystem.
The MSP Equity Fund strives to transform Minnesota into one of the top investment destinations for leading venture-capital fund managers and one of the top ecosystems for Black, brown, Indigenous and women entrepreneurs seeking to launch ventures at the leading edge of key industry sectors.
According to the Wall Street Journal, the MSP Equity Fund holds increased importance as the number of deals has dropped. This drop reduces the opportunities for new investors to get into venture.
The investment thesis of the MSP Equity Fund revolves around seizing the missed opportunity to invest in high-growth, leading Black-, brown- and women-led startups. Startups that have the potential to create lasting economic value and an outsized impact on the community.
To learn more about the MSP Equity Fund, read here.
About gener8tor
gener8tor is a global venture firm and accelerator network that supports startups, founders, workers, employers, artists and musicians across race, place and gender. gener8tor partners with companies, governments, universities and nonprofits to operate programs in more than 41 communities across 22 states and two countries. Fast Company named gener8tor one of the Best Workplaces for Innovators in 2021 and 2022. The International Trade Council recognized gener8tor as the Global Venture Capital Firm of the Year in 2022.
About Forge North
Forge North is part of the GREATER MSP Partnership. It is a coalition of 100+ partners advancing the Minneapolis–Saint Paul startup ecosystem. GREATER MSP is a partnership of more than 4,500 individuals from more than 300 leading businesses, universities, cities, counties and philanthropic organizations. The partners work together to accelerate the competitiveness and inclusive growth of the 15-county Minneapolis–Saint Paul regional economy.
About Bread & Butter Ventures
Bread & Butter Ventures is a seed stage venture firm based in the bread-and-butter state of Minnesota. The firm invests globally in foodtech, digital health and enterprise SaaS and has more than 70 companies across the portfolio. Bread & Butter Ventures leverages Minnesota and the region’s unparalleled access to strong corporate connections, commercial opportunities and industry expertise for the benefit of the firm’s founders.
About M25
M25 is an early-stage software-focused venture firm based in Chicago, investing solely in tech startups headquartered in the Midwest. Since launching in 2015, M25 has become the most active investor in the region. It is quickly becoming the preferred seed investor for the next generation of Midwest unicorns. Portfolio companies include Kin Insurance, Loop Returns, Astronomer, Summersalt, SteadyMD, Branch, Authenticx and more.
About Capitalize VC
Capitalize VC is a Chicago-based VC fund investing in pre-seed stage, diverse founders in the multi-trillion dollar, rapidly growing commerce industry at the intersection of commerce enablement, commerce infrastructure, fintech and consumer brands.
About Tundra VC
Tundra Ventures is an early-stage venture capital firm based in Minneapolis and San Francisco. The firm invests in the tech, health and consumer packaged goods sectors.
About Brown Venture Group
Launched in 2018, Brown Venture Group, LLC, is a venture capital firm exclusively for the overlooked and undervalued market investment segmentation within technology startups. Brown Venture Group is writing a new playbook for those interested in launching a minority-owned technology startup and those interested in investing in new technologies.
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