Corporations are increasingly active as limited partner on diversity-focused venture capital funds.
US-listed food manufacturer General Mills has committed $15m to two venture capital funds founded by women of colour.
Through its corporate venturing unit, 301 Inc., General Mills has backed Fearless Fund and Supply Change Capital, which back minority and women entrepreneurs.
Since a June 2021 reorganisation of General Mills’ corporate ventures under Doug Martin, about 80% of 301 Inc.’s investment dollars have gone to minority- or female-led food businesses, including Black-owned vegan burger startup Everything Legendary, according to news provider TMC.
“We experience first-hand the expertise and passion of the diverse and female founders within our 301 Inc. portfolio, and yet there is a systemic gap for minority food entrepreneurs looking for early-stage venture capital funding,” said Martin, chief brand and disruptive growth officer for General Mills, in the release. “We are excited to join forces with these amazing partners to uncover and accelerate more founders, at earlier stages.”
“Access to capital is one of the most prominent hurdles to women of color reaching their potential as founders, despite having an excellent track record in building successful businesses built on great ideas,” said Arian Simone, general partner and co-founder of Fearless Fund, in a statement.
“Noramay Cadena, co-founder and managing partner for Supply Change Capital, added: “As the multicultural consumer population in the US grows, we are focused on unlocking change in the venture ecosystem to infuse women and people of colour with the capital they need to shape our future food landscape.”
Separately, Leadout Capital, a firm that invests in “resilient” founders, has raised $57.7m for its second fund backed by LPs including Melinda French Gates’ Pivotal Ventures, JP Morgan Asset Management, Goldman Sachs’ Launch With GS, and Accolade Empowerment Fund.
Resilient founders, a term coined by Leadout Capital founder and managing partner Alison Rosenthal, refers to underrepresented or “non-obvious” founders, ie not white men.
In addition, the American Hospital Association (AHA), Henry Ford Health System and MultiCare Health System have backed SteelSky Ventures, a VC fund focusing on companies that improve women’s health.
Rick Pollack, president and CEO of AHA, which in January partnered with Jumpstart Nova to invest in Black-founded healthcare companies, in a statement said: “The AHA is excited about how this [SteelSky] fund can positively affect the double bottom-line of financial and social impact.”
SteelSky has invested in women’s telemedicine platform Twentyeight and Lark, a platform that helps with chronic care management.
