AAA Corporates join New Community Transformation Fund

Corporates join New Community Transformation Fund

US-based non-profit economic development organisation The Right Place has raised capital from investors including healthcare provider Spectrum Health System, Mercantile Bank and Bank of America for a diversity-focused venture capital fund, MiBiz reported yesterday.

Bank of America and consumer rights advocate Consumers Energy Foundation each provided $200,000 to launch New Community Transformation Fund in January this year. Spectrum Health unit Spectrum Health Ventures and Mercantile Bank have since added $1m each.

New Community Transformation will invest in businesses with owners from ethnic minority groups that are based in west Michigan or who are willing to relocate to the area.

The fund will initially target $5m from investors based in western Michigan as it works towards a $25m final close by exploring prospective contributions across the rest of the United States.

Startups with a CEO from a racial minority secured only $109m of the $2.1bn of the VC investment in the Michigan area during 2019, according to research from trade body Michigan Venture Capital Association.

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