US-based Massachusetts Mutual Life Insurance has launched a $5m corporate venturing fund that will invest in startups based in its home city of Springfield, Massachusetts.
In addition to the Springfield Venture Fund (SVF), MassMutual will also invest more than $1.5 million over the next three years in a new startup accelerator called Valley Venture Mentors (VVM).
Operating as a non-profit organisation that will provide mentoring and networking services for local startups, VVM will also invest more than $200,000 in the form of grants at the end of the four-month programme.
Tim Corbett, vice president and chief investment officer of MassMutual said: “The Springfield Venture Fund will enhance the city’s already strong entrepreneurial environment for startups, as well as help entrepreneurs grow their business, create jobs and generate additional tax revenue for the city.”
Scot Foster, president of VVM said: “By providing startups with greater access to capital, educational opportunities and valuable mentors, SVF and VVM are a winning combination in helping entrepreneurs achieve their dreams while drawing valuable resources and businesses to the Springfield area,”
SVF is expected to start taking proposals this fall while the VVM Accelerator will be accepting applications in August and expects to launch in early 2015.