Discover if this is a suitable investor for your startup. If they are we'll make a warm introduction for free. Otherwise, we'll connect you with matching investors.
Innovate Capital Growth Fund is an SBA-licensed Small Business Investment Company (SBIC) based in Philadelphia, Pennsylvania. Launched in April 2022, the fund focuses on investing growth equity capital in diverse lower middle market businesses, particularly those owned by minorities and women. The fund aims to connect institutions with these businesses to facilitate growth and address capital needs, advocating for equitable market conditions.
Currently, Innovate Capital Growth Fund manages approximately $50 million in assets under management (AUM) and has made investments in four portfolio companies. The fund is structured to provide leverage from the SBA on top of private capital, enhancing its ability to support its portfolio. Notable limited partners include the TD Charitable Foundation, which committed $5 million in November 2023.
Innovate Capital Growth Fund operates primarily in the Mid-Atlantic region, with a strong emphasis on Philadelphia as its hub. The fund's mission aligns with its commitment to supporting diverse businesses, and it is affiliated with The Enterprise Center, a prominent economic development organization in Philadelphia.
The investment strategy of Innovate Capital Growth Fund centers on providing growth equity capital to diverse lower middle market businesses. The fund targets companies in various sectors, including biotech, healthcare, consumer, industrial, fintech, edtech, commerce, energy, climate, and proptech. It invests at stages ranging from Seed+ (Extension) to Series A and Growth Equity, focusing on businesses that demonstrate potential for significant growth.
Innovate Capital Growth Fund emphasizes operational expertise and access to strategic networks as key components of its investment approach. The fund seeks to bridge capital needs at various stages of business growth, particularly for minority and women-owned enterprises. This focus on operational support allows portfolio companies to implement effective sales and operational strategies, enhancing their chances of success in competitive markets.
Innovate Capital Growth Fund has invested in four notable companies:
These companies reflect the fund's commitment to supporting diverse businesses across multiple sectors, particularly those that contribute to community development and economic growth.
Della Clark - Managing Partner. Della leads Innovate Capital Growth Fund and is also the head of The Enterprise Center. She has extensive experience in economic development and has been instrumental in supporting minority-owned businesses.
Bob Palmer - Managing Partner. Bob has over 30 years of experience in banking and private equity, previously serving as Managing Director at CMS Mezzanine. His expertise lies in financial structuring and investment management.
Blessy Thomas - Managing Partner. Blessy brings a background in growth strategies with major corporations, focusing on scaling businesses and operational efficiency.
To pitch to Innovate Capital Growth Fund, founders should use the preferred channel of the fund's website or email. A comprehensive pitch deck is essential, including details about the business model, market opportunity, and team. The fund encourages warm introductions but is open to direct submissions as well.
Response times may vary, but founders can expect to hear back within a few weeks after submission. It is advisable to follow up if no response is received within that timeframe.
In November 2023, Innovate Capital Growth Fund announced a $5 million investment from the TD Charitable Foundation, marking a significant milestone in its fundraising efforts. This investment supports the fund's mission to provide growth equity capital to diverse lower middle market businesses.
Since its launch in April 2022, the fund has been actively building its portfolio, currently comprising four companies. The fund continues to seek additional investments to reach its target fund size of $50 million.
What are the investment criteria for Innovate Capital Growth Fund?
The fund focuses on diverse lower middle market businesses, particularly those owned by minorities and women. It invests in various sectors, including biotech, healthcare, fintech, and more, at stages ranging from Seed+ to Growth Equity.
How can I apply or pitch to Innovate Capital Growth Fund?
Founders can pitch their ideas through the fund's website at innovatecapitalgrowth.com or via email at info@innovatecapitalgrowth.com. A detailed pitch deck should be included, outlining the business model, market opportunity, and team.
What makes Innovate Capital Growth Fund different from other investors?
The fund emphasizes operational expertise and access to strategic networks, which helps portfolio companies implement effective sales and operational strategies. It also advocates for equitable market conditions for minority and women-owned enterprises.
What is the geographic scope of the fund?
Innovate Capital Growth Fund primarily focuses on the Mid-Atlantic region, with a strong presence in Philadelphia and surrounding areas.
What is the typical check size for investments?
The fund does not publicly disclose specific check sizes, but it invests in growth equity, which typically involves significant capital to support business expansion.
What is the fund size and how many companies are in the portfolio?
Innovate Capital Growth Fund has a target fund size of $50 million and currently has four companies in its portfolio.
All trademarks, logos and brand names are the property of their respective owners. All company, product and service names used in this website are for identification purposes only. Use of these names, trademarks, and brands does not imply endorsement.