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The MSP Equity Fund is a pioneering fund-of-funds established in March 2022 as a project of Forge North, powered by gener8tor and the Greater MSP Partnership. This fund aims to attract leading venture capital firms to invest in high-growth startups located in Minnesota. The MSP Equity Fund is notable for being the first known VC fund of funds in the United States that specifically targets investments across race, place, and gender. Its mission is to increase the investable capital available to overlooked and underfunded entrepreneurs, particularly those from underrepresented groups.
Currently, the MSP Equity Fund has a target fund size of $50 million and has reported a first close of over $10 million as of February 2024. The fund operates by investing in over 10 venture capital funds across various sectors, including healthcare, food-agtech, SaaS, fintech, and consumer. The fund's commitment to supporting underrepresented entrepreneurs is reflected in its strategy to ensure that 100% of its investment dollars are directed towards these groups. The MSP Equity Fund is managed by a team that includes Al Cornish, a general partner with a background in public policy and government affairs.
The MSP Equity Fund operates as a fund of funds, strategically investing in over 10 venture capital funds that focus on diverse sectors such as healthcare, food-agtech, SaaS, fintech, and consumer. The fund's investment strategy is centered on supporting underrepresented and overlooked entrepreneurs, ensuring that 100% of its investment dollars are allocated to these groups. This commitment is particularly aimed at addressing the underinvestment in high-growth startups led by Black, Brown, Indigenous, and women entrepreneurs in Minnesota.
In addition to investing in venture capital funds, the MSP Equity Fund also runs an accelerator program that invests $100,000 in five startups per cohort. This program not only provides capital but also offers mentorship and resources to help startups scale effectively. The fund seeks to partner with local and regional fund managers, diverse and emerging fund managers, and revenue-based financing funds, thereby enhancing the entrepreneurial landscape in Minnesota.
The MSP Equity Fund has made initial investments in four venture capital fund managers, which include:
Additionally, the MSP Equity Fund's accelerator program invests $100,000 in each of five startups per cohort. Notable companies that have participated in this program include:
Al Cornish - General Partner. Al Cornish has a background in public policy and government affairs, having previously managed these areas for Target Corporation in the Midwest. He brings expertise in venture capital and a commitment to supporting underrepresented entrepreneurs through the MSP Equity Fund.
To pitch to the MSP Equity Fund, founders should reach out via email at al@gener8tor.com. It is advisable to include a detailed deck that outlines the business model, market opportunity, and team background. The fund prefers pitches that clearly articulate how the startup aligns with its mission of supporting underrepresented entrepreneurs.
Response times may vary, but founders can expect to hear back within a few weeks. Warm introductions are encouraged, especially from individuals within the fund's network or those who can vouch for the startup's potential.
As of February 2024, the MSP Equity Fund reported a first close amount of over $10 million, indicating early momentum in attracting capital. This milestone is significant as it reflects the fund's commitment to investing in diverse fund managers and supporting underrepresented founders.
In February 2024, the fund announced its initial investments into four VC fund managers: Bread & Butter Ventures, M25, Capitalize VC, and Tundra Ventures. These investments align with the fund's mission to enhance the entrepreneurial landscape in Minnesota.
What are the investment criteria for the MSP Equity Fund?
The MSP Equity Fund focuses on investing in venture capital funds that support underrepresented entrepreneurs, particularly those led by Black, Brown, Indigenous, and women founders. The fund ensures that 100% of its investment dollars are directed towards these groups.
How can startups apply or pitch to the MSP Equity Fund?
Startups interested in applying for funding can reach out via email at al@gener8tor.com. The fund also has a dedicated website where additional information can be found.
What makes the MSP Equity Fund different from other funds?
This fund is the first known VC fund of funds in the United States specifically designed to invest across race, place, and gender. Its unique focus on underrepresented entrepreneurs sets it apart from traditional venture capital funds.
What is the geographic scope of the MSP Equity Fund?
The MSP Equity Fund primarily focuses on startups located in Minnesota, although it also invests in venture capital funds that may operate in other regions, particularly those that support underrepresented founders.
What is the fund size and check size for investments?
The MSP Equity Fund has a target size of $50 million, with a first close amount of over $10 million reported as of February 2024. The accelerator program invests $100,000 in each startup per cohort.
What kind of post-investment involvement does the MSP Equity Fund have?
The fund provides significant value to its portfolio companies by offering not only capital but also mentorship and access to a robust network of local and national venture capital firms. This support helps entrepreneurs scale their businesses effectively.
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