A venture capital fund that invests in immigrant founders launched this week – the third social impact fund in as many years spearheaded by Columbus-based Venture Atlas.
The American Dream Fund, based in Chicago, aims to raise up to $10 million to invest in startups, a spokesman said.
Chicago's Migrate Ventures is Venture Atlas's new partner for this fund. Migrate founder Fiona McEntee, an immigration attorney and author, is the fund's CEO. The co-managing partners are Venture Atlas CEO Wolf Starr and Colleen Egan, an entrepreneur, investor and CEO of the Illinois Science and Technology Coalition.
McEntee, an immigrant from Ireland herself, said in a release she has advised "thousands" of immigrant entrepreneurs in 15 years practicing law.
"I’ve seen first-hand the incredible success they can have in the U.S. if they have access to the support they need like capital, immigration advice, and a network of experienced advisors," she said in the release. "The American Dream Fund will provide this critical support to these innovative entrepreneurs and ultimately, America will continue to benefit from their tremendous talent."
Venture Atlas's earlier funds are a partnership with Columbus VC firm Loud Capital: Pride Fund LLC, focused on LGBTQ+ founders, and Ohio Impact Fund LP, backing for-profit social enterprises in the state.
The network, formerly called Atlas Venture Partners, will partner with additional VC firms as it launches additional impact funds making the venture world accessible to overlooked and underrepresented populations.
The funds also are active with their startups, introducing potential clients or investors and advising on operations, which Starr has said is a way to maximize future returns.
Besides the capital, American Dream Fund can guide entrepreneurs through the dual complexities of the immigration system and operating a fledgling business, Starr said in the release.
"We empower immigrant entrepreneurs to drive their startups forward and unlock their full potential," he said. "Our commitment is to level the playing field."
The chairman of the fund's advisory group is Nick Rathod, founder of the State Innovation Exchange and former special assistant to the president and deputy director for intergovernmental affairs for President Barack Obama.
Immigrants make up 17% of the workforce, but have founded more than half of U.S. tech unicorns valued at $1 billion or more, according to the release. The companies generate billions in revenue and create millions of jobs.
"Despite this success, there continue to be barriers to accessing capital as well as all of the challenges created by archaic immigration laws and associated rhetoric," Rathod said in the release. "The American Dream Fund is designed to address these challenges."
