In partnership with a Minneapolis-area economic development group and with the backing of major Minnesota companies, Wisconsin-based gener8tor Management LLC is launching a $50 million venture capital fund of funds that will invest in at least 10 venture capital firms around the country, according to a Wednesday announcement.
Those firms will then commit to investing all of that back into Minnesota-based startups with minority and women founders.
Along with gener8tor, the effort is being led by Forge North — a startup initiative out of the Minneapolis-Saint Paul Regional Economic Development Partnership, known as Greater MSP. More institutions are expected to invest before the fund closes later in the year.
Known as the MSP Equity Fund, the fund is launching with a $10 million investment from Allianz Life Insurance Co. of North America and seven-figure investments from Allina Health System and Xcel Energy Services Inc., all of which are based in Minneapolis.
While U.S. venture capital funding is at an all-time high, last year Black entrepreneurs received 1.2% of VC capital and women-led startups received 2%, according to Pitchbook data. Latino founders received 2.1% of funding in 2021, according to Crunchbase.
“Our balance sheets should reflect the demographics of the communities we serve,” gener8tor co-founder Troy Vosseller said in a statement.
No specific venture capital firms have been identified yet, but MSP Equity Fund general partner Al Cornish said the organization is in discussion with local and national firms.
"What we're looking for is funds that have a very strong cultural fit with the goals and mission of the MSP Equity Fund, and also strong leadership and a strong track record of returns, and really investing in Black, brown and women-led startups," Cornish said.
Founded in Wisconsin in 2012, gener8tor is a startup accelerator operator and venture capital firm with offices in Milwaukee, Madison and Minneapolis.
