Local accelerator Mana Up launched its first venture capital fund, with plans to invest $6.3 million in Hawaii-based product startups, the company announced Tuesday.
Mana Up Capital is the largest venture fund in the state to invest exclusively in Hawaii-based companies, according to Mana Up co-founders Meli James and Brittany Heyd, who launched the fund.
"We always knew we wanted to raise a fund, but we felt it was important to stand up the accelerator first, and do it quickly so that we could start supporting local consumer brands companies in Hawaii," James told Pacific Business News. "Really learn ... and get a front-row seat of what the challenges are for these types of businesses, and really getting to know the entrepreneurs and the scope of the industry, especially for Hawaii."
Through Seed or Series A rounds, they intend to invest primarily in alumni companies of Mana Up. So far, they have announced two: Ko Hana Rum, which appeared in Mana Up's inaugural cohort; and Big Island Coffee Roasters, which appeared in Cohort 2.
"As we are now making investments, we have great relationships with these entrepreneurs," James said. "We have really built out the sales channels and other resources that are super important to really add fuel to the fire. We've always had great companies here in Hawaii, almost like our best-kept secrets, and now they're really able to start to scale because we have the resources, mentorship, and now, capital."
The amount of funding designated for each was unspecified but James told PBN that more selections will be forthcoming. Sixty-three companies have participated in the Mana Up portfolio to date.
According to Mana Up, Hawaii ranks 45th among states in venture capital availability. It also noted that, per a study by Axios, just 9.65% of decision-makers at U.S. venture capital firms are women.
James said the timing now was important because of a "tailwind" in regard to consumers interested in micro brands that create local opportunities. In Hawaii, the consumer packaged goods industry is responsible for 79,000 jobs, Mana Up said.
Kunia-based Ko Hana Rum recently added 220 acres of farmland for its sugarcane operations and will use the venture funding to further its growth trajectory and expand to the Mainland, per a Mana Up release.
Big Island Coffee Roasters will use the funding to expand its farmer relations program, digital marketing, and distribution both within and outside the state.
Another locally based accelerator, Elemental Excelerator, recently spun off a venture capital fund, Earthshot Ventures, to invest in climate and equity companies both locally and beyond.
