The biggest challenge Melissa Bradley, managing partner at 1863 Ventures, sees ahead for the D.C. business development nonprofit is to continue to meet the needs of a growing number of Black, brown and women business owners who have historically struggled to access capital.
In just the last 18 months, 1863 Ventures has invested more than $2 million in upstart firms across the country and has helped a number of D.C. entrepreneurs access additional capital through its administration of the city's Inclusive Innovation Equity Impact Fund. But a lack of access to capital remains a major obstacle for Black, Latino and women entrepreneurs, and with their numbers only growing, Bradley worries that opportunities could become even more scarce if the economy falls into recession.
“The challenge we have is the top of the funnel is just getting bigger and bigger,” Bradley said in an interview.
To better support these budding entrepreneurs — particularly graduates of its own accelerator program — 1863 Ventures is staffing up a community resource team, led by Community Director Wendy Maldonado D’Amico. By the end of the year, Bradley expects 1863 will add at least three more people to its staff of 10.
Beyond its hiring, the firm’s focus is also on building more partnerships. More robust relationships with investors, banks and community development financial institutions, or CDFIs, will help facilitate “a smooth pathway when people graduate" from the accelerator, Bradley said.
Add to that: 1863 Ventures has been doing its part by making investments through its own flagship fund.
1863 Venture Fund I LP has made 15 investments in 13 portfolio companies across the country since launching in late 2020. Through the fund, 1863 Ventures provides debt, equity and revenue-based financing for its portfolio firms.
Since making its first investment — in Memphis-based Medhaul, one of its accelerator alums that helps medical providers book rides for patients with mobility needs — the 1863 Venture Fund has doled out $2.01 million, according to its recently released impact report. Of that amount, 54% has been in equity, 38% in revenue-based-financing and 8% in debt.
The Kauffman and Surdna foundations were each among the fund's investors, 1863 said in its report, as were Bank of America, the Rockefeller Foundation, the Nathan Cummings Foundation, Sorenson Impact Foundation and debt investors Living Cities and the Consumer Health Foundation, now known as if.
1863 Ventures also manages D.C.’s Inclusive Innovation Equity Impact Fund, through which it awards D.C. business owners grants of between $30,000 and $150,000 each. Bradley’s nonprofit selects the recipients and administers the grants for the citywide program and provides mentorship for each of the businesses. The second round of recipients will be announced soon, Bradley said.
It also offers grants to businesses as part of its 3Rs program (Recover, Rebuild, Resilience), which was newly funded through a $1.2 million grant from the Rockefeller Foundation in 2021. That program offers $5,000 grants and three months of business coaching to 1,400 Black-owned businesses in 14 cities, including D.C., Baltimore, Chicago and Atlanta.
