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CMFG Ventures, the venture capital arm of CUNA Mutual Group, released a new report Tuesday detailing the impact of the Discovery Fund, which was created to invest in early-stage companies founded by women and minorities.
CMFG Ventures has made over $300 million worth of investments in 40 companies over the past six years, a CMFG news release said.
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Launched in 2021, the fund has invested $6.75 million in 17 companies and is on track to invest $15 million in its first three years. Those investments support companies led by women, BIPOC (Black, Indigenous and people of color) or LGBTQ (lesbian, gay, bisexual, transgender and queer) founders to help reduce the inequity in venture capital, the news release stated.
Venture capital-backed startups are predominantly male (89.3%) and white (71.6%). "Despite the increase in venture capital funding over the past few years, women and people of color continue to be at a disadvantage," according to CMFG's statement.
CMFG said the Discovery Fund "is closing the equity gap and empowering underrepresented founders." Of the Discovery Fund's investments to-date, 36% were companies founded by women (compared to 2% in the industry) and 57% were BIPOC founders (compared to 2% in the industry).
"Our mission is to find companies that are making products and services that are actually improving the lives and financial health of everyday Americans, particularly low and moderate-income consumers and those who have been underserved by the traditional financial system," Elizabeth McCluskey, director of the Discovery Fund, said.
The report also included case studies from companies in the Discovery Fund's portfolio. Among them were Listo!, a San Jose, Calif., company that sells insurance and loans. It was founded in 2014 by Sam Ulloa, its CEO.
"We believe in financial inclusion, the civil rights movement of our generation, the path to financial prosperity and the path to a fair and equitable America," Ulloa said. "We partner with credit unions, financial institutions and insurance carriers to provide more inclusive access to affordable financial services for Latinx and marginalized communities."
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Jim DuPlessis
Jim covers economic data trends emerging for credit unions, as well as branch news and dividends.
