Denver City Wire

Partnership aims to disrupt the systemic economic impacts on BIPOC+ communities through programmatic support and investment for business growth

DENVER - Denver Economic Development & Opportunity (DEDO) recently announced its partnership with the New Community Transformation Fund-Denver (NCTF-D) to expand access to venture capital for diverse-owned Denver startups and early-stage companies. DEDO has signed a $15 million contract with NCTF-D, a venture capital fund that invests in early stage BIPOC+ founders who have been overlooked and undervalued but are now seen as the new high-growth opportunity.

DEDO’s investment in NCTF-D is funded through the City and County of Denver’s Herman Malone Fund, a special revenue fund derived utilizing one percent retail marijuana sales tax revenue. The fund was created in 2022 by Mayor Michael B. Hancock. NCTF-D is the first Colorado-based venture capital firm that is Black-owned and Black woman-led. With DEDO’s investment and matching support from other notable investors, NCTF-D completed its historic first close in October 2022.

"Historic, systemic inequities and a lack of access to capital have hindered the growth of too many Denver entrepreneurs for too long," Mayor Michael B. Hancock said. "By dedicating a small portion of our marijuana tax fund to this ambitious, community-centered investment tool, we can level the playing field for small businesses, allowing diverse owned businesses the opportunity to get in the game, knowing our economy will be strong when everyone is participating.”

“NCTF-Denver is expanding access to venture capital in Denver, and the city’s commitment through the Malone Fund will allow us to bring more business leaders to the forefront of our economy that statistically have not been given access to the critical tools of economic mobility like business investments, said Danielle Shoots, NCTF-Denver founding partner and managing director. “This public-private partnership will create a ripple effect for underinvested and underrepresented entrepreneurs across the region, and I am proud to partner with the Mayor and city.”

NCTF-D is actively seeking partnerships with companies that:

• Are scalable, high-growth, early to mid-stage companies
• Have founders located and operating in Colorado (or willing to relocate)
• Are committed to building diverse workforces and economies as they grow and scale their business
• Understand that this investment will likely result in an equity partnership, where investment will be traded for a percentage of the partnership's business

“This is a game-changer for Denver,” said Jen Morris, DEDO Executive Director. “Creating access to capital for historically disadvantaged companies is not a simple solution of ‘writing a check.’ Through this partnership, we’ve created a comprehensive approach to meet small business owners and entrepreneurs where they are through an ecosystem of trusted community providers.”

For those companies that are still working toward becoming capital ready, DEDO and NCTF-D have partnered on the creation of the Collective for the Advancement of BIPOC+ Businesses (CABB) which is also funded through DEDO’s Herman Malone Fund. CABB works to identify, support, and serve BIPOC+ owned businesses in Denver through high touch culturally relevant education, collaboration, access to capital and financial literacy with the goal of getting them ready for investment from NCTF-D and/or other sources. Businesses interested in exploring this program can learn more here as well as join a scheduled information session.

NCTF recently invested equity financing in six scaling firms, including Ad Fontes Media, a BIPOC-owned firm that uses a sophisticated, human-driven methodology to help its customers gauge the accuracy and bias in news and electronic media such as podcasts. Ad Fontes Media also completed the Denver ScaleUp Network (DENSUN) accelerator program prior to the NCTF investment.

“This equity investment will allow us to invest in technology development and go-to-market execution—two areas of our business that are critical to achieve growth,” said Vanessa Otero, Founder and CEO, Ad Fontes Media. “It is especially timely because growing quickly in 2023 will set us up for success in 2024, an election year in which demand for our news-rating data and services will be higher than ever. We’ve already been able to hire key, diverse talent in Colorado and across the US, which has made a huge difference in our product offerings and business development opportunities.”

About Denver Economic Development & Opportunity

Denver Economic Development & Opportunity works to ensure an inclusive and innovative economy for all Denver residents, businesses, and neighborhoods. Learn more at denvergov.org/economicdevelopment.

About the New Community Transformation Fund - Denver

NCTF-Denver is a venture capital fund based in Denver, Colorado that invests in early stage BIPOC+ founders who have been overlooked and undervalued but are now seen as the new high-growth opportunity. For more information, please visit newcommunityfund.com/denver.

Original source can be found here