MADISON, Wis.–Noting it has now invested more than $11 million to date, TruStage Ventures, the venture capital arm of TruStage, has released its second annual report detailing the impact of its Discovery Fund, which was founded in 2021 to invest in early-stage companies “led by diverse founders and CEOs building solutions for financial inclusion.”
According to the company, the companies are making an impact on improving financial health and providing underserved communities with more affordable, accessible financial services.
“Diverse leaders are often best positioned to solve challenges in inequity and financial inclusion, yet they remain underfunded,” Elizabeth McCluskey, director of the Discovery Fund, said in a statement. “For the past three years, we’ve supported and invested in companies offering solutions to improve the financial health of communities underserved by the traditional financial system. It is making a real difference, and we are proud to commit to continuing these investments and improving industry standards.”
What the Data Show
TruStage Ventures noted that in 2023 companies founded solely by women accounted for 2% of the total capital invested in venture-backed startups and black founders received less than 0.5%.
“The Discovery Fund challenges industry standards, allocating 34% of its investment dollars to women founders and 66% to BIPOC founders to date,” the company said. “The fund aims to narrow the equity gap by investing up to $5 million annually in fintech companies led by BIPOC, LGBTQ+, and women founders.”
Additional Findings
During 2023 the report shows the fund invested in four new companies and completed follow-on investments in seven portfolio companies.
“Its team facilitated growth for its portfolio companies by providing over 100 strategic introductions to credit unions and other customers and securing more than 50 notable speaking and media engagements,” TruStage Ventures said.
Companies in Fund
New companies in the Discovery Fund’s portfolio include Debbie, Salus, Starlight, and Kanmon.
“The Discovery Fund partners with diverse founders who are best positioned to build scalable businesses that address real issues that underserved communities face,” Frida Leibowitz, CEO and co-founder of Debbie, said in a statement. “We’re looking forward to building our name alongside this partnership, leveraging TruStage Ventures’ influence and credibility to reach more credit unions and help them acquire young members.”
Early Stage Support
The Discovery Fund said it supports companies in their earliest stages when establishing a reputation and attracting funding can be the most challenging. It added that in 2023, three companies graduated from the Discovery Fund to the Ventures portfolio.
“Having validated their business models and scalability, Zirtue, Pulsate, and Beem received larger checks from the TruStage Ventures fund,” the company added.
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