Seeking to support diversity in funding and narrow the gap that women and people of color entrepreneurs face, CUNA Mutual Group through its venture capital arm CMFG Ventures has launched The Discovery Fund. They are committed to finding and funding startups that have diverse founding teams, beginning with their initial commitment of $15 million over three years.
Elizabeth McCluskey, who joined CMFG Ventures from Impact Engine, a women-owned and led venture capital and private equity firm, will manage The Discovery Fund. McCluskey and her team will build a portfolio of diverse startups led by people of color and women entrepreneurs.
CMFG Ventures has invested over $200 million in 28 companies over the last five years, primarily Series A and B rounds of funding. They proudly tout that several of their investments achieved “unicorn” status as their valuations passed $1 billion.
“At CMFG Ventures, we’re well aware of the barriers to entry that exist for people of color and women entrepreneurs in gaining access to venture capital. Through the launch of our Discovery Fund, we believe we can build a more diverse portfolio of companies to support now and invest in further as they grow,” said Brian Kaas, President and Managing Director of CMFG Ventures and Senior Vice President of Corporate Development at CUNA Mutual Group.
The Discovery Fund focuses early-stage companies with diverse founding teams targeting the financial technology industry. Its three investments to date include Home Lending Pal, an AI-powered mortgage advisor and blockchain-based marketplace built to address mortgage inefficiencies and biases, Line, a platform where consumers can access up to $1,000 for essentials or emergencies with no interest or income restrictions and Pulsate, a marketing communications platform for financial institutions to send personalized messages to members, driving engagement, sales and loyalty.
“We also see a great opportunity to provide resources to help these young companies develop by getting in front of credit unions and credit union customers. Credit unions are mission-based, serving middle market communities that are too often overlooked by other financial services providers.”
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