New Community Transformation Fund

What New Community Transformation Fund does

The New Community Transformation Fund (NCTF) is a Delaware limited partnership venture capital fund headquartered in Grand Rapids, Michigan, that invests $500,000 to $1.5 million in early to mid-stage companies owned or operated by entrepreneurs of color, primarily in West Michigan or in businesses willing to relocate there. Founded in 2020 by Birgit Klohs (former CEO of The Right Place) and Skot Welch, with seed capital from Bank of America, Consumers Energy Foundation, and DTE Energy, NCTF targets scalable companies in advanced manufacturing, financial technology, healthcare, and information technology, plus succession/transition acquisitions. The fund generated its economic model from standard VC revenue streams — management fees from limited partners and carried interest on equity exits — and had raised approximately $12 million against a $25 million target as of October 2023.

NCTF's go-to-market is direct enterprise outreach supplemented by deal flow from The Right Place, Michigan Capital Network (with which it formalized an affiliation in December 2024), and other regional partners. To date the fund has invested in seven portfolio companies including BAMF Health (radiopharmaceuticals/AI cancer treatment), Zil Money (fintech), Grain Technology (ML-driven underwriting), Functional Fluidics (sickle cell diagnostics), Opnr (concert marketplace), and RiseKit (workforce platform). In July 2022 NCTF replicated its model as NCTF-Denver, a Colorado affiliate targeting $50 million under managing partner Danielle Shoots, and in 2026 the fund announced Fund II with a $5M first close and up to $9.8M in matching funds from the Michigan Economic Development Corporation.

The fund is governed by a board that includes co-founders Klohs (Executive Chair) and Welch (Managing Partner), alongside Kwame Anku (Black Star Fund), Christal Jackson, Garrick Rochow (CMS & Consumers Energy), Ron Hall (Bridgewater Interiors), and Vivian Pickard (Pickard Group). Dale Grogan serves as CEO of NCTF Holdings. Operations have been led by interim managing director Abid Ali since the June 2024 departure of founding managing director Ollie Howie (formerly of SoftBank's SB Opportunity Fund), with a national search for a permanent successor underway.

Name

New Community Transformation Fund

Legal name

New Community Transformation Fund

Website

https://newcommunityfund.com

Company type

Private

Founded year

2020

Operating status

Operating

Headcount range

1–10 employees

Short description

NCTF is a Grand Rapids-based venture capital fund that invests $500,000–$1.5 million in early to mid-stage companies owned or operated by entrepreneurs of color in West Michigan, with affiliates in Denver and a newly launched Fund II.

Ownership category

akta.pro rank

Product category

Venture Capital Fund

NAICS

Other Investment Pools and Funds (5259)

SIC

Investment Advice (6282)

akta.pro primary industry

Gender Lens / Diversity, Equity & Inclusion (DEI) Funds (FSANAJAM)

Keywords

• Venture capital fund
• Minority-owned business investment
• Growth equity investing
• Entrepreneur capital access
• Portfolio business development

Headquarters

HQ city

Grand Rapids

HQ country

United States

HQ region

North America

Offices2 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Operations, Marketing or Sales, Others

Revenue model

1. Management Fees: VC fund collects management fees from limited partner investors to cover operational costs of fund management.
2. Carried Interest / Equity Returns: Returns generated from equity investments in portfolio companies through exits via acquisition, IPO, or secondary sales. The fund aims to provide suitable risk-adjusted returns to investors while creating economic prosperity in communities of color.

Go-to-market motion1 record

Distribution channels1 record

Marketing channels6 records

Core offering

The New Community Transformation Fund is a venture capital fund that invests $500,000 to $1.5 million in early to mid-stage companies and transitioning succession businesses owned and/or operated by business leaders of color in West Michigan (or willing to relocate there). The fund focuses on advanced manufacturing, financial technology, healthcare, and information technology sectors. Beyond equity capital, NCTF provides portfolio companies with business development support including mentorship, advisory services, and corporate partnership brokering. The fund operates a replicable affiliate model with the Denver fund as its first national expansion.

Product overview

The New Community Transformation Fund is a $25 million venture capital fund that primarily invests in companies owned and/or operated by diverse business leaders in West Michigan. The fund focuses on scalable early to mid-stage businesses and transitioning succession companies within financial technology, healthcare, advanced manufacturing, and information technology. The core product is the NCTF Grand Rapids Venture Fund, which makes equity investments ranging from $500,000 to $1.5 million. The fund is complemented by business development and support services including mentorship networks and corporate partnership facilitation. NCTF has expanded its model nationally through the NCTF Denver Affiliate Fund, a $50 million counterpart in Colorado. The fund recently launched a "Capital for Change" podcast as an educational and thought leadership initiative. To date, NCTF has invested in seven portfolio companies including BAMF Health (healthcare), Zil Money (fintech), Grain (fintech), Opnr (information technology), RiseKit (workforce technology), and Functional Fluidics (healthcare technology).

Differentiator

Problem solved

Functional benefit

Products and services

• NCTF Grand Rapids Venture Fund A $25 million venture capital fund that invests $500,000 to $1.5 million per company in scalable early to mid-stage businesses and transitioning succession companies owned and operated by business leaders of color in West Michigan or willing to relocate there. Focus industries include advanced manufacturing, financial technology, healthcare, and information technology.
• NCTF Denver Affiliate Fund A $50 million venture fund replicating the NCTF model in Colorado, targeting early-stage businesses owned by people of color with investments spanning advanced manufacturing, food processing, agribusiness, health and beauty, tourism, aerospace, biosciences, and information technology.

Quantifiable outcome

• Portfolio companies process over $30 billion in transaction volume
• +2 more outcomes

Named customers6 records

Segments3 records

Ideal customer profiles3 records

Technology focussed No

API detail

Has API

No

API docs

API detail

Core technology

AI maturity

App detail

Partnerships

Four partnerships are on record, tiered core.

• Michigan Capital Network (MCN)coreStrategic or Co-development Partner · 9 December 2024Affiliation agreement announced December 2024 between NCTF and Michigan Capital Network. Both organizations remain standalone entities under their respective governance structures. MCN Ventures provides guidance, due diligence, compliance support, and administrative services for NCTF's investment initiatives. MCN manages $150 million in assets under management and represents five Michigan angel investing groups with 200+ member-investors.
• The Right Place, Inc.coreStrategic or Co-development PartnerNCTF partnered with The Right Place, West Michigan's leading regional economic development organization since 1985. The Right Place has assisted thousands of businesses investing more than $5 billion and creating over 45,000 jobs. Provides deep relationships with business owners and expertise in Michigan's entrepreneurial ecosystem.
• Black Star FundcoreStrategic or Co-development PartnerKwame Anku, CEO and General Partner of Black Star Fund, is a co-founder and board member of NCTF. Black Star Fund is one of the first Black venture capital funds with an all-Black portfolio. Anku served as fund consultant during the first year of operations.
• New Community Transformation Fund - DenvercoreChannel Partner/ Reseller/ DistributorFirst affiliate of NCTF Grand Rapids, launched July 2022. Led by Danielle Shoots as managing partner. Received $5 million from Colorado Venture Capital Authority in first closing round. Limited partner investors include Bank of America and Colorado Housing and Finance Authority. Aims to raise up to $50 million.

Scale indicators6 records

Recent moves7 records

Expansion highlights6 records

Direct peers

• Black Star Fund: One of the first Black venture capital funds with an all-Black portfolio, founded and led by Kwame Anku, who is a co-founder and board member of NCTF. Directly comparable as a VC fund focused on investing in Black entrepreneurs and founders of color.
• Harlem Capital Partners: Early-stage VC firm committed to investing in minority and women founders, with a target of investing in 1,000 diverse founders over 20 years. Directly comparable as a minority-focused venture fund pursuing venture returns while addressing diversity gaps in VC.
• Backstage Capital: VC fund dedicated to investing in underrepresented founders, with a goal of backing 1,000 companies led by women, people of color, and LGBTQ+ founders. Directly comparable as a fund explicitly targeting minority and underrepresented founders.
• Kapor Capital: Impact-focused VC fund investing in tech startups that close gaps of access, opportunity, or outcomes for low-income communities and people of color. Directly comparable as a fund combining venture returns with explicit DEI/impact thesis.
• SB Opportunity Fund (SoftBank): SoftBank's $100M fund dedicated to investing in Black, Latinx, and Native American founders, where NCTF's former Managing Director Ollie Howie previously worked. Directly comparable as a large, mission-driven VC vehicle focused on underrepresented founders.
• Impact America Fund: National early-stage VC fund investing in companies creating positive social impact, with a focus on underserved founders and communities. Directly comparable as an impact-first VC fund pursuing measurable outcomes alongside financial returns.
• Camelback Ventures: Early-stage fund and accelerator that invests in BIPOC and women entrepreneurs, particularly in underserved regions of the US. Directly comparable as a fund targeting underrepresented founders with both capital and business development support.
• New Voices Fund: Early-stage VC fund investing in women of color entrepreneurs building tech and tech-enabled companies. Directly comparable as a venture fund explicitly focused on founders of color with a thesis-driven approach to underrepresentation.
• Zane Venture Fund: Early-stage VC fund investing exclusively in BIPOC and women-led startups, providing capital and a founder-first support model. Directly comparable as a VC fund with a thesis tied directly to backing underrepresented founders.
• Michigan Capital Network: Michigan-based network of 200+ angel investors across five angel groups managing $150M in AUM, which signed an affiliation agreement with NCTF in December 2024 to provide due diligence, compliance, and administrative support. Directly comparable as a Michigan-based early-stage capital provider.

Market position

Strengths5 records

Weaknesses5 records

Competitive moat5 records

Key risks6 records

Key highlights6 records

Customer concentration

• YouTubeyoutube.com/results?search_query=New%20Community%20Transformation%20Fund
• LinkedInlinkedin.com/company/new-community-transformation-fund

Revenue estimate

Valuation estimate

Number of profiles

Profiles9 records

Subsidiaries2 records

Funding overview

Funding rounds

Investors

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M&A

Investments4 records

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Frequently asked questions about New Community Transformation Fund