New Community Transformation Fund announces latest investments
Author: Carol Zichi
Posted Date: November 22, 2024
(GRAND RAPIDS, MI) – New Community Transformation Fund (NCTF), a Grand Rapids-based venture fund aimed at boosting businesses owned by people of color in West Michigan, announces it has made recent investments in three companies:
Functional Fluidics – Michigan
Functional Fluidics is a global health technology company specializing in red blood cell health that leverages healthcare data and laboratory-based technology to accelerate the development of life-changing therapies, support clinical trials, and bridge the gap between clinical research and patient care. Their mission is to make red blood cell health an achievable endpoint to improve quality of life, starting with Sickle Cell Disease.
NCTF investment is in the bridge round leading to a Series A. The company intends to use the Series A funds to increase the patient network database by 40% at the end of 2025, expand the red blood cell specialty lab, position for FDA biomarker qualification, and bolster the use of their proprietary database.
“The investment from the NCTF is validation of the impact that Michigan-based biotech companies are having globally,” said Patrick Hines, M.D., PhD, founder and CEO of Functional Fluidics. “Functional Fluidics intends to make Michigan a global hub for innovation in the red blood cell health space.”
Opnr - Michigan
Opnr is a platform that helps concert organizers save time and boost ticket sales by matching them with the perfect acts for their shows. With 720 organizers and 11,000 musicians already on board, Opnr uses fan data to ensure that every booking drives maximum engagement and revenue.
NCTF has invested in its pre-seed round. The company is based in West Michigan and plans to expand its marketing channels, company hires, and updates to the technical platform as part of this round. NCTF is excited about this company because they are native to Michigan, have been able to expand, run very lean operations, and have been named a semi-finalist in the Media and Entertainment category of the Pharrell William’s Black Ambition Prize competition.
Andrea (Dre) Wallace, CEO, shares, “We are thrilled to have this investment from NCTF. We want Opnr to be the leading platform music venues, promoters and festivals use to connect talent with global opportunities. Being partnered with NCTF will help us reach our goal."
RiseKit - Illinois
NCTF has invested in RiseKit’s seed round. RiseKit fosters collaboration between employers, community organizations, talent providers, and workforce agencies to create seamless pathways to opportunities and economic mobility for job seekers. Seventy-five million Americans struggle to find and keep quality jobs due to systemic barriers, resulting in an estimated $700 billion in lost economic output annually.
RiseKit intends to use the funds raised to expand into more midwestern markets, including Michigan. RiseKit will hire West Michigan employees to support a local ecosystem of employers and community organizations as part of this expansion.
RiseKit’s seed round will also help accelerate the company’s online user experience enhancement, including developing AI tools for creating job-seeker profiles and resumes and recommending career pathways, job training programs, and support services to better ensure candidate job readiness.
RiseKit expansion is through partnerships from introductions to large employers, community organizations, foundations, chambers of commerce, and government leaders.
“We’re excited to partner with NCTF because of their dedication to workforce development and creating new pathways for equitable employment opportunities for all Michiganians,” said Josh Glantz, RiseKit’s CEO. “Even before joining our seed round, NCTF has helped make introductions to their extensive network of employers, community organizations, foundations, government leaders, and chambers of commerce, all of whom are critical to a healthy employment ecosystem.”
These companies fit NCTF’s focus on investing in emerging companies within financial technology, health care, advanced manufacturing, and information technology. Those are the primary industries that the fund focuses on, with investments expected to range between $500,000 to $1,500,000.
“We believe these companies bring unique business ideas to the Grand Rapids region, so we are eager to walk alongside them to help them prosper,” said Birgit Klohs, executive board chair and co-founder of the New Community Transformation Fund. “These entrepreneurs have been in our pipeline and the time was right to invest in them now.”
About New Community Transformation Fund
NCTF, based in Grand Rapids, Michigan, officially launched on January 23, 2020. It was inspired by an idea that former longtime The Right Place, Inc. president and CEO Birgit Klohs and Skot Welch had to create opportunities for entrepreneurs of color.
The venture capital fund aims to primarily invest in companies owned and/or operated by diverse business leaders while providing suitable risk-adjusted returns to its investors.
The fund focuses on scalable early to mid-stage businesses and transitioning succession companies within financial technology, health care, advanced manufacturing, and information technology.
NCTF maintains an investment committee comprised of local and national members and is governed by a board of directors which, along with Klohs as executive chair, includes fellow NCTF co-founder Skot Welch, President and CEO Global Bridgebuilders; Kwame Anku, CEO and General Partner of Black Star Fund; Garrick Rochow, President and CEO of CMS & Consumers Energy; Christal Jackson, an internationally known venture philanthropist; Ron Hall, President and CEP of Bridgewater Interiors; and Vivian Pickard, President and CEO of Pickard Group.