When Betsy Fore was five, her grandmother got her a gift she has never forgotten: A Velveteen Rabbit from Goodwill that Fore believed, with enough love, could spring alive. Decades later, that rabbit has lent its name to Fore’s venture firm, Velveteen Ventures, which came to life on Tuesday.
“I realized after building companies for nearly two decades that I could make the greatest ripple in this one precious life by being on the other side of the table,” she told TechCrunch. Her companies include the baby food company Tiny Organics (for which she became the first Native American woma to raise a Series A) and the app builder Wondermento.
“Instead of building one thing, I can help other founders build dozens of life-changing companies,” Fore said.
Fore declined to share what amount the firm’s fund would aim to raise, but SEC filings show it started raising in October. The firm, based in the Midwest, will look to invest $500,000 to $4 million in seed and Series A companies, focusing on the healthcare, climate, consumer, and community sectors. It hopes to invest in at least 15 to 20 companies.
More interestingly, however, with this launch, Fore becomes one of the few Native American women to launch a venture firm in the U.S.
A few years ago, when TechCrunch looked for funding statistics for Native American founders, the numbers were so low that they almost couldn’t be accurately pulled. Fore has been working to change that — she has a nonprofit that has worked to offer mentorship and opportunities to Native American founders.
Describing the fundraising process, Fore said it was “thrilling to have held institutional closes out the gate,” and says she has the “support of purpose-driven institutions” that believe a strong ROI also exists in the Midwest.
“I have found that when we do bring on an LP, it’s because they were searching for us,” she said.
Joining Fore at Velveteen is Karla Brollier, also of Native descent, who hails from Patagonia and will lead climate investments at the firm. Katherine Stabler is joining the firm as chief operating officer, after decades as an attorney at private funds.
Fore said she hopes to honor her ancestors as she runs the fund, adding that a portion of Fund I’s carry will go to Native American tribes.
“While not an impact fund,” she said, “Velveteen plans on proving that profits and purpose go hand in hand.” Fore previously worked at XFactor Ventures and LongJump Ventures (and is about to publish a book on entrepreneurship and venture capital).