Venture gets a rare Native American-led fund in Betsy Fore’s Velveteen Ventures

In a significant development for the venture capital landscape, Betsy Fore has officially launched Velveteen Ventures, a new firm poised to make a substantial impact. This launch marks a rare and pivotal moment, establishing one of the few Native American-led venture firms in the United States. Fore’s inspiration for the firm’s name harks back to a cherished childhood gift – a Velveteen Rabbit, symbolizing the potential for growth and vitality with dedication and care.

Fore, a seasoned entrepreneur with nearly two decades of experience, articulated her motivation to TechCrunch, stating, “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.” Her entrepreneurial journey includes founding Tiny Organics, where she achieved the distinction of becoming the first Native American woman to secure a Series A investment, and the innovative app builder Wondermento.

Velveteen Ventures, based in the Midwest, commenced its fundraising efforts in October, though the specific target amount remains undisclosed. SEC filings confirm its active pursuit of capital. The firm intends to deploy investments ranging from $500,000 to $4 million into seed and Series A companies. Its strategic focus encompasses critical sectors such as healthcare, climate, consumer goods, and community-driven initiatives, with an ambitious goal to invest in 15 to 20 companies.

The firm’s establishment by Betsy Fore is particularly noteworthy given the historical underrepresentation and lack of funding data for Native American founders in the venture capital ecosystem. Fore has been actively addressing this disparity through her non-profit organization, Natives Rising, which provides invaluable mentorship and opportunities to Native American entrepreneurs.

Describing the fundraising journey, Fore expressed enthusiasm for securing early institutional closes, highlighting the strong support from “purpose-driven institutions” that recognize the significant return on investment potential within the Midwest region. She noted, “I have found that when we do bring on an LP, it’s because they were searching for us.”

Further strengthening Velveteen Ventures’ leadership team are Karla Brollier, also of Native descent, who will lead climate investments, leveraging her expertise from Patagonia. Katherine Stabler joins as Chief Operating Officer, bringing decades of experience as an attorney specializing in private funds. This diverse and experienced team underscores the firm’s commitment to strategic and impactful investments.

Fore emphasized her aspiration to honor her heritage through Velveteen Ventures, revealing that a portion of Fund I’s carry will be directed to Native American tribes. She firmly believes that “While not an impact fund, Velveteen plans on proving that profits and purpose go hand in hand.” Fore’s extensive background also includes roles at XFactor Ventures and LongJump Ventures, and she is slated to publish a book on entrepreneurship and venture capital, further cementing her influence in the industry.