The closing of a $50 million fund aimed at investing in Black, brown, and women entrepreneurs could create opportunities for business owners looking to call Minnesota home.

The MSP Equity Fund is from partners in the Forge North startup coalition — an initiative launched by gener8tor, Greater MSP and anchored by investments from Allianz Life, Allina Health, and Xcel Energy.

“The first close of the MSP Equity Fund demonstrates the strong momentum behind the fund and recognition of the value and importance of the fund’s thesis. But I want to stress that this is just the beginning – the first step in our strategy to partner with high-performing fund managers that see the tremendous business opportunity to invest in high-growth diverse-led startups, an often undervalued yet overperforming asset class. Inclusion is imperative in this next era of innovation. We believe the MSP Equity Fund will provide the necessary capital and support to sustain a growing, inclusive innovation economy in the state.” Al Cornish, manager of the fund and gener8tor partner, said in a statement.

At a time when the U.S. is investing billions to boost manufacturing, with a focus on clean energy, Minnesota has created a diverse economy post-pandemic.

Its retail, health care and technology sectors are all strong, according to a report from the Minnesota Reformer. Minnesota’s GDP increased by roughly 22 per cent between 2010 and 2022, the article reads.

It also says Minnesota has the largest GDP of our neighbouring states: Iowa, North Dakota, South Dakota, and Wisconsin. As of the second quarter of 2022, Minnesota’s total GDP was about $348 billion.

Still, just five per cent of venture capital funding went toward Black and racialized groups, according to Crunchbase. So, the Forge North startup coalition is targeting change.

“This first close is a great step for further driving inclusion and innovation among our startup community in the Twin Cities,” Jasmine Jirele, president and CEO at Allianz Life, said in a statement. “Partnering with Al, gener8tor and Forge North on this important initiative will help build momentum as well as further our mission — we secure your future — right here in our own community.”

The MSP Equity Fund is part of a larger portfolio of work to address systemic issues for entrepreneurs in Minnesota, according to a statement.

Future Forge North coalition projects will focus on angel investments, corporate partnerships, and support for startup incubators and accelerators. gener8tor also hosts the gBETA Medtech accelerator with cohorts focused exclusively on Black founders.