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New Community Transformation Fund says it has deployed $3.3M and seeks matching capital to unlock $9.8M state commitment
Summary
Cofounders of the New Community Transformation Fund told the committee the fund has invested $3.3 million across dozen portfolio companies and said a $9.8 million commitment from the Michigan Strategic Fund for Fund 2 is conditional on NCTF raising matching capital.
Representatives of the New Community Transformation Fund (NCTF) updated the committee on investments deployed to date and on fundraising for a second fund that carries a conditional state commitment.
Scott Welch, cofounder, and Abid/Abed (managing director) described NCTF's focus on providing larger, later‑stage capital for underrepresented founders. The managing director reported that over the last 12 months the fund reviewed roughly 1,200 opportunities and has deployed $3,300,000 across 12 portfolio companies, with an average check size of about $421,000.
Abid/Abed highlighted specific outcomes: investments in Honeycomb Credit (a fintech platform enabling community‑backed loans and a matching program up to $20,000 for qualifying campaigns), Opener (a marketplace for musicians that unlocked additional capital), Hollow Footwear (which the presenters said is on track to grow from roughly $2 million to $23 million in revenue this year), and others such as Blastpoint and Hummus Goodness. NCTF reported that its investments helped some portfolio companies hire staff and expand operations into Grand Rapids.
Looking ahead, the managing director said NCTF has received a commitment letter from the Michigan Strategic Fund for $9,800,000 toward Fund 2, but those funds are only "active if we can fundraise matching capital." The presenters described Fund 2's focus on pre‑seed and early‑stage founders in advanced manufacturing, life sciences and software and said the portfolio target is 13–15 companies with 3–5 new investments per year.
Commissioners asked how NCTF coordinates with the Urban League, community development financial institutions and other local funders. Presenters described informal coordination, referral pathways, and complementary roles in the ecosystem: NCTF positions itself for larger follow‑on capital while other entities provide technical assistance, seed funding, or procurement connections.
No formal action was taken; presenters said they would continue coordination with local partners and provide additional materials or follow‑up as requested by commissioners.
