A newly launched venture capital firm called VC 414 aims to invest in women and other underrepresented entrepreneurs.
The firm was established in January by venture capitalist and angel investor Jennifer Abele and former BMO Harris executive Raquel Filmanowicz. While the co-founders are continuing to raise dollars with plans to open the fund later this year, they’ve made some initial investments using their own capital commitments to get the ball rolling.
Speaking yesterday during a Wisconsin Technology Council event in Wauwatosa, Filmanowicz said the firm will invest with Black, Latino and Indigenous founders, as well as veterans, people with disabilities, members of the LGBTQ community and other women.
Along with financial technologies, the firm will be focusing on companies working with “tech-enabled” fashion, wellness and beauty ideas, as well as others. Filmanowicz also highlighted an opportunity to target businesses seeking contracts with government entities.
“We found that there aren’t many VCs kind of specializing in startups that have a govtech side to them, and we thrive in that environment … We can add a lot of value there,” she said.
Abele declined to share details on the target size for the fund, noting the firm’s strategy is evolving given national market trends.
“We’re reevaluating a little bit,” she said. “The fall of [Silicon Valley Bank] did not help anybody who’s raising funds, whether you’re a startup or a VC, it just is not a good market for that right now.”
Still, both co-founders said the firm is gaining traction with several early investments in companies developing social shopping applications, worker productivity programs and more. VC 414’s minimum check size is $200,000, and its first four investments were all for $250,000, Abele said. She added the firm’s maximum investment will likely be $1 million, but that will depend on the overall fund size.
Meanwhile, Filmanowicz said the firm is open to co-investing with other firms, though it will largely stay away from capital-intensive sectors like real estate. She and Abele have been meeting with other firms in Wisconsin and elsewhere to identify partnerships and new avenues for promising deals.
“We’ll lead a third of our deals, but part of our strategy is to reserve half of the fund for follow-on,” Filmanowicz said.
See more on the firm: https://vc414.com/
–By Alex Moe
