CUNA Mutual Group’s Venture Capital Arm Launches Discovery Fund
The new fund aims to invest in start-ups founded by women and people of color.
CMFG Ventures, the venture capital arm of CUNA Mutual Group, announced a new investment fund that will target early-stage start-up organizations founded by people of color and women in the fintech industry.
The Discovery Fund, announced on Wednesday, will launch with an initial commitment of $15 million over three years, according to a statement from CUNA Mutual Group. Elizabeth McCluskey, who came to CMFG Ventures from a woman-owned and led venture capital and private equity firm, Impact Engine, will manage the fund.
“At CMFG Ventures, we’re well aware of the barriers to entry that exist for people of color and women entrepreneurs in gaining access to venture capital. Through the launch of our Discovery Fund, we believe we can build a more diverse portfolio of companies to support now and invest in further as they grow,” Brian Kaas, president and managing director of CMFG Ventures and SVP of corporate development at CUNA Mutual Group, said.
He added, “We also see a great opportunity to provide resources to help these young companies develop by getting in front of credit unions and credit union customers. Credit unions are mission-based, serving middle market communities that are too often overlooked by other financial services providers.”
According to a statement from the Madison, Wis.-based CUNA Mutual Group, the Discovery Fund has finalized three investments to date, with a steady pipeline expected for the rest of 2021 and beyond. Investments closed to date include:
- Home Lending Pal, an AI-powered mortgage advisor and blockchain-based marketplace built to address mortgage inefficiencies and biases.
- Line, a platform through which consumers can access up to $1,000 for essentials or emergencies with no interest or income restrictions.
- Pulsate, a marketing communications platform that enables financial institutions to send personalized messages to members, driving engagement, sales and loyalty.
Over the past five years, CMFG Ventures has made more than $200 million worth of investments in 28 companies, primarily focused on Series A and B rounds of funding, according to a statement from CUNA Mutual Group.