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

Betsy Fore's journey began at the tender age of five when her grandmother gifted her a Velveteen Rabbit, instilling in her the belief that love could bring life to inanimate objects. Fast forward to today, that cherished rabbit has inspired the name of her new venture capital firm, Velveteen Ventures, which officially launched on Tuesday. After nearly two decades of building her own companies, Fore realized her potential to create a broader impact by supporting other entrepreneurs. "Instead of building one thing, I can help other founders create dozens of life-changing companies," she shared with TechCrunch. Among her notable achievements is founding the baby food brand Tiny Organics, marking her as the first Native American woman to secure a Series A funding round, alongside her previous work with the app development company Wondermento. While Fore has not disclosed the specific financial goals for Velveteen Ventures, SEC filings indicate that fundraising began last October. The firm, operating out of the Midwest, aims to invest between $500,000 and $4 million in seed and Series A startups, with a focus on healthcare, climate, consumer goods, and community initiatives. Her goal is to support approximately 15 to 20 companies. With this launch, Fore becomes one of the few Native American women to establish a venture capital firm in the United States. A few years back, TechCrunch highlighted a staggering lack of funding for Native American founders, a statistic that Fore is determined to change. She also leads a nonprofit dedicated to providing mentorship and resources for Native American entrepreneurs. Reflecting on the fundraising process, Fore expressed her excitement about securing institutional investments right from the start. She noted her commitment to supporting purpose-driven institutions that recognize the potential for strong returns in the Midwest. "When we bring on a limited partner, it’s because they were actively seeking us out," she remarked. Joining Fore at Velveteen Ventures is Karla Brollier, who will focus on climate investments, and Katherine Stabler, who takes on the role of chief operating officer after a successful career as an attorney in private funds. Fore hopes to honor her heritage through her work and has pledged that a portion of Fund I’s profits will benefit Native American tribes. "While not an impact fund, Velveteen aims to demonstrate that profitability and purpose can coexist," she stated. Fore's extensive experience includes previous roles at XFactor Ventures and LongJump Ventures, and she is also preparing to release a book on entrepreneurship and venture capital.