State promotes diversity fund for job creation

The Indiana Economic Development Corporation, in partnership with Elevate Ventures, is taking advantage of a core component of economic growth by launching the Indiana Diversity Fund.

“We are convinced that this type of funding will increase economic development and growth in Indiana,” said Deborah Collins Stephens, entrepreneurial advisor for Elevate Ventures. “I feel privileged to be a part of this.”

The Indiana Diversity Fund is a sub-program under the Indiana Angel Network Fund, an early-stage co-investment program for Indiana companies under the U.S. Department of Treasury’s State Small Business Credit Initiative.

“The Diversity Fund will make an investment, but the Angel Fund can provide additional funding,” Stephens said.

The fund is dedicated to supporting and investing in three specific audiences including innovative women, minority and veteran-owned businesses with high growth potential in Indiana.

“Diversity strengthens our state,” Governor Mike Pence said in a press release. “As women, minority, and veteran-owned businesses grow, these firms will employ more people in our state. Diversity matters and leads to stronger communities and job creation.”

Elevate Ventures is actively seeking partners locally, regionally and nationally. The initial total funding available is $1 million.

The Indiana Diversity Fund targets Indiana businesses owned and managed by women, minorities and veterans, with average annual revenue of less than $3 million in their two most recent fiscal years.

“The evidence is compelling,” Indiana Secretary of Commerce Victor Smith said.

“Minority groups have a high propensity for starting up businesses. We look forward to providing much needed capital and assistance to high potential minority business targets, and to expanding this program once this initial pilot demonstrates success.”

Different from minority-owned business certifications, the Indiana Diversity Fund seeks to catalyze private investment by providing co-investment dollars into such companies with clear and sustainable competitive advantages, scalable business models with achievable growth and exit potential and a likely trajectory of meaningful job creation.

Stephens explained that they focus on women entrepreneurs because some Harvard research shows when women take positions in boardrooms and in senior level management positions, the firm is often more profitable. However, only 6 percent of venture capital in the whole country is getting into the hands of women.

“This is a problem,” Stephens said. “There is a lot of convincing evidence that women leaders and women entrepreneurs make a difference in businesses.”

Stephens said they are focusing on veterans because nearly 45 percent of returning veterans express an interest in being entrepreneurs.

“We shouldn’t be shocked by this,” she said. “The military training they receive and the ideas that are drilled into them are the same traits we see in entrepreneurs including self-advocacy, taking strategic risks, analyzing failure and turning it around in their favor.”

Stephens also explained that they look to minorities because of their immigrant spirit, the hardworking spirit that build this country.

“We see a lot of potential in minority business owners,” Stephens said.

The Indiana Diversity Fund is dedicated to helping and supporting these three groups by means of education, funding and expert resources.

“We anticipate helping whoever applies,” Stephens said. “I am a mentor and a coach, I just want them to be successful and we are committed to helping them.”