Velveteen Ventures: Native American-Led Fund - Betsy Fore

A Childhood Gift Inspires a New Venture Firm

Betsy Fore recalls a cherished gift from her grandmother when she was five years old: a Velveteen Rabbit acquired from Goodwill. She firmly believed that with sufficient affection, the toy could come to life.

This rabbit has now become the namesake of Fore’s new venture firm, Velveteen Ventures, which officially launched on Tuesday.

From Founder to Investor

Having spent nearly two decades building companies, Fore realized she could maximize her impact by supporting other entrepreneurs.

She shared with TechCrunch that she aims to empower founders and contribute to the creation of numerous impactful businesses.

Fore’s previous ventures include Tiny Organics, a baby food company where she achieved the distinction of being the first Native American woman to secure a Series A funding round, and Wondermento, an application development company.

Investment Focus and Strategy

While Fore did not disclose the target fund size, SEC filings indicate fundraising began in October.

Velveteen Ventures, headquartered in the Midwest, intends to invest between $500,000 and $4 million in seed and Series A stage companies.

The firm’s investment strategy will prioritize companies operating within the healthcare, climate, consumer, and community sectors.

The goal is to support a portfolio of at least 15 to 20 innovative companies.

Breaking Barriers for Native American Women

Notably, Fore’s launch positions her as one of the few Native American women leading a venture firm in the United States.

Previous research by TechCrunch revealed extremely limited funding data for Native American founders, highlighting a significant gap in representation.

Fore is actively working to address this disparity through a nonprofit organization dedicated to providing mentorship and opportunities for Native American entrepreneurs.

Fundraising Success and Limited Partner Support

Fore described the fundraising process as “thrilling,” emphasizing the firm’s success in securing initial commitments from institutional investors.

She also noted the strong support from purpose-driven institutions that recognize the potential for both financial returns and positive impact within the Midwest region.

Fore explained that limited partners often sought out Velveteen Ventures, demonstrating a proactive interest in the firm’s mission and vision.

The Velveteen Ventures Team

Karla Brollier, also of Native heritage and originally from Patagonia, joins Fore as a key member of the team, leading climate-focused investments.

Katherine Stabler brings decades of legal experience from private funds and will serve as the firm’s chief operating officer.

Honoring Ancestry and Prioritizing Purpose

Fore expressed her commitment to honoring her ancestors through the fund’s operations.

A portion of the carried interest from Fund I will be allocated to Native American tribes.

While not explicitly an impact fund, Velveteen Ventures aims to demonstrate the compatibility of profitability and purpose.

Fore’s prior experience includes roles at XFactor Ventures and LongJump Ventures, and she is currently finalizing a book on entrepreneurship and venture capital.