Welcome to the Business Journal Archives
Search for articles below, or continue to the all new BusinessJournalDaily.com now.
Search
Minority Business Roundtable Venture Capital Fund Launched
WASHINGTON -- The Minority Business Roundtable announced today the formation of the MBRT Venture Capital Fund Inc., which will launch an advisory board April 29 at the City Club of Washington here. The fund intends to generate return on investments by applying a proven model for early-stage venture capital for small, minority- and women-owned businesses. The fund already has taken a position in three companies and will invest in 15 to 20 new, high-potential companies each year."Access to capital is a significant concern to small- and minority-owned businesses across the country," says Roger A. Campos, fund chairman and president and chief executive officer, MBRT. "The MBRT Venture Capital Fund fills a need for early- to mid-stage companies with innovative and high-potential business concepts in diverse areas and industries."Founding partners of the MBRT Venture Capital Fund include the Artemis Strategy Fund Inc. and The Corporate Finance Institute Inc."Historically, relatively little capital has been available for small and minority businesses, even in an entrepreneurial climate," says Rebel Holiday, fund president and president of Artemis Strategy Fund. "The MBRT Venture Capital Fund will seek small, minority- and women-owned businesses that have developed proprietary products, strong margins, and excess rate of return, exceptional management, near-term revenues, and strong potential for stock liquidity."Minority-owned companies have difficulty attracting capital for several reasons, Holiday says. Traditional venture capital investment groups often provide mid- to late-stage financing, but many minority-owned companies need investment earlier in the business life cycle. Those investors who are willing to finance early-stage companies often require an equity position or levels of control that can jeopardize the company's minority-business certification status. These conditions often eliminate the possibility of investments in high-potential, early-stage companies, even those with viable businesses, excellent products, well-defined market niches, effective marketing strategies and capable management teams."The potential rate of return is huge," says Tom Trexler, president of The Corporate Finance Institute Inc. "This niche market has been vastly underutilized."The MBRT Venture Capital Fund Inc. supports early-stage small, minority- and women-owned companies in securing the capital they need to become high-growth, well-managed companies. Most companies are raising their first or second round of capital to enhance growth.Visit the MBRT Venture Capital Fund Inc.: www.mbrtventurecapitalfund.com"