December 29, 2024 • 28 mins
On this week's episode host Phil Tower welcomes back Skot Welch, M.M., Co-Founder & Managing Partner with New Community Transformation Fund.
Scott gave an update on the New Community Transformation Fund, and told us of a recent affiliation agreement with Michigan Capital Network. Under this agreement, both organizations will remain as stand-alone entities and will continue to operate under their respective governance structures. MCN Ventures will now provide guidance, due diligence, compliance support, and administrative services for NCTF’s investment initiatives.
New Community Transformation Fund was established in January 2020 and is based in Grand Rapids.
Skot told the story of how the fund's creation came from conversations with longtime The Right Place, Inc. president and CEO Birgit Klohs and Skot Welch had to create opportunities for entrepreneurs of color. The New Community Transformation Fund aims to primarily invest in companies owned and/or operated by diverse business leaders while providing suitable risk-adjusted returns to its investors. The fund focuses on early to mid-stage businesses and transitioning succession companies within financial technology, health care, advanced manufacturing, and information technology.
Finally, Skot touched on his work with The Mosaic Film Experience. MFE was founded in 2012 by Skot Welch, as a pioneering innovation initiative focused on engaging underrepresented youth in digital media and storytelling. Skot shared the exciting news that the Mosaic Film Experience was recently awarded a $50,000 grant from the Sony Electronics CREATE ACTION program.
ONLINE RESOURCES:
-New Community Transformation Fund
-The Mosaic Film Experience
Scott gave an update on the New Community Transformation Fund, and told us of a recent affiliation agreement with Michigan Capital Network. Under this agreement, both organizations will remain as stand-alone entities and will continue to operate under their respective governance structures. MCN Ventures will now provide guidance, due diligence, compliance support, and administrative services for NCTF’s investment initiatives.
New Community Transformation Fund was established in January 2020 and is based in Grand Rapids.
Skot told the story of how the fund's creation came from conversations with longtime The Right Place, Inc. president and CEO Birgit Klohs and Skot Welch had to create opportunities for entrepreneurs of color. The New Community Transformation Fund aims to primarily invest in companies owned and/or operated by diverse business leaders while providing suitable risk-adjusted returns to its investors. The fund focuses on early to mid-stage businesses and transitioning succession companies within financial technology, health care, advanced manufacturing, and information technology.
Finally, Skot touched on his work with The Mosaic Film Experience. MFE was founded in 2012 by Skot Welch, as a pioneering innovation initiative focused on engaging underrepresented youth in digital media and storytelling. Skot shared the exciting news that the Mosaic Film Experience was recently awarded a $50,000 grant from the Sony Electronics CREATE ACTION program.
ONLINE RESOURCES:
-New Community Transformation Fund
-The Mosaic Film Experience
Mark as Played
Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Speaker 1 (00:02):
This is iHeartRadio's West Michigan Weekend. West Michigan Weekend is
a weekly programmed designed.
Speaker 2 (00:08):
To win form and enlightened on a wide.
Speaker 1 (00:10):
Range of public policy issues, as well as news and
current events. Now here's your host, Phil Tower.
Speaker 3 (00:17):
It's West Michigan Weekend from iHeartRadio. Thank you so much
for tuning in, and happy New year. As we come
to you on the final Sunday of twenty twenty four,
I'm Phil Tower in studio with a longtime friend and
guest on this program. So just a word of warning.
If it's a friend in this program, it could go anywhere.
(00:37):
I'm just saying that. He's already laughing because he knows.
He is the one and only Scott Welch, co founder
and managing partner with New Community Transformation Fund. You can
learn more at Newcommunityfund dot com. We're going to talk
about this amazing fund, which in early January will celebrate
its fifth birthday. You've got the cake picked out or
(00:58):
you're going to do cupcakes of course. January twenty twenty five. Okay, well,
this is this is great and Scott, first of all,
thank you so much.
Speaker 2 (01:07):
For being here.
Speaker 3 (01:07):
There is news an exciting new partnership just recently announced
in early December between New Community Transformation Fund and the
Michigan Capital Network, which this is a cool thing because
I dug into Michigan Capital Network a little bit. This
is a nonprofit that is like the Umbrella Organization for
(01:29):
five angel funders.
Speaker 2 (01:31):
Really cool. Yeah.
Speaker 3 (01:33):
So, and I think most people in a small business mindset,
Scott Welch, I think most people don't understand, first of all,
how competitive it is to get funding in this Serrena,
regardless if you are black, brown, whatever your skin color,
your socio economic is.
Speaker 2 (01:51):
I mean, the game has.
Speaker 3 (01:52):
Been upped significantly, But we're going to talk about that.
But I want to back up and have you retail
for our listeners. This is a really innovative thing that
was born right here in Grand Rapids, Michigan, with a
couple of really amazing people getting together and say why
don't we have this fund?
Speaker 2 (02:11):
Wow? And how let's make it happen. What is the backstory?
Speaker 4 (02:14):
The backstory film? First of all, it's always great to
spend time with you and be here. The backstory is
burget Close, who's just a dear friend of mine and
as I said, she's kind of like a surrogate elder
sister for me.
Speaker 2 (02:27):
I really just love that.
Speaker 4 (02:28):
Lady and me coming from a trip on from Durban,
South Africa having meetings there, and we get we would
get together and we'd say, okay, what's the state of
what you're doing, what you're involved in, and you know,
how can I help and what do we want to
look at and what can we change. So literally we
were getting together downtown at Wolfgang Pucks and she says, hey,
I want to just throw this really crazy idea at you,
(02:50):
and so she began to tell me what she wanted
to do in terms of helping to create generation wealth
within communities of color. The funny part is about it,
phil is I was. I journaled and yes, what you
do and you got twenty three hours in the air.
I was journaling about the same idea. So when we
sat down for lunch, I said, you know, this is
really interesting.
Speaker 2 (03:10):
Bergett.
Speaker 4 (03:10):
Let me let me show you my phone, and my
phone had a very similar idea.
Speaker 2 (03:16):
We said, okay, we need to do something. There's something
going on.
Speaker 4 (03:19):
Yeah, something's going on right going on And so immediately
we got together. I have a friend and who became
who was on the West Coast who had done this before.
We called him in and he helped us essentially whiteboard
it and to say this is good. And we were like,
you know, our thought was our is this a good thesis?
Is this a good idea? And he said, no, this
is an excellent idea. Now, mind you feel this is
(03:42):
prior to the civil unrest. This is prior to George Floyd.
We were doing this irregardless of that that had not happened,
and so we did.
Speaker 5 (03:50):
We were actually going down this path anyway.
Speaker 4 (03:53):
And so now, as you said, five years later, you know,
having six portfolio companies, having raised over thirteen million dollars,
and you know, with a partnership that we've just announced,
we've got momentum which is really exciting. And I'll just say,
pre George Floyd, pre all the racial civil unrest in
the country, they're just so much Breonna Taylor and just
(04:17):
on and on and on. This happened in Grand Rapids, Michigan,
which traditionally been in place where it's been challenging for
people of color to rise to prominent positions, especially obtain
and you and I have talked about this on the
radio show you used to host on iHeart station, clear
channel station years ago, radio and black and white about
(04:38):
how the institutional racism with respect to so many things,
getting a mortgage, lending, so many aspects of life, it.
Speaker 2 (04:47):
Continues to be an impact.
Speaker 3 (04:49):
So then you have this idea from Burget Close, who
at the time was the president and CEO of the
Right Place exactly probably arguably Scott Welch, the most powerful
connector business person in all of West Michigan.
Speaker 4 (05:04):
Fair enough to agree, Yeah, I would agree she's she's amazing,
you know, and and whatever, because she was kind of
fatigue after going through a series of meetings around d
E and I and walking out of those meetings Phil
saying I still don't know what to do.
Speaker 2 (05:21):
Well.
Speaker 3 (05:22):
Concurrent of that, as we get to get and I
don't want to stop you there that that was really
when that whole DEI and the ib snowball in terms
of corporate America was really picking up steam. And yes,
a lot of companies struggled with it, still are struggling
with it.
Speaker 2 (05:38):
So I'm glad to hear that.
Speaker 3 (05:40):
And again we're in the past now five years as
this conversation between Scott Welch and Burgert Close happens at
Wolf King Pucks in downtown, right, Okay, so pick it.
Speaker 2 (05:52):
Up from there.
Speaker 4 (05:52):
So we we really begin to lean in and once
we understand that we have something that is that we
think is it's good and it can impact you know,
I think one thing is important.
Speaker 2 (06:01):
It's just like you have you're talking about.
Speaker 4 (06:03):
Really, if we look at you, look at me, look
at Burger, these are three people we care deeply about
our community.
Speaker 2 (06:09):
Right, And so when you.
Speaker 4 (06:11):
When you're in alignment like that, there's so much you
don't have to talk about when you come to the table.
Speaker 2 (06:15):
It's like that's a given right.
Speaker 4 (06:17):
Whatever we're going to do, it's going to help the
community at large. Now, you know, if you think about it, Okay,
this is a fund that focuses on post revenues so
more mature companies owned by folks of color, or even
helps them acquire companies.
Speaker 2 (06:32):
But while we.
Speaker 4 (06:33):
Look at it and it's for folks of color, what
happens when you actually begin to talk about our community
outside of our community? It says, wow, you know what,
West Michigan has some pretty interesting things going on. And
whether they be black, white, or people just person of
color or white, I mean, it's just it doesn't matter
in that sense, because what it communicates is that we
(06:54):
have a community that's willing to lean in and to
actually do something about the problems that we identify. And
to me, that's one of the biggest payouts of NCTF
in the sense that what it does, I always tell
it tell folks, it sends like a flare up to
the national marketplace and it says, hey, by the way,
West Michigan. Yeah, the stuff we talk about we actually
(07:17):
lean into. We want to we want to be solutions.
And so when Bergat and I talked about it, we
began to say, okay, how do we do this? So
we the documents put together with our with our colleague
who was out West kwame Anku, and from there we
said let's let's go. And so, not knowing what we
didn't know, we actually said, okay, let's let's start raising money.
Speaker 2 (07:39):
Okay.
Speaker 5 (07:39):
At that point, Phil Covid comes in.
Speaker 3 (07:42):
I was going to say, this is early twenty two, Yeah,
but you know what happened in March.
Speaker 2 (07:46):
There we go.
Speaker 4 (07:47):
So of course we were like, you know, we're going
to have all these We're going to be going to
all these different folks to ask them to consider what
we're looking at in this opportunity for investment, and before
you know it, nobody's me.
Speaker 3 (08:01):
Business, no man shut down and we had not figured
out zoom.
Speaker 2 (08:04):
Listen at that point.
Speaker 4 (08:05):
Now we're all like, we're all fluent now, right, So
we literally feel we had only one meeting in person
to discuss the fund.
Speaker 5 (08:15):
The rest of this capital was all raised.
Speaker 4 (08:18):
On Zoom and on virtual It was raised virtually, which
that to me is another thing that I think is
pretty interesting because it wasn't about dog and pony shows
and uh, what the fund is in person, you know,
and which kind of tells which Which really is important
to note that is it's the relationships that Bergott has
(08:41):
and that I have where people they know us, we're
known entities around the community, and they know that when
we put our time into something, we're serious about it
and it's never ever about us. It is really about
how we can move our community forward. And so it
was it was fairly easy.
Speaker 3 (08:59):
So I want to right there, you're on this phone
call or this this meeting, asking some pretty big movers
and shakers. You started in the Grand Rapids, West Michigan.
We're starting a new fund for business owners and people
of color. Did you get a hut at the other
(09:19):
end or I mean, I would think the overwhelming response
was great, it's about time, or talk about some of
those responses.
Speaker 4 (09:29):
We had a couple houns. Yeah, but by and large,
so I'll tell you a couple of things. So we
had a couple hons, we had a we had a majority.
We're like, oh, this is great because what it what
it what it provided people had a desire to do
something about it. We saw the civil unrest, but they
needed a vehicle. So this was an answer to a
(09:50):
challenge that everybody saw, but they did not know how
to do it. So that was one. That was another thing.
The other part of this from the huzz to the
eye get it and I want to be a part
of this. The other thing, Phil and this is and
Bergen and I chuckle about this because we had to
help people understand this is not a grant program, this
(10:11):
is a VC. This is a venture capital fund. Now
that actually speaks to the fact that when you look
at Burget and particularly I think myself raising capital when
you have a personal color at the helm of something,
they're thinking, well, you're talking numbers like this, this has
to be a grant program.
Speaker 2 (10:30):
So we had to get that.
Speaker 5 (10:31):
Idea unstuck from people's minds and they're psyche.
Speaker 3 (10:34):
Yeah, I'm so glad you said that, because I want
to unpack that a little bit. Yeah, there are a
lot of people listening to you and I have this
conversation about venture capital.
Speaker 2 (10:42):
I have no idea how this work.
Speaker 3 (10:43):
People understand a grant, you apply, here's the money, there
you go. Very rarely does it have strings attached, right,
But with venture capital funding, especially through any event venture
capital investor or fund like New Community Transformation fund. Uh,
the investors the fund puts together a pretty specific booklet
(11:06):
of expectations and then they've got.
Speaker 2 (11:09):
A piece of the business. Then is that how that works?
Speaker 4 (11:12):
So what occurs is, first of all, you look at
the grant. The grant you know, has certain deliverables, but
it's it's not necessarily a return on investment that is
in cash, right, that is in that is a financial return.
Its show us impact in this way of X Y Z. Okay, Well,
when you flip we actually look over to the other
part of this, the kind of this split screen, if
(11:34):
you will, and look at a venture capital fund. It's
about getting a return on investment for the limited partners.
These are individuals or institutions that have actually invested their
money with an expected return. So those types of expectations
are very different because it has to it has to
yield a return on investment. Otherwise it's it's it's not
(11:55):
a good fund. And so that was where and and
of course you you know, then you have to look
at all the different opportunities and companies that come across
your path, and some are good, are in alignments, some
are not. And so then once you find the ones
that are in alignment, you got to do a deep
dive into the mechanics and the leadership and the finances
(12:17):
and where it's going all those things. Right then after that,
there's a smaller group that say green light, and there's
some that say they didn't quite make the cut. But
it's not that we're saying no forever. We say we'd
like to get to yes. But you're going to need
to retool some things and then come back and talk
to us again.
Speaker 3 (12:33):
Okay, So if i'm we're speaking, by the way, with
Scott Welch here on West Michigan Weekend.
Speaker 2 (12:38):
You're an iHeartRadio.
Speaker 3 (12:39):
Scott is founder co founder and managing partner with New
Community Transformation Fund. As you're hearing us talk on the radio,
you can check out New Communityfund dot com.
Speaker 2 (12:50):
As we're talking about this.
Speaker 3 (12:52):
And if I'm a business owner or my partner, I
are business owners of color, we're starting out, how do
they approach New Community Transformation Fund. Let's flip it on
the other side. Sure, they probably have hopefully read about
you now that you're basically five years old. Talk about
that dance if you will. Hey, we got this idea.
(13:17):
Do we make the cut? I mean that this is
a really interesting thing because we're talking about and just
just ballpark. We're talking about six figures, like I need
one hundred thousand.
Speaker 4 (13:27):
Well, no, it's actually now our minimum investment is a
half a million dollars.
Speaker 5 (13:31):
Okay, so this is serious. Yeah, And here's the thing.
Speaker 4 (13:33):
So I think we do a really good job in
West Michigan around startups.
Speaker 5 (13:38):
We've got different resources.
Speaker 4 (13:40):
You know, you've got Stargarden, You've got spring gr and
they really focus on that kind of the beginning part
of the spectrum or the continuum. Well, we are actually
further down. This is post revenue. You're you know, you're
really thinking in your mind. I want to build this
so I can sell it, or I want to go
public at some point in time, and I need a
larger investment to help us kind of head a j curve.
Speaker 5 (14:03):
That's really the folks we want to talk to.
Speaker 3 (14:05):
So these are established businesses as our lavagers grow to
the next level. Yes, and half a million dollars is
the funding they need to take it to the need
they need some real capital, right and the reason salaries
and everything, yes, ok, yeah, and they're down the path now.
Speaker 2 (14:21):
Mind you.
Speaker 4 (14:21):
When we first started it, the minimum investment was two
fifty two hundred and fifty thousand, so but now we
actually have to deploy more faster and with our you know,
we'll talk later about it, but with our relationship with
Michigan Capital Network, we can do that. So it's really
about them finding us for us finding them and having
a conversation with our managing director who's going to ask
(14:43):
a lot of questions. Then we've got some FAQs they
can go through, and then they come to essentially get
to the point they make the cut. They come to
an investment committee presentation meeting, and that's where our skilled
and knowledgeable investment committee look at it, ask the questions,
and at the end of the day they get a
green light, a yellow light, or a red light, right,
(15:04):
And so that's really how that works. And if it's
yellow or red. If it's red, it's just it's not
a fit. But if it's yellow, it's not now, but
come back to us. And if it's green, you know, okay,
then let's talk about moving this now, let's get.
Speaker 2 (15:18):
Into the legal paperwork of what this means.
Speaker 4 (15:21):
And so that's how that how, that's how it ends
up being in our portfolio.
Speaker 3 (15:25):
He gave me the perfect transition to talk about this
varying new partnership announced between New Community Transformation Fund and
Michigan Capital Network to West Michigan based venture capital entities. Yes, affiliated,
they're gonna still you're still going to be two separate funds,
(15:46):
but you're going to work together. How did this whole
partnership come about, Scott, Well.
Speaker 4 (15:49):
Well, so with in both organizations, we have one individual
that actually had visibility, has visibility into both Del Grogan,
who's just really an amazing individual.
Speaker 2 (16:01):
And he saw what we needed.
Speaker 4 (16:03):
He saw that NCTF needed velocity, we needed deal flow,
we needed to deploy faster, meaning capital faster, and he
also is involved in.
Speaker 5 (16:13):
MCN with Paul Diamato and the team there.
Speaker 4 (16:16):
And so it's really interesting because to me, and it
was never really a function of if we were going
to do this together, it was how would we And
of course they're you know, bumps along the way to
kind of as you normalize what you you know, what
is congruent.
Speaker 2 (16:32):
But we got to the point where.
Speaker 4 (16:35):
It made sense n CTF we can still be very
true to our mission for Founders of Color, and we
can do everything that we've we've committed to that's on
the website that we always wanted to do from the
days of when Bergen and I first had lunch. Then
what we add with MCN is this group of very
experienced in and a knowledgeable team that also had they
(16:57):
have visibility into many many deals, right, they've done it
well for many years. And the operational back room that
we need to look at deals, to do deep analysis,
to prepare briefs, to talk to the investment committee, to
all those other operational things that we need to run
a fund well and grow a fund. They offer that
(17:20):
and so it just seemed like a natural fitting. By
the way, as you you know, you saw it. They're
already overseeing for other funds and I think their fifth
fund now, so they know what the operational part of
this is. And because they knew us and we knew them,
it was just like, well, hey, why don't we look
at this together? And it just made sense and so
here we are.
Speaker 3 (17:39):
I love this quote from you just mentioned Paul de Tomato.
He is the CEO and managing director for the Michigan
Capital Network in a new partnership now with new Community
Transformation Fund, and Tomato said, I love this quote. We
share their goal of creating access to capital for people
of color because we know that business growth, entrepreneurship and
(18:01):
capital investments strengthens our local economy, makes our state more
attractive to other businesses who want to come here. It's
just people see this happening. It's really it's infectious. It's
a good thing. Yes, And you mentioned the word. I
love the word you used. I pick up on these things,
Scott Welch.
Speaker 2 (18:20):
We know each other. Long time.
Speaker 3 (18:21):
You used a word I've I think in all the
interviews I've done over the years, described something as adding velocity. Yes,
which is just let's take a sidebar on that form
here if I need money and I fit all the
criteria for funding for new community transformation fund, yet waiting
six or eight months for it is going to kill
(18:43):
my business. Getting that next stage is that the velocity
your speaking That's exactly.
Speaker 4 (18:47):
The velocity is when you can put money into a
to a really really solid entrepreneur that's running a solid
business and all they need or maybe a couple of things,
pill they need capital, they need connections, right because we
don't just write the check. We also open up our
network to say, Okay, maybe you need warehouse space, maybe
(19:08):
you need someone that is really deep in medical maybe
I mean, whatever that might be. If you think about that,
it's I mean, that's really what made That's what makes
the Right Place so amazing now under the leadership of
Randy Thalen and prior to that with Burgett, is that
it's a connecting organization, right, And so that velocity that
we're that I'm speaking of, is that not only can
(19:29):
that entrepreneur go further faster, but we can also look
and see more deals, more businesses, and that helps us
to go further faster. Then, yeah, a trickle of five
to ten companies. Now we're literally with our with our collaboration,
we have you know, visibility into one hundreds per month,
and that's what's really well, that's what I mean, that's amazing,
(19:50):
that's so exciting, right, And that's one of the questions too.
It's funny because some folks will say, well, where where
do you how do you find your deals? And is
that that sounds like as a challenge. I'm like, actually,
even before we had our collaboration, because it's not common
for a fund like this to exist. In fact, we
were one of the firsts to exist. They find us
(20:14):
and so now the caveat is is that they have
to have some link to West Michigan. They have to
have some presence or commit to some presence in West
Michigan because again it has to affect and make our
community healthier. But once they pass that test, then we
can start talking about these other things. But that's where
(20:36):
velocity not just to the entrepreneur's business, not just to
the ecosystem of funds that focus on this now that's grown,
but also to our local economy that puts it, that
gives it additional velocity. Because a community is only as
strong as its weakest area in the marketplace and that's
(20:59):
why it's so important for this to exist.
Speaker 3 (21:02):
Scott Welch's with us, co founder of managing partner New
Community Transformation Fund online.
Speaker 2 (21:07):
You can learn a lot more at New communityfund dot com.
Speaker 3 (21:10):
And we were talking earlier about the kinds of companies
that receive funding through New Community Transformation Fund. These are
companies that are as it's described here. I like this
term early to mid stage businesses. And here's another thing
we haven't talked about. You've got a black owned business
where you've got maybe mom and dad are retiring very
(21:31):
successful business. Yes, maybe multiple brand portfolio of under their business,
but they want to turn it over to the kids.
So that transitional succession that's just filled with land mines
if you don't do it right, especially when it's a
black or brown, people of color owned business. So that's
(21:51):
where you also come along. So yeah, so that's at
a little velocity, right, the next generation get to the
next level.
Speaker 2 (21:58):
Yes, I love it.
Speaker 4 (22:00):
You feel it's one of those where let's say it's
a business that's not owned by people of color. They're
just like the parents have afforded the young the kids
a great lifestyle and kids are like, I don't want
anything there's the business, ye right, and the parents are
just like hurt, like are you kidding me?
Speaker 2 (22:15):
Then let's do this again. Let's say there's maybe.
Speaker 4 (22:18):
There's a person of color, there's a leader of color
that maybe he or she oversaw a large division at
General Motors or large division at Steelcase or whatever that might.
They say, you know, I'm not ready to retire, but
I want to do something different. Well, we can actually
take them through the paces and find because they are
businesses that are for sale.
Speaker 2 (22:36):
Right.
Speaker 4 (22:37):
We do a lot of family owned businesses here in
Western Michigan, which is really an amazing thing about our
community first of all, which is wonderful.
Speaker 2 (22:45):
So to keep them local because here's the thing.
Speaker 4 (22:48):
If a private equity fund comes in, they're gonna and
not all of them. But the nature of private equity,
which is different from venture capital, is they're going to
part and parcel it out for and the leadership and
the home office.
Speaker 2 (23:02):
It may it may.
Speaker 4 (23:04):
Leave West Michigan. We may never see it again. That's
different from what we do. We want to keep it local.
Speaker 2 (23:10):
We want to.
Speaker 4 (23:11):
Actually maybe help it optimize maybe technologically.
Speaker 2 (23:13):
It may need some investments for that.
Speaker 4 (23:15):
We've got some limited partners that are banks, so we
can get have those meetings happen, and let's oppose that
leader says, well, this current organization I like to buy it,
and it employs five hundred people. Okay, well we help
them actually go through that process. We will invest operation capital.
And then you've got a business now owned by a
(23:36):
person of color, that personal color, that employs five hundred
one thousand people.
Speaker 2 (23:40):
So that's the other part of that.
Speaker 4 (23:42):
So whether it's owned by a person of color initially
or not, it's really about keeping a business within West
Michigan to continue to strengthen our economy.
Speaker 3 (23:52):
One of the people you've helped as somebody you and
I both know Dre Wallace. Yes, it's got a company
called Opener, Opener op and are that's it. And by
the way, New Community Transformation uh fund funds businesses in
the financial, tech sector, healthcare sector, advanced manufacturing, so that's
(24:12):
that real you know, robotics, pretty serious stuff that's made
in a factory, and then it information technology, know Dre
Dre Wallace, Yes, her company Opener. Real quickly, we're we're
in our last three or four minutes here. Sure give
us the backstory of Dre and Opener coming to new
community transformation and getting that boost from me, right.
Speaker 2 (24:34):
No, so Opener.
Speaker 4 (24:35):
And you can see that what's what it is exactly
on our website, a new Community fund. But it's really
we started talking to Andrea to dre. She comes with
a just a wealth of knowledge from a technologists anyway,
and she's also played in the music and plays in
the music space.
Speaker 2 (24:54):
She's got a great double edged it's a great double yeah,
it really is.
Speaker 4 (24:58):
And so she saw an niche whereby you can bring
together venues and the artists that you can scale, which
is what we love. And she knows music and she
knows technology. So take it back a year and a
half maybe ago, and we meet at Starbucks and I
just want to know more about her, and I hear
her story and I tell at that time my managing director,
(25:20):
I said, you know, let's keep an eye on this
this woman right here, because I got a real strong
sense about where she's going. And she wants to build
this platform pill in and let it, let it the headquarter,
let it be headquartered in West Michigan. I'm like, okay,
so she's checking all the boxes. What we had to
ask her, we had to say, okay, now I'm going
(25:40):
to introduce you to our managing director and we're going
to give you some milestones to hit financially well.
Speaker 2 (25:46):
During that time, we have our new managing.
Speaker 4 (25:50):
Director who is abbott Ally, who's a part of Michigan
Capital Network. So we've been watching uh uh, you know, Dre,
We've been watching her. She hit the milestones and we're like, okay,
let's let's talk. And there was such a desire to
support her as a local entrepreneur who wants to create
this really amazing company and have it be in West
(26:13):
Michigan as a music hub. And so when we saw that,
it was easy to get to Yes, once we saw
the numbers and her financials and that she'd hit those
goals and so now we're here. And so we announced
her being one of three new investments on September the
twelfth at our annual meeting.
Speaker 2 (26:32):
Yeah. That's so exciting.
Speaker 3 (26:33):
Yeah, we're so excited. And Opener has an impact. It
can be used, you know, impact around the world.
Speaker 2 (26:39):
Oh no, it's it's so scalable. I mean wherever music
and venues are. It's pretty incredible.
Speaker 3 (26:45):
Yeah, and again, new community fund dot com if you
want to read about Dre Wallace and Opener OPI n R.
We've touched on a lot of new community transformation fund
you wear about thirty one hats, the pretty stylish hats too.
Speaker 5 (27:00):
Real.
Speaker 3 (27:00):
Quickly give us an update. Scott Welch on Mosaic film experience.
I got about a minute.
Speaker 4 (27:05):
No so mosaic. We started that thirteen years ago. Now
we just we've been so fortunate with our local communities
supporting us, Weggy Foundation, Steelcase Foundation, w K.
Speaker 2 (27:15):
Callen Foundation, and businesses.
Speaker 4 (27:17):
Well, last couple weeks ago we were informed that we
won the Sony the National Sony Create Vision Award as well.
And then we're also within that same kind of time
lit At that same timing, we were awarded the Newman's
Own Paul Newman Newman's Own Foundation Award as well to
do a national mosaic with five well we don't know
(27:37):
the number of communities, but communities across the United States.
Speaker 2 (27:40):
Wow.
Speaker 4 (27:40):
So it's just it's it's just multiplied us to a
whole other level with an amazing.
Speaker 2 (27:44):
To be there next November. Lease it's November sixth.
Speaker 4 (27:48):
Yeah, I'm pretty much yep, pretty sure it would be
at Celebration North and then our funk raiser on the seventh.
Speaker 2 (27:55):
Okay, don't miss it.
Speaker 3 (27:57):
Scott Welch, co founder managing partner New Community Transformation Fun,
Thank you, my friend. I can't believe we did this
in thirty minutes. Is unbelievable. Do He's been our guest
on the full program, West Michigan Weekend. That's our show
this week. I'm Phil Tower. Thank you for tuning in.
Speaker 1 (28:13):
You've been listening to iHeartRadio's West Michigan Weekend. West Michigan
Weekend is a production of Wood Radio and iHeartRadio.
This is iHeartRadio's West Michigan Weekend. West Michigan Weekend is
a weekly programmed designed.
Speaker 2 (00:08):
To win form and enlightened on a wide.
Speaker 1 (00:10):
Range of public policy issues, as well as news and
current events. Now here's your host, Phil Tower.
Speaker 3 (00:17):
It's West Michigan Weekend from iHeartRadio. Thank you so much
for tuning in, and happy New year. As we come
to you on the final Sunday of twenty twenty four,
I'm Phil Tower in studio with a longtime friend and
guest on this program. So just a word of warning.
If it's a friend in this program, it could go anywhere.
(00:37):
I'm just saying that. He's already laughing because he knows.
He is the one and only Scott Welch, co founder
and managing partner with New Community Transformation Fund. You can
learn more at Newcommunityfund dot com. We're going to talk
about this amazing fund, which in early January will celebrate
its fifth birthday. You've got the cake picked out or
(00:58):
you're going to do cupcakes of course. January twenty twenty five. Okay, well,
this is this is great and Scott, first of all,
thank you so much.
Speaker 2 (01:07):
For being here.
Speaker 3 (01:07):
There is news an exciting new partnership just recently announced
in early December between New Community Transformation Fund and the
Michigan Capital Network, which this is a cool thing because
I dug into Michigan Capital Network a little bit. This
is a nonprofit that is like the Umbrella Organization for
(01:29):
five angel funders.
Speaker 2 (01:31):
Really cool. Yeah.
Speaker 3 (01:33):
So, and I think most people in a small business mindset,
Scott Welch, I think most people don't understand, first of all,
how competitive it is to get funding in this Serrena,
regardless if you are black, brown, whatever your skin color,
your socio economic is.
Speaker 2 (01:51):
I mean, the game has.
Speaker 3 (01:52):
Been upped significantly, But we're going to talk about that.
But I want to back up and have you retail
for our listeners. This is a really innovative thing that
was born right here in Grand Rapids, Michigan, with a
couple of really amazing people getting together and say why
don't we have this fund?
Speaker 2 (02:11):
Wow? And how let's make it happen. What is the backstory?
Speaker 4 (02:14):
The backstory film? First of all, it's always great to
spend time with you and be here. The backstory is
burget Close, who's just a dear friend of mine and
as I said, she's kind of like a surrogate elder
sister for me.
Speaker 2 (02:27):
I really just love that.
Speaker 4 (02:28):
Lady and me coming from a trip on from Durban,
South Africa having meetings there, and we get we would
get together and we'd say, okay, what's the state of
what you're doing, what you're involved in, and you know,
how can I help and what do we want to
look at and what can we change. So literally we
were getting together downtown at Wolfgang Pucks and she says, hey,
I want to just throw this really crazy idea at you,
(02:50):
and so she began to tell me what she wanted
to do in terms of helping to create generation wealth
within communities of color. The funny part is about it,
phil is I was. I journaled and yes, what you
do and you got twenty three hours in the air.
I was journaling about the same idea. So when we
sat down for lunch, I said, you know, this is
really interesting.
Speaker 2 (03:10):
Bergett.
Speaker 4 (03:10):
Let me let me show you my phone, and my
phone had a very similar idea.
Speaker 2 (03:16):
We said, okay, we need to do something. There's something
going on.
Speaker 4 (03:19):
Yeah, something's going on right going on And so immediately
we got together. I have a friend and who became
who was on the West Coast who had done this before.
We called him in and he helped us essentially whiteboard
it and to say this is good. And we were like,
you know, our thought was our is this a good thesis?
Is this a good idea? And he said, no, this
is an excellent idea. Now, mind you feel this is
(03:42):
prior to the civil unrest. This is prior to George Floyd.
We were doing this irregardless of that that had not happened,
and so we did.
Speaker 5 (03:50):
We were actually going down this path anyway.
Speaker 4 (03:53):
And so now, as you said, five years later, you know,
having six portfolio companies, having raised over thirteen million dollars,
and you know, with a partnership that we've just announced,
we've got momentum which is really exciting. And I'll just say,
pre George Floyd, pre all the racial civil unrest in
the country, they're just so much Breonna Taylor and just
(04:17):
on and on and on. This happened in Grand Rapids, Michigan,
which traditionally been in place where it's been challenging for
people of color to rise to prominent positions, especially obtain
and you and I have talked about this on the
radio show you used to host on iHeart station, clear
channel station years ago, radio and black and white about
(04:38):
how the institutional racism with respect to so many things,
getting a mortgage, lending, so many aspects of life, it.
Speaker 2 (04:47):
Continues to be an impact.
Speaker 3 (04:49):
So then you have this idea from Burget Close, who
at the time was the president and CEO of the
Right Place exactly probably arguably Scott Welch, the most powerful
connector business person in all of West Michigan.
Speaker 4 (05:04):
Fair enough to agree, Yeah, I would agree she's she's amazing,
you know, and and whatever, because she was kind of
fatigue after going through a series of meetings around d
E and I and walking out of those meetings Phil
saying I still don't know what to do.
Speaker 2 (05:21):
Well.
Speaker 3 (05:22):
Concurrent of that, as we get to get and I
don't want to stop you there that that was really
when that whole DEI and the ib snowball in terms
of corporate America was really picking up steam. And yes,
a lot of companies struggled with it, still are struggling
with it.
Speaker 2 (05:38):
So I'm glad to hear that.
Speaker 3 (05:40):
And again we're in the past now five years as
this conversation between Scott Welch and Burgert Close happens at
Wolf King Pucks in downtown, right, Okay, so pick it.
Speaker 2 (05:52):
Up from there.
Speaker 4 (05:52):
So we we really begin to lean in and once
we understand that we have something that is that we
think is it's good and it can impact you know,
I think one thing is important.
Speaker 2 (06:01):
It's just like you have you're talking about.
Speaker 4 (06:03):
Really, if we look at you, look at me, look
at Burger, these are three people we care deeply about
our community.
Speaker 2 (06:09):
Right, And so when you.
Speaker 4 (06:11):
When you're in alignment like that, there's so much you
don't have to talk about when you come to the table.
Speaker 2 (06:15):
It's like that's a given right.
Speaker 4 (06:17):
Whatever we're going to do, it's going to help the
community at large. Now, you know, if you think about it, Okay,
this is a fund that focuses on post revenues so
more mature companies owned by folks of color, or even
helps them acquire companies.
Speaker 2 (06:32):
But while we.
Speaker 4 (06:33):
Look at it and it's for folks of color, what
happens when you actually begin to talk about our community
outside of our community? It says, wow, you know what,
West Michigan has some pretty interesting things going on. And
whether they be black, white, or people just person of
color or white, I mean, it's just it doesn't matter
in that sense, because what it communicates is that we
(06:54):
have a community that's willing to lean in and to
actually do something about the problems that we identify. And
to me, that's one of the biggest payouts of NCTF
in the sense that what it does, I always tell
it tell folks, it sends like a flare up to
the national marketplace and it says, hey, by the way,
West Michigan. Yeah, the stuff we talk about we actually
(07:17):
lean into. We want to we want to be solutions.
And so when Bergat and I talked about it, we
began to say, okay, how do we do this? So
we the documents put together with our with our colleague
who was out West kwame Anku, and from there we
said let's let's go. And so, not knowing what we
didn't know, we actually said, okay, let's let's start raising money.
Speaker 2 (07:39):
Okay.
Speaker 5 (07:39):
At that point, Phil Covid comes in.
Speaker 3 (07:42):
I was going to say, this is early twenty two, Yeah,
but you know what happened in March.
Speaker 2 (07:46):
There we go.
Speaker 4 (07:47):
So of course we were like, you know, we're going
to have all these We're going to be going to
all these different folks to ask them to consider what
we're looking at in this opportunity for investment, and before
you know it, nobody's me.
Speaker 3 (08:01):
Business, no man shut down and we had not figured
out zoom.
Speaker 2 (08:04):
Listen at that point.
Speaker 4 (08:05):
Now we're all like, we're all fluent now, right, So
we literally feel we had only one meeting in person
to discuss the fund.
Speaker 5 (08:15):
The rest of this capital was all raised.
Speaker 4 (08:18):
On Zoom and on virtual It was raised virtually, which
that to me is another thing that I think is
pretty interesting because it wasn't about dog and pony shows
and uh, what the fund is in person, you know,
and which kind of tells which Which really is important
to note that is it's the relationships that Bergott has
(08:41):
and that I have where people they know us, we're
known entities around the community, and they know that when
we put our time into something, we're serious about it
and it's never ever about us. It is really about
how we can move our community forward. And so it
was it was fairly easy.
Speaker 3 (08:59):
So I want to right there, you're on this phone
call or this this meeting, asking some pretty big movers
and shakers. You started in the Grand Rapids, West Michigan.
We're starting a new fund for business owners and people
of color. Did you get a hut at the other
(09:19):
end or I mean, I would think the overwhelming response
was great, it's about time, or talk about some of
those responses.
Speaker 4 (09:29):
We had a couple houns. Yeah, but by and large,
so I'll tell you a couple of things. So we
had a couple hons, we had a we had a majority.
We're like, oh, this is great because what it what
it what it provided people had a desire to do
something about it. We saw the civil unrest, but they
needed a vehicle. So this was an answer to a
(09:50):
challenge that everybody saw, but they did not know how
to do it. So that was one. That was another thing.
The other part of this from the huzz to the
eye get it and I want to be a part
of this. The other thing, Phil and this is and
Bergen and I chuckle about this because we had to
help people understand this is not a grant program, this
(10:11):
is a VC. This is a venture capital fund. Now
that actually speaks to the fact that when you look
at Burget and particularly I think myself raising capital when
you have a personal color at the helm of something,
they're thinking, well, you're talking numbers like this, this has
to be a grant program.
Speaker 2 (10:30):
So we had to get that.
Speaker 5 (10:31):
Idea unstuck from people's minds and they're psyche.
Speaker 3 (10:34):
Yeah, I'm so glad you said that, because I want
to unpack that a little bit. Yeah, there are a
lot of people listening to you and I have this
conversation about venture capital.
Speaker 2 (10:42):
I have no idea how this work.
Speaker 3 (10:43):
People understand a grant, you apply, here's the money, there
you go. Very rarely does it have strings attached, right,
But with venture capital funding, especially through any event venture
capital investor or fund like New Community Transformation fund. Uh,
the investors the fund puts together a pretty specific booklet
(11:06):
of expectations and then they've got.
Speaker 2 (11:09):
A piece of the business. Then is that how that works?
Speaker 4 (11:12):
So what occurs is, first of all, you look at
the grant. The grant you know, has certain deliverables, but
it's it's not necessarily a return on investment that is
in cash, right, that is in that is a financial return.
Its show us impact in this way of X Y Z. Okay, Well,
when you flip we actually look over to the other
part of this, the kind of this split screen, if
(11:34):
you will, and look at a venture capital fund. It's
about getting a return on investment for the limited partners.
These are individuals or institutions that have actually invested their
money with an expected return. So those types of expectations
are very different because it has to it has to
yield a return on investment. Otherwise it's it's it's not
(11:55):
a good fund. And so that was where and and
of course you you know, then you have to look
at all the different opportunities and companies that come across
your path, and some are good, are in alignments, some
are not. And so then once you find the ones
that are in alignment, you got to do a deep
dive into the mechanics and the leadership and the finances
(12:17):
and where it's going all those things. Right then after that,
there's a smaller group that say green light, and there's
some that say they didn't quite make the cut. But
it's not that we're saying no forever. We say we'd
like to get to yes. But you're going to need
to retool some things and then come back and talk
to us again.
Speaker 3 (12:33):
Okay, So if i'm we're speaking, by the way, with
Scott Welch here on West Michigan Weekend.
Speaker 2 (12:38):
You're an iHeartRadio.
Speaker 3 (12:39):
Scott is founder co founder and managing partner with New
Community Transformation Fund. As you're hearing us talk on the radio,
you can check out New Communityfund dot com.
Speaker 2 (12:50):
As we're talking about this.
Speaker 3 (12:52):
And if I'm a business owner or my partner, I
are business owners of color, we're starting out, how do
they approach New Community Transformation Fund. Let's flip it on
the other side. Sure, they probably have hopefully read about
you now that you're basically five years old. Talk about
that dance if you will. Hey, we got this idea.
(13:17):
Do we make the cut? I mean that this is
a really interesting thing because we're talking about and just
just ballpark. We're talking about six figures, like I need
one hundred thousand.
Speaker 4 (13:27):
Well, no, it's actually now our minimum investment is a
half a million dollars.
Speaker 5 (13:31):
Okay, so this is serious. Yeah, And here's the thing.
Speaker 4 (13:33):
So I think we do a really good job in
West Michigan around startups.
Speaker 5 (13:38):
We've got different resources.
Speaker 4 (13:40):
You know, you've got Stargarden, You've got spring gr and
they really focus on that kind of the beginning part
of the spectrum or the continuum. Well, we are actually
further down. This is post revenue. You're you know, you're
really thinking in your mind. I want to build this
so I can sell it, or I want to go
public at some point in time, and I need a
larger investment to help us kind of head a j curve.
Speaker 5 (14:03):
That's really the folks we want to talk to.
Speaker 3 (14:05):
So these are established businesses as our lavagers grow to
the next level. Yes, and half a million dollars is
the funding they need to take it to the need
they need some real capital, right and the reason salaries
and everything, yes, ok, yeah, and they're down the path now.
Speaker 2 (14:21):
Mind you.
Speaker 4 (14:21):
When we first started it, the minimum investment was two
fifty two hundred and fifty thousand, so but now we
actually have to deploy more faster and with our you know,
we'll talk later about it, but with our relationship with
Michigan Capital Network, we can do that. So it's really
about them finding us for us finding them and having
a conversation with our managing director who's going to ask
(14:43):
a lot of questions. Then we've got some FAQs they
can go through, and then they come to essentially get
to the point they make the cut. They come to
an investment committee presentation meeting, and that's where our skilled
and knowledgeable investment committee look at it, ask the questions,
and at the end of the day they get a
green light, a yellow light, or a red light, right,
(15:04):
And so that's really how that works. And if it's
yellow or red. If it's red, it's just it's not
a fit. But if it's yellow, it's not now, but
come back to us. And if it's green, you know, okay,
then let's talk about moving this now, let's get.
Speaker 2 (15:18):
Into the legal paperwork of what this means.
Speaker 4 (15:21):
And so that's how that how, that's how it ends
up being in our portfolio.
Speaker 3 (15:25):
He gave me the perfect transition to talk about this
varying new partnership announced between New Community Transformation Fund and
Michigan Capital Network to West Michigan based venture capital entities. Yes, affiliated,
they're gonna still you're still going to be two separate funds,
(15:46):
but you're going to work together. How did this whole
partnership come about, Scott, Well.
Speaker 4 (15:49):
Well, so with in both organizations, we have one individual
that actually had visibility, has visibility into both Del Grogan,
who's just really an amazing individual.
Speaker 2 (16:01):
And he saw what we needed.
Speaker 4 (16:03):
He saw that NCTF needed velocity, we needed deal flow,
we needed to deploy faster, meaning capital faster, and he
also is involved in.
Speaker 5 (16:13):
MCN with Paul Diamato and the team there.
Speaker 4 (16:16):
And so it's really interesting because to me, and it
was never really a function of if we were going
to do this together, it was how would we And
of course they're you know, bumps along the way to
kind of as you normalize what you you know, what
is congruent.
Speaker 2 (16:32):
But we got to the point where.
Speaker 4 (16:35):
It made sense n CTF we can still be very
true to our mission for Founders of Color, and we
can do everything that we've we've committed to that's on
the website that we always wanted to do from the
days of when Bergen and I first had lunch. Then
what we add with MCN is this group of very
experienced in and a knowledgeable team that also had they
(16:57):
have visibility into many many deals, right, they've done it
well for many years. And the operational back room that
we need to look at deals, to do deep analysis,
to prepare briefs, to talk to the investment committee, to
all those other operational things that we need to run
a fund well and grow a fund. They offer that
(17:20):
and so it just seemed like a natural fitting. By
the way, as you you know, you saw it. They're
already overseeing for other funds and I think their fifth
fund now, so they know what the operational part of
this is. And because they knew us and we knew them,
it was just like, well, hey, why don't we look
at this together? And it just made sense and so
here we are.
Speaker 3 (17:39):
I love this quote from you just mentioned Paul de Tomato.
He is the CEO and managing director for the Michigan
Capital Network in a new partnership now with new Community
Transformation Fund, and Tomato said, I love this quote. We
share their goal of creating access to capital for people
of color because we know that business growth, entrepreneurship and
(18:01):
capital investments strengthens our local economy, makes our state more
attractive to other businesses who want to come here. It's
just people see this happening. It's really it's infectious. It's
a good thing. Yes, And you mentioned the word. I
love the word you used. I pick up on these things,
Scott Welch.
Speaker 2 (18:20):
We know each other. Long time.
Speaker 3 (18:21):
You used a word I've I think in all the
interviews I've done over the years, described something as adding velocity. Yes,
which is just let's take a sidebar on that form
here if I need money and I fit all the
criteria for funding for new community transformation fund, yet waiting
six or eight months for it is going to kill
(18:43):
my business. Getting that next stage is that the velocity
your speaking That's exactly.
Speaker 4 (18:47):
The velocity is when you can put money into a
to a really really solid entrepreneur that's running a solid
business and all they need or maybe a couple of things,
pill they need capital, they need connections, right because we
don't just write the check. We also open up our
network to say, Okay, maybe you need warehouse space, maybe
(19:08):
you need someone that is really deep in medical maybe
I mean, whatever that might be. If you think about that,
it's I mean, that's really what made That's what makes
the Right Place so amazing now under the leadership of
Randy Thalen and prior to that with Burgett, is that
it's a connecting organization, right, And so that velocity that
we're that I'm speaking of, is that not only can
(19:29):
that entrepreneur go further faster, but we can also look
and see more deals, more businesses, and that helps us
to go further faster. Then, yeah, a trickle of five
to ten companies. Now we're literally with our with our collaboration,
we have you know, visibility into one hundreds per month,
and that's what's really well, that's what I mean, that's amazing,
(19:50):
that's so exciting, right, And that's one of the questions too.
It's funny because some folks will say, well, where where
do you how do you find your deals? And is
that that sounds like as a challenge. I'm like, actually,
even before we had our collaboration, because it's not common
for a fund like this to exist. In fact, we
were one of the firsts to exist. They find us
(20:14):
and so now the caveat is is that they have
to have some link to West Michigan. They have to
have some presence or commit to some presence in West
Michigan because again it has to affect and make our
community healthier. But once they pass that test, then we
can start talking about these other things. But that's where
(20:36):
velocity not just to the entrepreneur's business, not just to
the ecosystem of funds that focus on this now that's grown,
but also to our local economy that puts it, that
gives it additional velocity. Because a community is only as
strong as its weakest area in the marketplace and that's
(20:59):
why it's so important for this to exist.
Speaker 3 (21:02):
Scott Welch's with us, co founder of managing partner New
Community Transformation Fund online.
Speaker 2 (21:07):
You can learn a lot more at New communityfund dot com.
Speaker 3 (21:10):
And we were talking earlier about the kinds of companies
that receive funding through New Community Transformation Fund. These are
companies that are as it's described here. I like this
term early to mid stage businesses. And here's another thing
we haven't talked about. You've got a black owned business
where you've got maybe mom and dad are retiring very
(21:31):
successful business. Yes, maybe multiple brand portfolio of under their business,
but they want to turn it over to the kids.
So that transitional succession that's just filled with land mines
if you don't do it right, especially when it's a
black or brown, people of color owned business. So that's
(21:51):
where you also come along. So yeah, so that's at
a little velocity, right, the next generation get to the
next level.
Speaker 2 (21:58):
Yes, I love it.
Speaker 4 (22:00):
You feel it's one of those where let's say it's
a business that's not owned by people of color. They're
just like the parents have afforded the young the kids
a great lifestyle and kids are like, I don't want
anything there's the business, ye right, and the parents are
just like hurt, like are you kidding me?
Speaker 2 (22:15):
Then let's do this again. Let's say there's maybe.
Speaker 4 (22:18):
There's a person of color, there's a leader of color
that maybe he or she oversaw a large division at
General Motors or large division at Steelcase or whatever that might.
They say, you know, I'm not ready to retire, but
I want to do something different. Well, we can actually
take them through the paces and find because they are
businesses that are for sale.
Speaker 2 (22:36):
Right.
Speaker 4 (22:37):
We do a lot of family owned businesses here in
Western Michigan, which is really an amazing thing about our
community first of all, which is wonderful.
Speaker 2 (22:45):
So to keep them local because here's the thing.
Speaker 4 (22:48):
If a private equity fund comes in, they're gonna and
not all of them. But the nature of private equity,
which is different from venture capital, is they're going to
part and parcel it out for and the leadership and
the home office.
Speaker 2 (23:02):
It may it may.
Speaker 4 (23:04):
Leave West Michigan. We may never see it again. That's
different from what we do. We want to keep it local.
Speaker 2 (23:10):
We want to.
Speaker 4 (23:11):
Actually maybe help it optimize maybe technologically.
Speaker 2 (23:13):
It may need some investments for that.
Speaker 4 (23:15):
We've got some limited partners that are banks, so we
can get have those meetings happen, and let's oppose that
leader says, well, this current organization I like to buy it,
and it employs five hundred people. Okay, well we help
them actually go through that process. We will invest operation capital.
And then you've got a business now owned by a
(23:36):
person of color, that personal color, that employs five hundred
one thousand people.
Speaker 2 (23:40):
So that's the other part of that.
Speaker 4 (23:42):
So whether it's owned by a person of color initially
or not, it's really about keeping a business within West
Michigan to continue to strengthen our economy.
Speaker 3 (23:52):
One of the people you've helped as somebody you and
I both know Dre Wallace. Yes, it's got a company
called Opener, Opener op and are that's it. And by
the way, New Community Transformation uh fund funds businesses in
the financial, tech sector, healthcare sector, advanced manufacturing, so that's
(24:12):
that real you know, robotics, pretty serious stuff that's made
in a factory, and then it information technology, know Dre
Dre Wallace, Yes, her company Opener. Real quickly, we're we're
in our last three or four minutes here. Sure give
us the backstory of Dre and Opener coming to new
community transformation and getting that boost from me, right.
Speaker 2 (24:34):
No, so Opener.
Speaker 4 (24:35):
And you can see that what's what it is exactly
on our website, a new Community fund. But it's really
we started talking to Andrea to dre. She comes with
a just a wealth of knowledge from a technologists anyway,
and she's also played in the music and plays in
the music space.
Speaker 2 (24:54):
She's got a great double edged it's a great double yeah,
it really is.
Speaker 4 (24:58):
And so she saw an niche whereby you can bring
together venues and the artists that you can scale, which
is what we love. And she knows music and she
knows technology. So take it back a year and a
half maybe ago, and we meet at Starbucks and I
just want to know more about her, and I hear
her story and I tell at that time my managing director,
(25:20):
I said, you know, let's keep an eye on this
this woman right here, because I got a real strong
sense about where she's going. And she wants to build
this platform pill in and let it, let it the headquarter,
let it be headquartered in West Michigan. I'm like, okay,
so she's checking all the boxes. What we had to
ask her, we had to say, okay, now I'm going
(25:40):
to introduce you to our managing director and we're going
to give you some milestones to hit financially well.
Speaker 2 (25:46):
During that time, we have our new managing.
Speaker 4 (25:50):
Director who is abbott Ally, who's a part of Michigan
Capital Network. So we've been watching uh uh, you know, Dre,
We've been watching her. She hit the milestones and we're like, okay,
let's let's talk. And there was such a desire to
support her as a local entrepreneur who wants to create
this really amazing company and have it be in West
(26:13):
Michigan as a music hub. And so when we saw that,
it was easy to get to Yes, once we saw
the numbers and her financials and that she'd hit those
goals and so now we're here. And so we announced
her being one of three new investments on September the
twelfth at our annual meeting.
Speaker 2 (26:32):
Yeah. That's so exciting.
Speaker 3 (26:33):
Yeah, we're so excited. And Opener has an impact. It
can be used, you know, impact around the world.
Speaker 2 (26:39):
Oh no, it's it's so scalable. I mean wherever music
and venues are. It's pretty incredible.
Speaker 3 (26:45):
Yeah, and again, new community fund dot com if you
want to read about Dre Wallace and Opener OPI n R.
We've touched on a lot of new community transformation fund
you wear about thirty one hats, the pretty stylish hats too.
Speaker 5 (27:00):
Real.
Speaker 3 (27:00):
Quickly give us an update. Scott Welch on Mosaic film experience.
I got about a minute.
Speaker 4 (27:05):
No so mosaic. We started that thirteen years ago. Now
we just we've been so fortunate with our local communities
supporting us, Weggy Foundation, Steelcase Foundation, w K.
Speaker 2 (27:15):
Callen Foundation, and businesses.
Speaker 4 (27:17):
Well, last couple weeks ago we were informed that we
won the Sony the National Sony Create Vision Award as well.
And then we're also within that same kind of time
lit At that same timing, we were awarded the Newman's
Own Paul Newman Newman's Own Foundation Award as well to
do a national mosaic with five well we don't know
(27:37):
the number of communities, but communities across the United States.
Speaker 2 (27:40):
Wow.
Speaker 4 (27:40):
So it's just it's it's just multiplied us to a
whole other level with an amazing.
Speaker 2 (27:44):
To be there next November. Lease it's November sixth.
Speaker 4 (27:48):
Yeah, I'm pretty much yep, pretty sure it would be
at Celebration North and then our funk raiser on the seventh.
Speaker 2 (27:55):
Okay, don't miss it.
Speaker 3 (27:57):
Scott Welch, co founder managing partner New Community Transformation Fun,
Thank you, my friend. I can't believe we did this
in thirty minutes. Is unbelievable. Do He's been our guest
on the full program, West Michigan Weekend. That's our show
this week. I'm Phil Tower. Thank you for tuning in.
Speaker 1 (28:13):
You've been listening to iHeartRadio's West Michigan Weekend. West Michigan
Weekend is a production of Wood Radio and iHeartRadio.
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