The Forge North startup coalition has announced that the MSP Equity Fund — the first known venture capital "fund of funds" in the country, made specifically to invest across race, location, and gender — has reached its first close.

The first close of a fund is the date on which a fund first accepts capital commitment, or when investors can begin making a promise that they will invest into the fund over a period of time. As a “fund of funds,” the MSP Equity fund is a pooled investment fund that invests in other funds.

They are supported by gener8tor, a business accelerator, and the GREATER MSP Partnership, a regional business accelerator. Its lead investors are Allianz Life, Allina Health, Xcel Energy, and Abōva, and the fund will be led by gener8tor partner Al Cornish.

The goal of this new fund is to invest in local and national venture-capital funds that invest portions of their capital into startups led by Black, Brown, and woman entrepreneurs headquartered in Minnesota, or are willing to relocate to the state.

“Inclusion is the imperative in this next era of innovation. We believe the MSP Equity Fund will provide the necessary capital and support to sustain a growing, inclusive innovation economy in the state.” said Al Cornish.

The MSP Equity Fund intends to capitalize on the missed opportunity of under-invested, high-growth, leading startups led by people of color and women.

One of the Fund’s strategies will be to invest in top diverse-asset-management firms, which are firms that position people of color in their managerial ranks. The Fund holds the goal of turning Minnesota into a top region for venture capital managers to invest into and to create a flourishing economic ecosystem for Black, Brown, and women entrepreneurs.

“The MSP Equity Fund is an engine for growth and innovation for our region’s economy,” said President and Chief Executive Officer of the GREATER MSP Partnership Peter Frosch, in a statement.

“We are encouraged to see so much support for this strategically important investment that improves access to capital for under-represented founders and entrepreneurs,” he concluded.