MassMutual launches US$100m fund to invest in diverse-led companies

The US insurer MassMutual has launched a US$100 fund to invest in black-led start-ups across Massachusetts.

The company, which launched its first US$50m fund in early 2021, is targeting areas such as healthcare equity, economic inclusion and HR and education.

This second iteration of the fund, MassMutual says, will continue with the first fund’s mission of focusing on seed to Series B investments within black-led start-ups as well as those from rural communities and other historically overlooked backgrounds.

“This new fund will build and expand upon the MM Catalyst Fund’s success – including our innovative, consultative approach that helps address the gaps and barriers to funding,” said Jason Allen, portfolio manager of impact investments at MassMutual.

“We look forward to investing in companies led by exceptional founders who are solving problems with compassion and conviction to generate positive, measurable social and environmental impact while addressing inequality in capital markets.”

Through both the MM Catalyst Fund and the First Fund Initiative, MassMutual’s total impact investment commitment has more than doubled to US$300m in just over two years.

Liz Roberts, head of impact investing at MassMutual, said: “As one of the first movers in this space, we are excited to continue supporting entrepreneurs in our home state of Massachusetts as well as expanding our focus to select investment opportunities in diverse-led businesses across the country.

“Importantly, we hope that our continued commitment and investments in diverse and overlooked companies will inspire other firms and institutions to follow suit so we can collectively reduce structural barriers and advance racial equity.”