Betsy Fore, inspired by a childhood gift of a Velveteen Rabbit, has launched her new venture firm, VelveteenVentures. The firm officially came to life on Tuesday, marking a significant transition for Fore, who has spent nearly two decades building companies herself. She expressed her motivation to TechCrunch, stating her belief that she could create a greater impact by shifting to the investor side of the table, helping numerous founders build life-changing companies rather than focusing on just one.

Fore's entrepreneurial journey includes notable ventures such as Tiny Organics, a baby food company, for which she achieved the distinction of becoming the first Native American woman to raise a Series A round. She also developed the app builder Wondermento. Velveteen Ventures, based in the Midwest, aims to invest in 15 to 20 companies, with typical investments ranging from $500,000 to $4 million in seed and Series A rounds. The firm's focus sectors include healthcare, climate, consumer, and community.

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The launch of Velveteen Ventures is particularly noteworthy as it establishes Betsy Fore as one of the few Native American women to found a venture firm in the U.S. This addresses a critical disparity in the venture capital landscape, as statistics for funding Native American founders have historically been so low they were difficult to track accurately. Fore has actively worked to change this through her nonprofit, which provides mentorship and opportunities to Native American founders.

Describing the fundraising process, Fore noted the thrill of achieving institutional closes from the outset, attributing it to the support of purpose-driven institutions that recognize strong returns on investment can also be found in the Midwest. She emphasized that the firm connects with limited partners (LPs) who are specifically seeking out their unique approach.

Fore is joined at Velveteen Ventures by a diverse team. Karla Brollier, also of Native descent and hailing from Patagonia, will spearhead the firm’s climate investments. Katherine Stabler, with decades of experience as an attorney in private funds, joins as chief operating officer.

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In a commitment to her heritage, Fore stated her intention to honor her ancestors through the fund's operations, revealing that a portion of Fund I’s carry will be directed to Native American tribes. While clarifying that Velveteen is not strictly an “impact fund,” Fore is determined to demonstrate that profitability and purpose can indeed go hand in hand. Prior to launching Velveteen Ventures, Fore gained experience at XFactor Ventures and LongJump Ventures, and is also preparing to publish a book on entrepreneurship and venture capital.