IIE.VC

Features Capital is proud to have been a part of the inaugural cohort of #CapitalEntrepreneurs selected by IIE.VC part of the Milken Institute. When I was invited to participate in the U.S. Department of the Treasury #SSBCI meeting in Washington, DC, as the only venture firm and healthcare investor in the room at Treasury, I realized that as an early-stage MedTech venture firm, Features Capital is bigger than we ever imagined. Thank you to all our visionary LPs and partners. Jeff Chu and I appreciate IIE.VC and Milken's leading initiatives that will create transformative change for centuries to come. Special recognition to: chris trinetti Marin Ping Troy Duffie Jeff Stout Jessica Milano Karl Fooks, Sara Zulkosky Vermont Economic Development Authority (VEDA) I highly recommend visiting the Vietnam Women's Memorial, spearheaded by Diane Carlson Evans, honoring the nurses and women of the United States who served in the?Vietnam War. https://lnkd.in/eix_A6EU

S/o to everyone who reached out and engaged on this post about reclassifying emerging fund managers as "capital entrepreneurs." This effort is gaining some momentum thanks to a group of cross-sector leaders who are now coming together to turn ideas into outcomes. Reclassification is a crucial step that would correct capital allocation inefficiencies, unlock access to funding programs, and stimulate economic growth. But reclassification is just one of several tangible actions we can take. Here are two other potential policy changes that can make a significant impact: --- 1?? Offer Tax Incentives for Investments Made By and Into Emerging Fund Managers ("Capital Entrepreneurs") Why?- Providing tax credits or deductions for investments made by and into capital entrepreneurs encourages the flow of capital into innovative businesses across all U.S. regions. This policy makes investing more attractive to a broader range of investors, increases the availability of capital, and promotes nationwide economic growth by enabling investments in startups and businesses located in underfunded states and regions. ?? What It Looks Like in Action: ? Investors (Limited Partners) receive tax benefits, making investments in capital entrepreneurs more appealing. ? Capital entrepreneurs gain increased resources to invest in innovative businesses. ? Capital flows more evenly across the country, reaching startups and businesses in a wider range of locations. --- 2?? Create Specialized Programs Within Federal Agencies to Support Emerging Fund Managers ("Capital Entrepreneurs") Why?- Developing tailored programs within federal agencies, such as the Small Business Administration (SBA), can address the unique challenges faced by capital entrepreneurs. By providing access to funding, training, and resources, these programs empower capital entrepreneurs to invest effectively across different regions, stimulating local economies and fostering innovation. ?? What It Looks Like in Action: ? Grants, loans, or guarantees specifically designed for capital entrepreneurs provide essential working capital. ? Training and resources help capital entrepreneurs navigate regulatory landscapes and scale their operations. ? With better support, capital entrepreneurs can invest more effectively nationwide. #EmergingManagers #CapitalEntrepreneurs #PolicyChange #EconomicGrowth #Innovation #USA

?? U.S. Capital Allocation = MARKET FAILURE ?? Less than 2% of the ~$87 trillion in U.S. assets is managed by a group that represents over 50% of the nation's population. This isn’t just a social issue—it’s a MARKET FAILURE that’s stifling innovation, limiting job creation, drying up liquidity, choking economic growth, and putting America's global competitiveness at risk by failing to invest where it's needed most. By reclassifying emerging fund managers as entrepreneurs—Capital Entrepreneurs—we could unlock billions in funding, correct this massive misallocation, and drive the next wave of American innovation, economic expansion, and global leadership. It’s time for action. #InclusiveCapitalism #CapitalAllocation #EmergingManagers #VentureCapital #EconomicGrowth #Innovation #PolicyChange

This has been one of the busiest seasons of my life in all aspects, but I’m incredibly grateful for the impact we’re driving Milken Institute. At the top of the list is some big news.? In June, we announced at The White House and the U.S. Department of the Treasury that the Milken Institute became the home?for the Initiative for Inclusive Entrepreneurship (IIE), a groundbreaking national effort to expand access to capital for small businesses owned by socially and economically disadvantaged individuals (SEDI). IIE harnesses the power of public-private collaboration to ensure the equitable implementation of the U.S. Department of the Treasury’s $10 billion?State Small Business Credit Initiative(SSBCI), 40% of which is designated for businesses owned by socially and economically disadvantaged individuals (SEDI). This process was a months-long sprint that required late nights, lots of reading and an incredible deal team including Rachel Halfaker, Chelsea Wells, Jeff Valliere, and Mike Piwowar. We have some incredible partners and colleagues at Nowak Metro Finance Lab, IIE.VC, The Aspen Institute, Mission Driven Finance?, Founders First Capital Partners, Next Street, Scale Link, and JumpStart Inc. that led an incredible 18-month pilot led by Hyphen, resulting in?$215 MM in deployed capital, reached 7,931 organizations, and provided 2,223 hours of technical training. Excited to share over the next few weeks what we’ve been working on over the last 8-9 months and catch up on what’s been a four-month hiatus from LinkedIn. More to come!

By 2045, the poles of America will flip as non-Hispanic?whites will make up less than 50% of the U.S. population for the first time in 250 years. Are we building the financial systems to support this future? Tosh E., Head of Silicon Valley Bank's Catalyze 2045 initiative, is paving the way. Last week,?IIE.VC?and the Milken Institute?had the pleasure of supporting the?Congressional Black Caucus Foundation's inaugural Connective Capital Consortium in partnership with?Silicon Valley Bank, spotlighting the collective efforts of Black capital allocators and asset managers to advance equity and access in the industry, and its positive impact on ROI. We discussed why this work is important, and its ripple effects across the asset management sector.

Fund of Funds are a powerful way for institutional investors to support emerging capital allocators and innovators at scale, while achieving diversification and reducing risk across multiple underlying funds. Felix Chevalier, Co-Founder of the Urban Capital Network, breaks this down. Last week,?IIE.VC?and the?Milken Institute?had the pleasure of supporting the?Congressional Black Caucus Foundation's inaugural Connective Capital Consortium in partnership with?Silicon Valley Bank, spotlighting the collective efforts of Black capital allocators and asset managers to advance equity and access in the industry, and its positive impact on ROI. We discussed why this work is important, and its ripple effects across the asset management sector.

To solve big problems and close wide gaps, we need policy, philanthropy, and capitalism working together. Jay Lundy, Managing Director of NAACP Capital, explains how the NAACP is driving impact through a new market-driven approach. Last week,?IIE.VC?and the?Milken Institute?had the pleasure of supporting the?Congressional Black Caucus Foundation's inaugural Connective Capital Consortium in partnership with?Silicon Valley Bank, spotlighting the collective efforts of Black capital allocators and asset managers to advance equity and access in the industry, and its positive impact on ROI. We discussed why this work is important, and its ripple effects across the asset management sector.

Wealth creation for capital allocators starts with access to capital—and access to capital starts with being in the room. Derrick Johnson, President & CEO of the NAACP, is leveraging the Fund of Funds to open these doors for dozens of emerging fund managers who have historically been excluded. Last week,?IIE.VC?and the?Milken Institute?had the pleasure of supporting the?Congressional Black Caucus Foundation's inaugural Connective Capital Consortium in partnership with Silicon Valley Bank, spotlighting the collective efforts of Black capital allocators and asset managers to advance equity and access in the industry, and its positive impact on ROI. We discussed why this work is important, and its ripple effects across the asset management sector.

If you change the face of capital allocators, you can change the world. Troy Duffie, Director of Financial Markets at the Milken Institute, shares how?IIE.VC - now under the Milken Institute - is using grant capital to turn vision into reality. Last week, IIE.VC and the Milken Institute had the pleasure of supporting the Congressional Black Caucus Foundation's inaugural Connective Capital Consortium in partnership with Silicon Valley Bank, spotlighting the collective efforts of Black capital allocators and asset managers to advance equity and access in the industry, and its positive impact on ROI. We discussed why this work is important, and its ripple effects across the asset management sector.

Great opportunity for emerging VCs to stand up and be (confidentially) counted, as we look to bring maximum range of talented human capital forward into the industry. Respond to Venture Forward's survey by Sept 27! CC: IIE.VC