For Skot Welch, the journey to co-founding the
New Community Transformation Fund (NCTF) began in 2019 over a meal with a friend, Birgit Klohs, the former longtime leader of The Right Place, West Michigan’s economic development organization.
Welch and Klohs, who had been friends for more than 25 years, were talking about generational wealth gaps in communities of color and how these disparities could be addressed to strengthen Grand Rapids. That conversation sparked an idea that has grown into a transformative venture capital fund, driving investments in mid-stage businesses owned by entrepreneurs of color.
“Birgit and I had been talking about generational wealth and community gaps for years,” Welch recalls. “On this particular occasion, we landed on the same idea almost simultaneously. I had just returned from Durban, South Africa, where I’d been reflecting on what I could do for my community. She shared her thoughts, and it clicked: We needed to act.”
Closing a gap
From there, the two brought in a consultant to craft the fund’s framework, launched their vision, and began raising capital.
Welch says the official announcement predated the social unrest following the murder of George Floyd, but the timing underscored the fund’s need.
“This wasn’t performative,” Welch says. “This was something we had embodied and put in our hearts long before. It was authentic, not reactionary.”
NCTF’s mission is to address the racial wealth gap by investing in entrepreneurs of color who need significant capital to scale their businesses. With investments ranging from $250,000 to $1.5 million, the fund focuses on industries such as financial technology, health care, advanced manufacturing, and information technology. To date, NCTF has secured nearly $12 million in capital commitments and invested in seven businesses.
“We started with the belief that our community needed a robust pipeline of investment opportunities for entrepreneurs of color,” Welch explains. “These aren’t startups; they’re businesses ready to scale at a higher rate. We’re helping to create generational wealth that benefits families and the entire region.”
Welch notes that NCTF’s investments go beyond capital.
“We’re focused on building strong, healthy businesses. It’s not just about the money, it’s about ensuring these companies are poised for long-term success,” he says.
Adding ‘horsepower’
Understanding the need for additional resources, NCTF recently entered into an affiliation agreement with
Michigan Capital Network (MCN), a Grand Rapids-based investment fund management organization.
MCN Ventures provides guidance, due diligence, compliance support, and administrative services for NCTF’s investment initiatives.
“As any organization grows, you reach a point where you see the opportunity to add horsepower,” Welch says. “In venture capital, you need capital, great entrepreneurs, deal flow, and strong analysis to make informed investment decisions. MCN brings a team with deep expertise and access to more opportunities at a faster rate. It’s the support we need to go further, faster.”
The collaboration was facilitated by Dale Grogan, a managing partner at MCN, who proposed the partnership. It has already yielded tangible results.
“Within 60 to 90 days of working together, we made three additional investments,” Welch shares. “That proved this was the right direction for us.”
For Welch, the work of NCTF goes beyond individual investments. It’s about reshaping the economic and social fabric of West Michigan to make it a more inclusive and attractive place for businesses and families.
“If all parts of a community aren’t healthy, the whole community isn’t healthy,” Welch says. “We need entrepreneurs and business owners of color to transfer wealth, build wealth, and create jobs in ways that attract national attention. We want people to look at West Michigan and say, ‘I could move there, start a business there, or grow my business there.’”
BAMF Health, a Grand Rapids firm that calls itself the first vertically integrated platform for molecular imaging and radiopharmaceutical therapy, is one of NCTF’s investments, exemplifies this vision. Based in downtown Grand Rapids and owned by Anthony Chang, BAMF has created significant local employment opportunities and recently expanded into Metro Detroit.
“It’s businesses like BAMF that demonstrate the power of investing in our community,” Welch says. “These companies are making a real impact by creating jobs and driving economic growth.”
Building community
As NCTF grows, Welch says he’s focusing on scaling its impact while staying true to its mission.
The fund’s minimum investment has increased from $250,000 to $500,000, allowing it to attract larger, more established businesses.
“Our goal is to build a pipeline of strong, scalable businesses,” Welch says. “We want to ensure they’re healthy and hitting their milestones so they become candidates for going public or being acquired if they so desire. That’s when the returns come, and that’s when we see the full impact of our work.”
Welch is also excited about the ripple effects of NCTF’s efforts. The fund’s work is attracting entrepreneurs from across the country to consider West Michigan as a place to grow their businesses.
“We’re meeting entrepreneurs from Texas, Illinois, and other states who now have West Michigan on their radar,” Welch says. “We’re doing this in a way that builds our community and makes it a place people want to call home.”
Welch’s commitment to community extends beyond his work with NCTF.
As founder and president of the GMC-NBMBAA and
Mosaic Film Experience and a longtime leader in organizations like the Greater Michigan Chapter of the National Black MBA Association, Welch has dedicated his career to fostering connections and opportunities for others.
“When people move to a community, it’s not just about the job,” Welch says. “It’s about connectivity and what they see for their family. That’s why we’re focused on building a community where everyone feels they belong.”