Financing the Economies of the Future​

Our work is driven by the belief that profit and purpose can co-exist. SecondMuse Capital is the financial management arm of SecondMuse, investing in businesses and real estate that help create new economies that are growing, resilient, and inclusive. Based on a decade of experience in building economies and supporting entrepreneurs around the world, 2MC strategically influences and deploys capital. 2MC does this by identifying, incubating, and investing in opportunities that advance social and environmental justice. Whether acting as a general partner in a fund or gathering a diverse group of investors to co-invest in new markets, we take a blended approach to capital.

WHY A BLENDED APPROACH TO CAPITAL

Blended capital combines different types of financial instruments and pools capital from investors with different types of objectives and risk-return appetites. By weaving together government contracts, philanthropy, and traditional investment dollars we are better able to drive returns, reduce risk and generate large scale positive impact. A blended approach requires thinking about capital in a new way. Creating new financing tools and investment strategies that go beyond the status quo. Where possible we seek to partner with like-minded organizations to increase our impact.

FUND MANAGEMENT

Investing in companies and real-estate that create a positive social and environmental impact

FUND DESIGN

Landscape analysis, financial mechanism design, stakeholder alignment, investment sourcing, and de-risking strategies

PILOTING NEW APPROACHES TO CAPITAL

Designing and testing new approaches to financing the early development of innovation and entrepreneurial ecosystems

INVESTMENT THESIS

  • A collaborative, diverse and inclusive approach to capital helps to increase returns & decrease risk.
  • Blended capital allows us to uncover new markets that previously had been deemed uninvestable.
  • Complex social and environmental challenges provide unique opportunities for impact and investment returns.
  • We invest in nascent economies where we can impact their culture to foster connection, innovation, and trust. 
  • Partnering with incubators and accelerators provides market intelligence that may de-risk investment and amplify positive impact. 

OUR PORTFOLIO

LIGHTSHIP CAPITAL FUND

Lightship Capital and SecondMuse Capital announced the largest-ever venture capital fund dedicated to investing in Midwest, minority-led startups. The Lightship Capital Fund will also be the largest initial VC fund run by a Black woman to date. The fund will focus on investing in underrepresented minorities: BIPOC, LGBTQA+, and people with disabilities. Our hope for the fund is to make the VC world accessible to all founders and to provide much-needed funding that allows minority-founded startups not only to survive, but to thrive, and to create a more equitable future.

FUTURE ECONOMY LAB

The Future Economy Lab (FEL) is a collaborative, membership-based research and design lab. FEL is a new approach to financing the R&D and early support of innovation and entrepreneurial ecosystems by engaging diverse local stakeholders, including investors, governments and entrepreneur support organizations. It aims to innovate the financing and development of new economies — ones that are inclusive and resilient. The first iteration of this Lab is happening in Montreal where the focus is on creating an inclusive and resilient climate economy in Quebec.

OCEAN PLASTICS FUND

2MC is an Operational Partner of Circulate Capital, an impact-focused investment management firm, financing companies, projects and infrastructure that prevent ocean plastics. SecondMuse and The Circulate Initiative launched The Incubation Network to accelerate solutions to ocean plastic waste by partnering with existing incubators. To date, the fund has raised $106 million across governments, investors, foundations and corporations.

ZEBRAS UNITE CAPITAL

2MC has partnered with Zebras Unite, a global ethical and inclusive business movement with 4,000+ members, to design, raise and operate a debt and equity fund. The fund will utilize a blended capital approach to support businesses across industries and geographies. It will be centrally coordinated and connected to local Zebra chapters, who will provide deal flow and support character-based due diligence.

BATTLE CREEK STARTUP FUND

To help bridge seed capital gaps, 2M is managing education awards for early-stage ALICE entrepreneurs based in Battle Creek, MI. The awards, funded by the W.K. Kellogg Foundation, give ALICE entrepreneurs runway to develop a business model and establish a market while honing new skills in business planning and management. Provided in tandem with training and technical assistance, the awards are meant to increase entrepreneurs’ ability to manage finances, sustain a new business, and in turn derisk subsequent rounds of financing from traditional forms of capital like business loans or equity investments.

KNOWLEDGE & INNOVATION EXCHANGE FUND

The Knowledge and Innovation Exchange (KIX), a flagship program for the Global Partnership for Education, is the only global fund that focuses on strengthening education systems in the Global South in order increase the number of students in schools and their learning opportunities. SecondMuse and Bivee designed the blueprint for KIX and strategically supported the launch of the $60 million KIX fund and a separate $60 million Advocacy and Social Accountability fund.

SOUTHWEST FLORIDA IMPACT FUND

2MC is General Partner in SW Florida Impact Partners LLP, a community impact fund focused on reducing inequalities by raising the profile and capacity of female, minority and traditionally marginalized entrepreneurs. Total fund capitalization will stand at $30 million on closing and will deploy capital to real-estate for anchor institutions — schools, grocery, banks, and healthcare facilities—and small businesses. This stands as an example of a new model for community redevelopment, one that engages and builds upon the knowledge and experience of local stakeholders.

M-CORPS STARTUP FUND

SecondMuse Capital is designing a founder-centric, flexible capital fund to address critical funding gaps for cleantech hardware companies. The fund will provide working capital for these startups to get to market, and provide concrete examples of how flexible capital can increase the success of cleantech hardware startups.

Interested in learning more?
Contact us at capital@secondmuse.com.

 

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