The MassMutual Catalyst Funds (MMCF) I & II — a $150 million commitment to increase diversity in, and access to, venture capital and invest in innovative products and services that advance economic and social mobility.
Increasing investments in underserved businesses
At MassMutual, we’re committed to fueling innovation, creativity, and problem-solving to benefit the needs of all Americans. We believe this begins with creating financial opportunities where historic disparities exist. That’s why we established the MassMutual Catalyst Fund (MMCF) I & II — a $150 million commitment to increasing diversity in, and access to, venture capital and investing in innovative products and services that advance economic and social mobility.
Building on the first MM Catalyst Fund launched in 2021, MMCF’s latest Fund II will scale nationally and create further impact momentum. We know the mission to increase access to capital to overlooked founders and changing the ratio of who is funded in venture capital is not an easy challenge. That's why we are expanding our focus and working with like-minded partners, particularly companies with the potential to make a significant social impact in certain areas. We will continue to focus investing in MA companies and also selectively invest alongside fund managers within the First Fund Initiative at a national level.
- We invest in Seed through Stage B companies. As we assess businesses, we consider not only financial return, but their potential to advance racial equity, reduce the rural-urban divide, and make an economic impact.
- While we are industry agnostic and focus on the founding team, we seek to invest in the following verticals: health tech, climate tech, Future of Work, and fintech.
- MMCF’s status quo alternatives to sourcing, screening and selecting deals, as well as supporting our portfolio companies are key to finding and funding companies in a more expansive way.
Investing in diversity
The Catalyst Fund is powering progress in a world where women and people of color only manage 1% of the 70 trillion of capital in the United States. We’re making an impact in across the US and in Massachusetts where only .4% of funding goes to Black founders.*
We’re passionate about creating change and prioritizing companies with social impact built into their DNA. That means that as their business grows, their impact grows too. As we assess businesses, we consider not only financial return, but potential to advance social mobility and racial equity, reduce the rural-urban divide, and make an economic impact in Massachusetts and beyond.
Industry agnostic and founding team driven
We look for strong financial and impact return with an industry preference in the following areas:
- Healthcare Equity: Healthcare technologies that reduce disparities in health outcomes across the population
- Economic Inclusion: Availability and equality of opportunities to access financial goods and services
- Climate: Technologies that ensure the transition to clean energy is fair, inclusive and economically beneficial for all
- Future of Work: HR and education technologies that encourage workforce participation
What makes our process different?
Impact investing requires critical thinking, not checking boxes. We’re committed to building innovative approaches and alternatives in:
- Sourcing: Our online inquiry form lowers barriers to accessing our funding.
- Screening: We look twice - taking a consultative approach, with an emphasis on transparency and trust.
- Selection: We prioritize companies with scalable business models tied to social impact which comes in many shapes. That could mean removing structural barriers like access to better education or finance, or it could mean creating quality jobs in a rural area.
- Value Add: Our passionate team is dedicated to our entrepreneurs' success. We consult regularly with our portfolio companies at key intersections and provide strategic insight, leverage our MassMutual network, facilitate introductions to other investors and are continually expanding the ways we add value to our wide spectrum of portfolio companies.
Rooted in venture. Built for impact.
We like to think of the Catalyst Fund as having VC hardware and impact software — meaning, while we’re backed by MassMutual’s more than 170 years of financial strength, we’re also constantly evolving to maximize our social and economic impact. Together, our impact investing team has a total of 55 years of expertise, with backgrounds ranging from founding companies to traditional investment management to overseeing global startup accelerators.