1863 Ventures, a nonprofit organization dedicated to providing capital and mentorship to early-staged underrepresented founders, is transitioning to a for-profit entity called New Majority Ventures. This significant change, announced by founder Melissa Bradley, marks a new chapter in the organization's mission to support New Majority founders.

Since its inception eight years ago, 1863 Ventures has made a notable impact, supporting over 5,000 founders and creating 2,000 jobs. The organization has managed two funds: 1863 Venture Fund I, which invested in 57 startups across the US, and the Innovation Equity Impact Fund (IIEIF), which invested in 40 DC-focused companies. Notable investments include edtech Lingo, wellness company The Black Girl Doctor, and consumer company Harlem Candle Co.

According to Bradley, the transition to New Majority Ventures will bring about few changes, with the organization remaining charitable and continuing to offer programs and conduct research. The affiliated funds will operate as separate LLC entities, and the mission to support the creation of $100 billion in "new wealth by and for New Majority founders by 2023" remains unchanged.

However, the organization will undergo some staff reductions, and its name will change to New Majority Ventures. The new entity will expand its scope to work with "ecosystem builders" like accelerators and incubators, as well as partner with "other institutions" such as universities to grow its research offerings.

Notably, New Majority Ventures will not create new funds at this time, instead relying on its fiscal sponsor, which is currently in talks with The Tide Foundation. This marks a shift from the traditional limited partner model used by 1863 Ventures.

Bradley emphasized that the new business model will allow New Majority Ventures to focus on supporting the field with content and research, rather than running its own programs. "I believe we can do more to advance New Majority founders under a different business model," Bradley said, highlighting the importance of working with ecosystem partners to drive growth and innovation.

The transition of 1863 Ventures to New Majority Ventures signals a significant shift in the organization's approach, one that is likely to have far-reaching implications for the startup ecosystem. As the organization expands its scope and partners with new entities, it will be interesting to see how this change affects its mission to support underrepresented founders.

One thing is certain: New Majority Ventures' commitment to supporting New Majority founders remains unwavering, and its new business model is poised to drive even greater impact in the years to come.