The people and projects shaping an economically stronger Milwaukee
When an entrepreneur has a vision that could transform their community, access to capital can be the catalyst that turns a good idea into real impact. In southeastern Wisconsin, a growing group of changemakers is proving what’s possible when the right resources meet the right people at the right time.
Through a model known as impact investing, local businesses and organizations are securing the capital they need to grow, thanks to the Greater Milwaukee Foundation. The Foundation has been using this method since 2017, helping to fuel opportunity, ownership and resilience in communities that have long been denied equitable access to capital. This is how the Foundation advances its vision of a Milwaukee for all: by investing in people and projects that create lasting, community-centered change.
Structured as loans, equity investments or guarantees, impact investments provide timely support while ultimately delivering a financial return so funds can be reinvested in new projects. This creates a cycle of sustainability.
“The beauty of impact investing is that the money keeps recycling in communities where private and public funding have been inadequate,” said Kermiath McClendon, the Foundation’s impact investing manager. “It’s uplifting how this project can impact not just the business owners themselves but our overall economic vitality.”
Since 2017, the Foundation and its donors have committed more than $22 million through its impact investing program, $4 million of which has come from donor contributions. It has invested in 19 ZIP codes in southeastern Wisconsin and helped create or retain 852 full- and part-time jobs and counting. Ninety-nine percent of loans are in good standing.
Some of the Foundation’s clients reflect on how far they’ve come and where they are going.
Sherman Phoenix Foundation
The Sherman Phoenix Foundation was part of the Foundation’s original impact investing pilot program in 2017. A $300,000 Foundation loan provided first mortgage financing for the rehabilitation and renovation of a former BMO Harris Bank that was damaged during the civil unrest in Sherman Park in 2016. The building reopened in 2018 as an entrepreneurial hub.
“Sherman Phoenix was developed as a retail location to allow Black small business owners to grow their businesses and generate jobs,” said Stacia Thompson, president and CEO of the Sherman Phoenix Foundation. “It quickly became the heartbeat of the community.”
The 27 vendors in the marketplace there range from food and drink purveyors to clothing and art retailers. Regular community events include a community business academy, line dance classes and an annual community baby shower.
Since 2018, Sherman Phoenix has been home to 61 Black-owned businesses; of the original 27, 86 percent are still operating. Its “grow and go” model supports them as they incubate and then move to stand-alone spaces, such as Funky Fresh Spring Rolls and Lush Popcorn have done.
“We hate to see them leave, love to see them go,” Thompson said.
Colorful Connections
Colorful Connections, a diversity and equity recruiting and retention firm, works with two types of clients: professionals from historically marginalized communities who are navigating the next move on their professional journey and business leaders seeking to create inclusive workplace cultures to improve talent retention and maximize performance.
Colorful Connections received a $50,000 small business loan from the Foundation in 2020.
“The loan was critical to us,” said Morgan Phelps, founder and CEO. “Work was picking up, but as an early-stage company, we didn’t qualify for a bank line of credit or a loan.”
She said the loan helped the firm stabilize and bring on additional contractors as business grew.
The firm has nearly 4,500 candidates in its database. Of candidates they have placed, 73 percent are people of color and 66 percent identify as Black. On the consulting side, Colorful Connections provides, on average, 24 consultations a month to businesses and nonprofits in fields as diverse as media, neighborhood buildingand marketing.
Kermiath McClendon found his job with the Foundation through Colorful Connections.
“Many career placement firms treat you like a box to check off their list,” he said. “Colorful Connections genuinely cares about your career aspirations and matching them with empowering opportunities.”
Business leaders who have used Colorful Connections’ consulting services praise it as well.
“Their biggest impact has been on building trust and empathy across our organization,” said Devin Martin, talent acquisition director for Bader Rutter, a marketing agency.
Midpoint Ventures
Midpoint Ventures is an artificial intelligence consulting firm that provides education and training to businesses that use generative AI.
“Where businesses are having trouble is that they might have five to 10 pilot users who use the AI tools effectively, but they don’t know how to train everybody else,” said Israel Squires, CEO and co-founder. Midpoint’s client-customized software addresses that issue.
Midpoint received a $300,000 loan from the Foundation in fall 2023. Squires said the capital infusion came at the right time for the company to become established as a consulting firm.
“Seed funding through the Foundation is going to have a generational impact on workers in southeastern Wisconsin,” he said.
The firm plans to make at least seven new hires, onboard 50,000 workers through its ElevateU platform and expand beyond Wisconsin. Since getting its impact investment, the firm has trained over 4,000 workers, primarily in manufacturing companies.
“We’re putting people in a position to get jobs they never thought they could get,” Squires said. “That will make a big impact on the racial wealth gap.”
From rebuilding a neighborhood hub in Sherman Park to building a more inclusive workforce and pioneering AI education, these ventures show how targeted investments can ripple far beyond the bottom line.