EMPowering Economic Equity: BMO Works to Scale Up Black and LatinX Businesses
by Jim Slama, Naturally Chicago Managing Director
Naturally Chicago was pleased to sponsor the BMO EMPowering Economic Equity Summit earlier this month at their new Chicago headquarters. The event was hosted by BMO Vice Chair Eric Smith and brought together leading entrepreneurs, lenders, investors, politicians and thought leaders to grow opportunities for diverse founders.
It also celebrated the success of BMO’s EMPower program, which has deployed more than $6 billion in investing, giving and engagement in local communities to support inclusive economic opportunity.
BMO’s work with Don Thompson, CEO of Cleveland Avenue (CA), embodies the bank’s commitment to working with diverse leaders. Their collaboration was highlighted at the summit during a conversation with Thompson and Smith.
Eric Smith (left) of BMO and Don Thompson of Cleveland Avenue.
After Thompson retired as CEO of McDonald’s, he and his wife Liz Thompson decided to create CA as an investment firm focused on earlier-stage food and technology businesses. Symbolically, Cleveland Avenue is the street in Chicago near the Cabrini-Green housing project where both Liz and Don grew up, although they first met as freshmen at Purdue University.
Even with his experience leading the world’s largest restaurant chain, Don was struggling to get the capital and high-level financial expertise the venture needed. He approached BMO CEO Darryl White about collaborating, and the bank stepped in as a key partner.
BMO’s support enabled Cleveland Avenue to attract capital and raise its first fund. The company then burnished its reputation in the institutional investor community with an early investment in Beyond Meat, which subsequently went public with a $5 billion capitalization, and other very successful investments that gave this first fund a huge Internal Rate of Return.
Thompson and his Cleveland Avenue team parlayed this success into a raise for subsequent funds, bringing the total capital under management to just below $1 billion. It includes a $70 million fund, CAST US, to support BIPOC- and women-owned founders that is managed by Andrea Zopp, CA Managing Partner and Jason Mercer, a CA Principal and a member of the Naturally Chicago Executive Committee.
The conference included other great panels. Strategies for Building Scale through Supplier Diversity included Amazon’s Cliff Goins; Betsy Ziegler of 1871; Michael Fassnacht, CEO of World Business Chicago; and Gloria Castillo of The Chicago Community Trust’s We Rise Together initiative.
Dan Caballero — CEO of Fillo’s and Naturally Chicago Board Member — participated in the Changing Face of Entrepreneurship discussion, which shared success stories and challenges of entrepreneurs along with key insights and partnerships of their journey.
Other panels included political leaders focusing on this topic, as well a discussion with top lenders and investors providing capital to diverse founders.
Alison Velasquez of Siempre Soups and Dan Caballero of Fillo’s — both Naturally Chicago Board members — flanked Naturally Chicago Managing Director Jim Slama at the BMO EMPowering Economic Equity Summit.
