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Tumml achieved notable success by combining financial resources with mentorship and strategic guidance. However, the founders recognized that depending solely on unpredictable philanthropic contributions limited their potential for growth. With an eye toward broader ambitions, they shut down Tumml and established the Urban Innovation Fund (UIF) in 2016, kicking off with an investment pool of $24.5 million. This transition allowed them to significantly enhance both the scale of their funding and their involvement in emerging enterprises.
The Urban Innovation Fund maintains a firm commitment to supporting startups that address pressing urban challenges, focusing on sectors such as public health, education, and transportation. They aim to invest in ventures that contribute to the economic strength of cities, enhance livability, and promote sustainability. Just as Tumml had done, UIF offers not only capital but also ongoing support to help startups navigate the complexities of regulatory environments.
“It’s a very, very small subset of companies that can both work on a problem that, at least in our minds, really matters and be an enormous business.”
Like its predecessor, UIF has taken calculated risks by investing in sectors that other financiers might hesitate to engage with. During the fundraising process for its inaugural fund, co-founder Lein recalls pitching a prominent institutional investor on their vision, particularly focusing on opportunities surrounding climate and energy innovations. That institution, having suffered losses from the cleantech market crash, expressed significant caution about funding anything in that realm. Nevertheless, Lein and Brenner remained determined, and today, technology addressing climate issues constitutes a substantial portion of UIF’s investments, representing over 15% of its portfolio, which comprises 64 companies. Among these, they have backed Electriphi, Public Grid—offering affordable clean energy access to households—and Optiwatt, which aids electric vehicle owners in timing their charging to be more economical and environmentally friendly.
“They ventured into sectors like mobility and transportation that others might eschew due to concerns about regulatory frameworks,” notes Rachel Sheinbein, an angel investor in the Bay Area who has collaborated with UIF on various investments. “They embraced the challenge of public-private partnerships and were not deterred.”
Additionally, Brenner and Lein have shown interest in healthcare startups such as Cleancard, designed to facilitate at-home cancer testing, and companies like KarmaSuite, which develops software that assists nonprofits in managing grants effectively.
The Urban Innovation Fund has also been noted for its inclusive approach, as a significant proportion of the businesses within its portfolio are helmed by underrepresented entrepreneurs. Currently, 75% of the startups backed by UIF are founded by women or people of color, and about 60% of these companies feature immigrants among their founding members.
In their investment strategy, Brenner emphasizes a methodical approach that considers regulatory implications alongside the pursuit of substantial financial returns typical of traditional investors. “It’s a very, very small subset of companies that can both work on a problem that, at least in our minds, really matters and be an enormous business,” she states. “Those are really the companies that we’re looking for.”
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