TLDR:
- Denver and the DEMI Fund reached an agreement to end a lawsuit over unpaid expenses.
- The DEMI Fund will continue to support existing investments in minority and women-owned businesses.
In an effort to support minority- and women-owned businesses with financing, the City of Denver partnered with the Herman Malone Fund, using a sales tax revenue from marijuana sales. The city hired Danielle Shoots and the DEMI Fund to oversee this initiative, but the relationship came to a halt when Shoots filed a lawsuit in March claiming unpaid expenses totaling $800,000. The funding source for the Herman Malone Fund was projected to generate $15 million annually but fell short due to lower-than-expected cannabis sales. Under the agreement announced recently, Denver will pay outstanding invoices, while DEMI will drop its lawsuit and release the city from its contract. The fund will continue to support its portfolio companies and invest any remaining amount in the Herman Malone Fund. Although there were some challenges in the partnership, DEMI remains committed to helping its portfolio companies succeed.
Denver’s goal with the Herman Malone Fund remains the same – to provide economic opportunity and access to resources for minority- and women-owned businesses. While the fund has experienced setbacks, including disputes over funding and expenses, both parties are now focused on moving forward to achieve their original mission.
