The Black Founders’ Grant is an initiative that allows black founders seeking funding to finance their businesses, ideas, and innovations.
It is not a hidden fact that Black founders find it challenging to get funding for their startups, including US grants. Even when they get funding, they go through stringent verification processes, and sometimes the interest on these grants is usually high. For this reason, many communities have tried to bridge the gap between the Black fundraising ability and the total investment in startups in the United States. Accordingly, this article delves into 8 top Black Founders Grant;
#1 SoGal Foundation Grant
SoGal Foundation is streamlined to cater to the financing and funding of Black women entrepreneurs with innovative ideas. Presently, it is on record that Black women entrepreneurs receive less than 5% of venture capital funding. Accordingly, this foundation proposes to stand up for the inclusion of black entrepreneurs to help change the status quo. It is believed that Black women founders are the fastest-growing demographic of entrepreneurs out of many throughout history.
Qualification Criteria
1. The prospective fund seeker who intends to be financed for his idea must identify as a black woman or black non-binary entrepreneur, which includes people of color
2. The prospective entrepreneur must have a legally registered business
3. The entrepreneur must have a written plan (business plan) that has the focus and forecast of the business ideals.
SoGal Foundation helps the female Black entrepreneur secure funds from Venture capitalists, Corporate institutions, or other lenders who desire to contribute to a hugely discriminatory economy to the black community and all non-binary entrepreneurs.
SoGal Foundation has teamed up with several communities to make strides toward progress by providing several $10K and $5K cash grants to Black women or nonbinary entrepreneurs. Furthermore, SoGAl assist awardees with tactics and help to pilot through their business operations. It has also been able to liaise with other fundraising communities to provide an opportunity for these women towards financial independence and create ideas to help them raise funds worth billions of dollars.
SoGal Key Funding Verticals
Logistics/Transportation, Media, Mobile, Real Estate, Retail, Security, Social Enterprise, Software, and many others.
SoGal Foundation, as a platform for black entrepreneurs, recently teamed up with Winky Lux, bluemercury, twelveNYC, Twilio, Walmart.org, Center for Racial Equity, and other sponsors with the main purpose of creating financial empowerment.
#2 The Google Back Founders Grant
This platform gives Grant to intending entrepreneurs to kick-start their business ideas and boost black founders’ financial inclusion and stability. Google is the financier for Startups-Black Founders Fund, which provides 5 million dollars in non-dilutive cash awards to Black-led startups that have participated in their Programs or have been nominated by their partner community or a previous recipient. Founders who scale through receive up to 100,000 dollars in capital, along with Google Cloud credits, Google.org Ads grants, and hands-on support to help their startup grow.
The Google Black Founders Fund in Africa supports early-stage, Black-founded startups on the continent. They are interested in bridging the existing fundraising gap for Black startup founders in Africa’s fast-growing technology scene. This non-dilutive amount of 4 million dollars provided cut across a space of 60 investable startups in Africa. Prospective entrepreneurs who desire to apply for funding must check out the website for available opportunities. Prospective Founders stand to receive up to 100,000 dollars in equity-free cash. With the possibility of an additional 200,000 dollars in Google Cloud Credits and access to the best of Google—people, products, and practices.
African countries that can apply
Presently, most African countries are eligible to apply, including Botswana, Cameroun, Côte d’Ivoire, Ethiopia, Ghana, Kenya, Mozambique, Nigeria, Rwanda, South Africa, Tanzania, Uganda, and Zimbabwe. Their qualification is borne out of their active tech and innovative startup environments.
Criteria for eligibility
To be eligible for these funds, Startups must:
- Have their headquarters in Africa or have a legal presence on the continent
- Building for Africa and a global market
- Creating jobs, showing growth potential to raise more funding, and making an impact with an enthusiastic founding team.
- Must be diverse, with at least one Black C-level founding member
- Must be directly supporting the Black community
- Must be a business where technology is core to their ability to scale (the initiative is not for consultancies or not-for-profits)
#3 Grants.gov
Grants.gov is a web-based platform that gives grants to prospective entrepreneurs and black initiatives to apply for federal Grant opportunities. It offers over 20 agencies that are capable of funding ideas and startups. These Grant affording agencies can award well over 500 billion annually. They fund startups ranging in Logistics, education, finance, technology, lifestyle, and many others.
The black community entrepreneurs with business initiatives are encouraged to check their website and see what Grant opportunities are available for them. It is expected that black business people desiring to have funding for their ideas must first have drafted a simple and convincing business plan before seeking consideration on the grant.gov platform.
Prospective business initiatives seeking guidance on securing funding opportunities can easily get help at one of the MBDA’s Minority Business Centers, which can be found all around the country’s major metropolitan areas.
#4 The KKR $10,000 grant
This platform was established in 2020 to help cushion the effect of the covid-19 pandemic on young businesses. KKR generally supports small businesses due to the difficulty in getting funding. They also have grants for companies already in operation but with funding constraints desiring to scale up.
Since its establishment, KKR has awarded over 200 small businesses with $10,000 grants through its Small Business Builders program. The KKR grant program is accessible to small business owners and entrepreneurs globally. Additionally, you get the information and help needed to successfully run your business, such as business registration and other documentation that you need regarding program development and formation.
The process starts the moment you get your application started online. I
#5 The SBIR Grants
This program is designed to support small businesses by providing funding opportunities to help them thrive and stimulate technological innovation.
Basic offerings of the SBIR and STTR
The Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR), collectively the Small Business Programs, are also known as America’s Seed Fund.
By setting aside more than $1.2 billion from its Research & Development Funding specifically for Small Business Programs, the NIH provides support to early-stage small businesses throughout the nation.
Many companies leverage NIH funding to attract the partners and investors needed to take an innovation to market. They focus on a variety of high-impact technologies ranging from research tools to diagnostics, digital health, drugs, medical devices, and others.
The NIH SBIR and STTR programs can provide the seed funding you need to bring your scientific innovations from the bench to the bedside.
The goals of the program are:
1. Stimulate technological innovation
2. Meet federal research and development needs
3. Increase private sector commercialization of innovations developed through federal R&D funding
4. Foster and encourage participation in innovation and entrepreneurship by socially and economically disadvantaged (SDB) persons and women-owned small businesses (WOSB).
They have dedicated staff equipped to guide you through every part of the process to maximize success. Without taking ownership of your small business, the NIH provides funding for the research and development of innovations and supports commercialization efforts for your product.
It is important to note that the NIH is generally not the final purchaser of technologies generated through the programs.
#6 The National Association of Black Accountants (NABA)
The National Association of Black Accountants provides grant opportunities for Black business owners who are starting or trying to grow their businesses. NABA also provides businesses with the tools and resources needed to grow their businesses.
The Nationwide Affiliation of Black Accountants, Inc. (NABA) is a nonprofit organization that is devoted to bridging the gap for Black professionals in accounting-related fields. It also offers management and technical coaching, networking, and professional alternatives to the African American community.
NABA is about a career with an unfaltering dedication to encouraging the African American community. The Affiliation unites by way of membership accountants, finance, and business-related professionals and is involved with enhancing alternatives for minorities in accounting, finance, and business-related professions.
These services include the following:
• To advertise and develop the skilled expertise of its members.
• To encourage and help Minority College students get into accounting careers.
• To supply alternatives for members to satisfy their civic duties.
• To advertise public confidence in our members and the companies they supply.
• To encourage cordial relations amongst members and cooperative relationships with different professionals.
• To characterize the pursuits of present and potential minority accounting professionals.
• To make sure of long-term monetary stability and supply ample sources to implement chapter, regional, and nationwide applications.
#7 FedEx Small Business Grant Contest
With 10 years of supporting small businesses since 2012, the Small Business Grant Contest has awarded more than $1.5 million in cash and prizes to over 100 small businesses. The contest, which awards unique and innovative small businesses, has drawn more than 50,000 entrants—including nearly 18,000 in 2022.
It has been helping the winners grow by providing continuous support for their operations in terms of funding operations and offering technical support.
From time to time, it provides Blacks and minority business grants to help African Americans and other minority entrepreneurs. Sometimes, major companies, non-profit organizations, and government agencies offer grants.
#8 Black Enterprise Elevator Pitch Competition
The black Enterprise Elevator Pitch Competition is another initiative that prospective Black founders can get grants. This competition allows four semi-finalists to pitch their idea to a panel of judges and a live audience for a chance to win a $10,000 business grant.
Entrants may enter as individuals or in groups. There is no limit to the number of team members allowed; however, those who pitch must have an equity stake in the business.
In Summary
he Black Founders’ Grant is a series of initiatives aimed at providing funding to Black entrepreneurs who may face difficulties in securing financing for their startups. Some of the top grants for Black Founders include:
- SoGal Foundation Grant offers to fund Black women or non-binary entrepreneurs in various sectors such as logistics, media, real estate, retail, software, etc.
- Google Black Founders Grant: provides non-dilutive cash awards of up to $100,000 for Black-led startups in Africa.
- Grants.gov: a platform that offers federal grant opportunities with over 20 funding agencies.
- KKR $10,000 grant: established in 2020 to provide support to Black-owned small businesses affected by the COVID-19 pandemic.
- BMe Community Black Male Entrepreneurship Award: offers funding and support for Black male entrepreneurs.
- Comcast NBCUniversal LIFT Labs for Entrepreneurs: a program that provides resources and support for underrepresented entrepreneurs.
- TMCx+DiversityxTech provides grants, mentorship, and resources to underrepresented entrepreneurs.
- Project Black Incubation Network (PBIN): aims to increase the number of successful Black tech startups through mentorship, networking, and funding opportunities.
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