Accelerator programs are organizations founded to provide early-stage companies that already have a minimum viable product (MVP) with the education, connection, resources, and mentorship needed to promote and enhance their growth. Usually, accelerator programs span between three to six months of intense mentorship. Hence, it is usual for accelerators to take equity in exchange for program placement. This article examines accelerator programs that focus on helping black founders in the US to finance their ideas.
Undeniably, many black founders have various innovative ideas about technology, education, finance, and lifestyle. However, funding is a significant barrier to actualizing them. According to a Coinbase report from 2020, black and Latino founders made up only 2.6% of the total startups financed with $87.3 million in investment capital. In another 2018 report by Richard Kerby of Equal Ventures’ partner, 81% of venture capital firms had no single black investor.
As a result, there is currently a struggle and unease for black entrepreneurs to balance their participation in the equation for financial inclusion while also putting their full potentials of their initiatives to grow a community that is idea rich and has great financial prospects for black entrepreneurs. Fortunately, several obligations are now in place to assist black Americans in conducting business throughout the United States.
Accordingly, the organizations and communities listed below are assisting in the funding of black entrepreneurs in the United States.
1 Advancing Black Pathways at JP Morgan Chase and Co;
This is a black community initiative that seeks to strengthen the black community’s economic inclusion and empowerment. It is structured in such a way that it provides resources to help curb the issues and challenges that the black community faces.
JP Morgan believes that everyone deserves the opportunity to be financially included. With this in mind, JP Morgan has increased its support for the Black Community Challenge, directing its resources toward education, a diverse career, business, and personal financial success.
JP Morgan recognizes that the rate of non-inclusion in the inclusion space will put strain on families, the economy, and the US economy.
To that end, it was able to launch a $830 billion policy and philanthropic commitment target by the end of 2025. This it hopes will prepare financial inclusion of the black community as well bridge the barriers of systemic racism.
2 Portfolia Rising America fund
The portfolio rising American fund directs its investment activities to early-stage startups companies in the United States that target people who are discriminated against, such as the bicolor and LGBTQ communities.
Its emphasis is on founder ecosystems and products that have traditionally been overlooked by venture capitalists but have the potential for profitability and significant growth. Portfolio America’s investments, in general, seek to strengthen marginalized entrepreneurs. It seeks to establish their presence so that they can benefit from the benefits of creating innovations and running successful businesses.
3 Talent x Opportunity Initiative
The Talent x Opportunity Initiative is an American startup entrepreneur community that focuses on culture and technology. The Talent x Opportunity Initiative provides cultural and technological start-ups with access to a new funding, mentorship, and training system. It assists entrepreneurs in obtaining funding of up to $100,000. However, investments or startups that benefit from these schemes must return a 7% ownership stake to the Talent x Opportunity Initiative.
4 Black Founder Startup Grant
The black Founder company Grant is primarily for women, particularly black women. Their mission is to address the world’s most pressing unmet needs while leaving a legacy of reinvestment in their communities and generational wealth. Because of the gender inequality that exists in many parts of the world, the Black Founder Start-up Grant has been tailored to women in order to help bridge the financial participation gap. This is to generate capital for business women in areas where funding is difficult to come by.
5 Impact America fund
This is also a marketplace that helps independent hair stylists increase their income by providing them with their own website and connecting them with new clients. So far, the Impact America fund has paid out $20 million in commissions and service fees to 7,500 active stylists.
This investment funding opportunity is designed for startups led by people of color.
6 Black Star Fund
This is yet another platform that provides financial assistance to black Americans. Its mission statement is centered on assisting black startups in becoming financially stable. It views new enterprise as a gateway to a more abundant, balanced, and productive world.
It combines the early stage of “friends and family” funding with the rigor of venture capital. Their strategy is to seek out founders, individuals with unique innovations and business models in which to invest.
7 Backstage capital
Backstage Capital is a platform that brings together investors who want to invest in people of color or LGBTQ people, particularly women, in order to help them achieve financial stability and inclusion. It is fundamental to invest in undervalued founders with good business ideas. the strong desire to create innovations that will break down barriers and make the world a better place
8 Harlem capital
Harlem Capital, is another good investor platform. It is a venture capital firm that aims to transform entrepreneurship by investing in 1,000 diverse founders over the course of 20 years. Harlem Capital has 39 investment plans spread out over 14 cities.
So far, it has 7 committed investors who have helped to promote a number of black businesses. Its mission is to develop a new generation of business leaders.
9 Founders First Capital Partners
This is another good investment platform that lends to businesses owned by people of color, Hispanics, LGBTQ people, veterans, and women. They also lend to businesses in low-income areas that are committed to assisting entrepreneurs in accelerating their business growth through revenue-based financing.
They also provide consulting products and services. Founders Capital Partners intends to grow its workforce, revenue, and bottom line. They also want to help businesses by providing more growth capital.
As Founders First Capital Partners is a partner of one of America’s top philanthropic organizations, it is simple for them to assist black startups in obtaining the necessary capital.
10 Humble Venture Capital
Humble Venture Capital is a founders investment platform that assists founders and innovators in identifying and prioritizing problem solving in order to capitalize on available opportunities. As a result, you will have a positive and long-lasting impact on the world.
They operate through Consulting programming, an investment that provides non-dilutive grants funding, and they invest capital for equity through their fund and through other partners.
Accelerator programs, as a group of organizations, have been at the forefront of funding for black entrepreneurs. Prospective entrepreneurs are encouraged to visit these companies’ websites, register, and follow the process to begin the journey to funding.
This will help to close the gap in a $87.3 billion dollar industry with only 2.6% black entrepreneurs.
Entering a pitch competition is another way to obtain investment capital. There are numerous platforms that provide funding for black entrepreneurs and other minority startups through competitions.
Among these organizations are:
11 Kiwi tech minority founders online demo day
The Kiwi platform enables prospective initiatives to showcase what they can offer through their innovations. This helps minority entrepreneurs secure investors while also encouraging financial inclusion for new startups and partners.
The Kiwi Day Demo hopes to create a ripple effect in terms of awareness and success of minority businesses, particularly those led by women. They have a number of collaborators, including entrepreneurs, angel investors, and friends.
They are all motivated by the desire to revitalize and support minority-led tech startups in the community. The Kiwi Tech event is held at regular intervals throughout the year, as indicated on their website.
12 Scale-up pitch challenge-NBMBAA
The NBMBAA initiative is a scaleup pitch competition for the NBA for people of African descent in the United States. It was founded in 2017 with the mission of assisting the association in creating and supporting wealth-building opportunities for its members.
Due to the exposure and funding received from this challenge, it has produced winners who have had great success with investors. This year’s winner will receive a whopping $50,000 prize, as well as additional prizes for second, third, and people’s choice.
Prospective black entrepreneurs looking for funding for their startups are encouraged to check out any of these competitions by visiting their website and registering for participation. Each year, lucky winners are financed in varying amounts based on the significance and type of initiative intended for startup.
In other words, there are numerous opportunities and openings available to Black entrepreneurs in need of startup funding.
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