Early stage venture capital firm 500 Startups is raising a $25m micro fund to support Black and Latino founders.
According to a post, the fund will invest in approx. 100 companies giving Black and Latino founders access to capital, networks, and expertise to grow their businesses.
The vehicle, which will be led by Monique Woodard, Venture Partner at 500 Startups and co-founder of Black Founders, a national community of entrepreneurs whose mission is to increase the number of successful black entrepreneurs in tech, aims to take the investment opportunity given by the United States’ shifting demographics . By 2044, people of color will be the majority in the US and Black. Latino consumers currently have a combined $2.5T in purchasing power.
According to Woodard, the creation of the fund is based on a two-sided investing strategy. “On one side, you have Black and Latino founders who are undercapitalized and there are great deals to be made. On the other side, you have a population that over-indexes in many areas of technology consumption, increased consumer purchasing power, and an increase in the US Spanish-speaking population. This is making Black and Latino consumers a market that investors should be paying attention to,”, she said.
FinSMEs
24/06/2016