New $100M private-public initiative targets entrepreneurs of color
A new initiative that mixes federal funding with private donations is seeking to help entrepreneurs of color start businesses.
The big picture: Less than 1% of funds from the top 25 venture capital and private equity firms wind up in the hands of Latino-owned businesses. The project is one of several launched in recent months to tackle this inequality.
- Latino entrepreneurs are responsible for about 50% of net new small business growth in the U.S. over the past decade, according to a study by Bain & Company.
- Those Latino-owned businesses are growing in annual revenue faster than white-owned businesses, the study found.
Driving the news: The Fund for Inclusive Entrepreneurship on Tuesday announced the $100 million initiative to expand access to capital for small businesses owned by people of color across the U.S.
- The announcement came as the Biden Administration unveiled additional new actions to deliver capital and resources to underserved small businesses.
Details: The fund, spearheaded by Hyphen, a nonprofit that promotes racial equity, with support from J.P. Morgan Chase and the W.K. Kellogg Foundation, aims to combine philanthropic funding with money from the American Rescue Plan.