On Nov. 4, Finurah will present its inaugural one-day virtual wealth summit. We will bring together thought leaders, proven experts, and the community for lively discussions on creating generational wealth, financing and more. Get access to the Finurah Wealth Summit 2021 here and click “Going”.
In today’s financial climate, Black startups continue to find it challenging to attract major investment and funding. In fact, Black startup entrepreneurs still receive just 1.2 percent of the record $147 billion in venture capital invested in U.S. startups through the first half of 2021, found Crunchbase.
There is, however, an increasing number of African-American focused groups that are working to fund Black businesses.
Each week, Finurah will present a roundup of funding opportunities for Black entrepreneurs.
Backstage Capital Grants for Founders
Backstage Capital is a venture capital fund founded by celebrated founder and investor Arlan Hamilton. Hamilton, who is African-American, built venture capital fund Backstage Capital from the ground up, while homeless.
Hamilton is now one of the few Black venture capitalists in Silicon Valley, and she gives grants to underfunded Black startup founders. Founders have to be woman-identified or African-American to apply for funding, and applications are accepted year-round. Startup founders can apply for investment on Backstage Capital’s website.
Collab Capital funds Black startups to help them grow and scale their businesses. Founded by three experienced Black founders, operators and investors, the mission of the fund “is to decrease the racial wealth gap.”
The three principal founders are: tech entrepreneur and venture capitalist Jewel Melanie Burks Solomon, who is the first head of Google for Startups in the U.S.; Barry Givens, managing director of Cox Enterprises Social Impact Accelerator Powered by Techstars; and capital entrepreneur Justin Dawkins, co-founder of social tech company Goodie Nation.
Burks is one of the featured speakers in the upcoming Finurah Wealth Summit 2021.
There are specific industries that they will not consider. Companies that focus on biotechnology, cannabis and tobacco, cryptocurrency and tokens, food and beverage, gambling, liquor and spirits, professional services agencies, and real estate will receive an immediate “no.”
While they will consider companies nationwide, they are primarily looking to back companies based in cities with a high concentration of Black entrepreneurs and a low concentration of capital. Among these cities are Atlanta, Washington, D.C., Houston, Detroit, St. Louis and New Orleans.
Collab Capital’s first checks are between $500,000 and 750,000 and for follow-on investments up to $2 million.
Early-stage Black businesses that focus on health care, education and e-commerce are especially encouraged to apply on a rolling basis here.
Indiana Black-Owned Business Loan Fund
The Indiana Black-Owned Business Loan Fund makes loans more accessible for Black-owned businesses in the Hoosier State. The fund provides financial support on a rolling basis to companies affected by the COVID-19 pandemic and helps the businesses build their credit and reach profitability. Business owners can apply year-round on Bankable’s website.
The SoGal Foundation Startup Grant
SoGal Foundation teamed up with Winky Lux cosmetics, luxury beauty company bluemercury, product development company twelveNYC, cloud communications platform Twilio, and other sponsors to provide several $5,000 and $10,000 cash grants to Black women or nonbinary entrepreneurs.
Founders can file applications on a rolling basis on the foundation’s website.
The Boston Celtics and the NAACP offer $25,000 grants through the Power Forward Small Business Grant to Black-owned businesses in the New England Area. Black entrepreneurs can apply at any time here.
Black Vision Fund
The Black Vision Fund gives grants to Black-owned small businesses through several financial institutions. Grants are given in their cities serviced by the banks; a full list of the cities can be found on the website. Interested small businesses can apply on a rolling basis on the Black Vision Fund website.