ImpactAlpha, June 1 — Limited partners in the Black-led San Francisco venture firm’s Advancement Initiative fund include Howard University, Florida A&M, Hampton University, Tuskegee University and other HBCUs.
Base10 Partners will invest in late-stage technology companies with a focus on catalyzing wealth creation for underrepresented minority communities – and donate 50% of the fund’s carried interest to HBCUs for their endowments and to create scholarships for 100,000 STEM students.
“Supporting HBCUs is the most effective way for us to augment underrepresented minority talent in Silicon Valley,” said Base10’s Adeyemi Ajao.
HBCUs produce approximately 25% of African American graduates in the STEM fields of science, technology, engineering and mathematics.
The top 10 largest predominantly white institution endowments reported a combined total of $199.8 billion last year, compared to $2 billion for the top 10 largest Historically Black Colleges and Universities, or HBCUs, according to NACUBO.
The Base10 fund has already made several investments, including Nubank, a São Paulo-based fintech for underserved Brazilians; and Aurora Solar, a San Francisco-based software startup that helps solar installers plan installations remotely.