ImpactAlpha, Oct. 20 – Investors and advocates are increasing their focus on Black and Brown-owned businesses, which even before COVID struggled to access capital and since have been hit disproportionately hard. Solving capital access gaps for founders of color can accelerate job growth and help close racial wealth gaps while adding billions to the U.S.
Business ownership and entrepreneurship are some of the best tools we have to grow the wealth of Black communities. “The median net worth for Black business owners is 12 times higher than Black nonbusiness owners,” regardless of their level of wealth before beginning a business, according to an AEO report. If Black businesses were fully
Netflix and Goldman Sachs are in vastly different businesses, but in formulating their responses to the racial crisis facing America, these corporations came to a similar conclusion: both bet big on Black-controlled financial institutions. Other corporations should follow their example. Community Development Financial Institutions (CDFIs) and Minority Depository Institutions (MDIs) led and owned by Black
ImpactAlpha, October 20 – Two new funds aim to streamline pay-for-success (sometimes called social impact bonds) and make it easier for nonprofits to raise impact capital to run and expand their programs. Impact investing advisor NPX structured place-based funds for the San Francisco Bay Area and Colorado to be payors to nonprofit organizations once their
ImpactAlpha, October 20 – Early-stage fundraising is difficult. Finding mission-aligned growth capital can be just as hard. Most of the few impact-oriented private equity funds have come from private equity giants like KKR, Bain and TPG. Chicago-based Impact Engine is aiming to expand the supply of growth-stage impact capital by investing in new managers of
ImpactAlpha, October 19 – Back in July, Axios reported that Clinton was “kicking around the idea” for a venture fund to invest in two sectors most impacted by the global pandemic: health and education. Her firm, Metrodora Ventures, made its first investment in online learning startup Fiveable, which is working to “democratize” access to advanced