Dealflow | September 28, 2020

Citi Impact Fund secures $50 million to invest in Black entrepreneurs

Jessica Pothering
ImpactAlpha Editor

Jessica Pothering

ImpactAlpha, September 28 – Citi launched its $150 million impact fund in January to invest its own capital in companies addressing workforce development, financial inclusion, sustainable energy and water use, and high-impact infrastructure, with a focus on women and other underrepresented founders. Citi has now allocated an additional $50 million in capital to invest specifically in Black founders.

Citi Impact Fund fund recently made its first four investments, backing waste-to-energy company Fulcrum BioEnergy; ICON, which prints 3D homes for the unhoused; affordable housing marketplace PadSplit; and The Mom Project, a female-founded marketplace connecting women to good jobs.

Citi, which manages nearly $2 trillion in assets, has committed $1 billion to help close the racial wealth gap in the U.S. Other pledges include: $550 million to support homeownership for people of color and affordable housing by minority developers; $350 million in business with Black-owned business suppliers; $100 million in investments in minority-owned depository institutions, like banks and credit unions; and $100 million in grants.