October 29, 2018
In an extraordinary new development, funding for black businesses is flourishing. More than $370 million has been raised or planned this year to back black venture capitalists. However, the percentage that will go to black businesses, remains to be seen.
The growing trend is phenomenal as black businesses for years have struggled to accumulate capital from mainstream financiers to startup or expand businesses.
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Take Base 10 Partners. The San Francisco-based venture capital firm started last year announced in September 2018, it has raised $137 million to invest in fresh startup firms operating in logistics, waste management, real estate, and other industries. Led by black investor Adeyemi Ajao, co-founder and managing partner, Base 10 is among the first venture-backed funds to raise more than $100 million in its debut fund, technology website Venture Beat reported.
More investments initiated by black entrepreneurs include SheaMoisture founder Richelieu Dennis’s $100 million New Voices Fund and the $36 million Backstage Capital fund led by venture capitalist Arlan Hamilton. The funds will be used to empower women of color entrepreneurs and invest in black female founders. Hollywood actor Will Smith has teamed with Japan’s World Cup soccer star Keisuke Honda to start The Dreamers Fund, a Los Angeles-based venture capital fund. It intends to raise $100 million of Japanese money to invest in U.S. startups fixed on social issues, Ebony reported.