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Startup founders often turn to friends and family for their initial support.
But for many black founders, that is not an option.
Before their startup can make millions of dollars according to Prudentj2 report, founders often need to raise a few thousand to have the money they need to build their company.
In start-up circles, this initial financial support is known as a “cycle of friends and family”, in which individuals who personally know the company’s founders invest, either as a loan or in exchange for a small stake of ownership.
But for many black founders, the idea is not new: They may not have people in their circles who can save thousands of dollars. According to
Federal Reserve
, the average total number of black families in the US is $ 24,100, compared to the $ 188,000 average for white families.
There are many plans in place to close the early funding gap for black founders, especially after the assassination of George Floyd last year that resurfaced through racism. prudentj2 has collected a few that have made commitments.
Five (5) programs that help African Business founders.
1. Google Startups Black Founders Fund.
The $ 5 million fund set up by Google in 2020 provides selected black-owned businesses with up to $ 100,000 in grants, as well as advice, Google Cloud credits, and advertising grants from Google.org.
The program has supported 126 initiatives, including 50 announced in September.
2. Hello Alice Black-Owned Business Resource Center
Hello Alice, a website dedicated to small business services, has partnered with the NAACP to launch a section focusing on black entrepreneurship grants.
The site has an excellent list of grants and hosts an online community of black entrepreneurs.
3. Coalition to Black Businesses
Founded by American Express and a group of other businesses and nonprofits last year, Coalition to Back Black Businesses offers $ 5,000 in grants to selected black companies.
The federation is committed to doing so each year until 2023. A few of the award recipients who are considered strong growth prospects will receive a $ 25,000 tracking grant.
4. Digitalundivided Do You Fellowship
Digitalundivided, a non-profit organization that supports black and Latin women in business start-up, launched its first Do Do Fellowship earlier this year.
The program is aimed at start-up capital and provides $ 5,000 in funding, as well as training, workshops, and management training.
5. Black Foundation Founder Grant Initiative Grant
The sister organization SoGal Ventures has partnered with sponsors such as Twilio and Winky Lux to provide $ 5,000 and $ 10,000 grants to Black women and non-binary entrepreneurs aimed at maximizing business support.
Last year, it provided grants to 29 businesses.
