Bank of America, in a recent announcement, unveiled a commitment of over $500 million towards equity investments in funds led by minorities and women. This allocation is more than twice the size of its original $200 million pledge.
Broad Reach: Investments Across the U.S
This commitment has enabled the financial institution to devote equity to upwards of 150 funds. These funds have subsequently invested in more than a thousand companies across 40 U.S. states. The businesses they’ve invested in are steered by over 1,500 diverse entrepreneurs and have created jobs for more than 21,000 people.
Tackling Financial Disparity: Support for Diverse Entrepreneurs
Tram Nguyen, the Global Head of Strategic and Sustainable Investments at Bank of America, emphasized their goal to bridge the financial gap for diverse business owners. As quoted in a Reuters report, Nguyen said, “Capital to under-resourced entrepreneurs has the effect of unlocking their potential to grow their businesses locally and to create economic opportunity.”
Trailblazers: Investment Stories
Funds like Zeal Capital Partners, founded by Nasir Qadree, an alumnus of a Historically Black College and University (HBCU), are contributing significantly to this change. Zeal has been instrumental in empowering entrepreneurs from underserved communities, such as Esusu. Esusu is now one of the few Black-owned unicorns providing essential tools to immigrants and minorities for credit building.
Similarly, Chingona Ventures, the only active fund in the Midwest led by a Latina, Samara Hernandez, has been targeting founders from unique backgrounds to foster businesses in underrepresented markets. One such investment has been Papaya, a bilingual STEM tutoring organization that works to bridge the educational gap for underserved students.
Maintaining Momentum: Towards Economic Growth
Bank of America continues to bolster the growth of diverse funds and entrepreneurs by delivering the capital and resources necessary for their growth. This aligns with the bank’s commitment to promoting racial equality and economic opportunity, echoing sentiments from several U.S. banking giants following the racial-equality protests of 2020.
More detailed information about Bank of America’s work in supporting diverse funds and entrepreneurs can be found in this link.
