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Black angel investors are a crucial part of building equity in minority-led businesses. They provide critical funding and expertise to entrepreneurs who are often overlooked by traditional investors.
These investors are not just limited to writing checks, they also bring valuable connections and industry knowledge to the table. For instance, a black angel investor may have a network of contacts that can help a startup secure a key partnership or distribution deal.
One notable example is the Harlem Capital Partners, a black-led venture capital firm that has invested in over 50 startups. They've made a significant impact in the industry and are changing the game for minority entrepreneurs.
By investing in black-led businesses, these angel investors are helping to create a more equitable and diverse economy.
Black Angel Investors
Black Angel Investors are making a significant impact in the investment world.
William (Tré) Clayton, a 26-year-old investment banking professional, has made it his personal mission to invest in minority-owned companies, starting with his first investment in NeuroVice, a medtech startup founded by Black female founder Ashlyn Sanders.
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Clayton's investment journey began with watching "Shark Tank" as a high school freshman and later learning about venture capital while working at an investment banking firm in New York City.
He's now a venture fellow and limited partner at Collab Capital, a $50 million fund dedicated to Black founders, and is looking to have another investment under his belt by the end of the year.
Ensuring a successful exit is top of mind for Clayton, but he's also driven by a personal goal of transforming humanity through financial literacy and equitable opportunities for people of color.
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Building Equity One Minority Investment At A Time
Building equity one minority investment at a time is a mission-driven approach that's gaining traction in the venture capital space. This approach is driven by individuals who are passionate about creating a more inclusive and equitable ecosystem.
William (Tré) Clayton, a 26-year-old vice president at Siebert Williams Shank, is a great example of someone who's making a difference through his personal investments. He's a venture fellow and limited partner at Collab Capital, a $50 million fund dedicated to Black founders.
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Tré's personal mission is to "transform humanity through financial literacy and equitable opportunities for people of color — one minority investment at a time." He's already made a significant impact by investing in Cary medtech startup NeuroVice, founded by Black female founder Ashlyn Sanders.
Black Girl Ventures is another organization that's working towards building equity one minority investment at a time. Their mission is to provide Black/Brown woman-identifying founders with access to community, capital, and capacity building.
By investing in Black and Latinx women-led tech companies, digitalundivided is also championing the cause of building equity one minority investment at a time. They've already invested in over 52 companies and distributed $25 million in investments.
Evals Equity is a new women-focused VC fund that provides grants and funding to women of color and minority-owned businesses. Founded by Dr. Rashae Barnes, Evals Equity provides grants in the amount of $5K to $50K and helps entrepreneurs navigate the fundraising process.
The impact of these individuals and organizations is significant, and it's a testament to the power of building equity one minority investment at a time. By investing in underrepresented founders, they're not only creating a more inclusive ecosystem but also generating returns that are in line with or even outperforming traditional venture capital funds.
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Notable Black Angel Investors
Tré Clayton, a 26-year-old angel investor, is driven by a personal mission to transform humanity through financial literacy and equitable opportunities for people of color. He's working towards this goal by investing in minority-led startups.
As a venture fellow and limited partner at Collab Capital, a $50 million fund dedicated to Black founders, Clayton is committed to creating a more inclusive investment environment. He recently invested in NeuroVice, a medtech startup founded by Black female founder Ashlyn Sanders.
Clayton's approach to angel investing is guided by a desire to ensure a successful exit and make another investment before the end of the year.
Rare Breed
Rare Breed Ventures is a pre-seed fund that invests in exceptional founders outside of large tech ecosystems, earlier than everyone else. They take a concentrated portfolio approach by writing checks of up to $250K as the first or one of the first investors.
Their top verticals include Consumer, Wellness, and Medical. They're not limited to investing in minority-led startups, but they do reserve capital for investments in minority and women founders.
Rare Breed Ventures is unique in that they invest in companies with a tight product-customer fit that expect to accelerate quickly. They call this acceleration capital (post-seed to growth).
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Innovation
Innovation is thriving in the hands of black angel investors who are dedicated to backing promising founders in the tech space. Black Innovation Capital, based in Canada, was built on the success of Dream Maker Ventures, with a clear objective to invest in black founders.
Black Innovation Capital is a prime example of how innovation can be fueled by a commitment to diversity and inclusion.
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Philosophy and Approach
Black angel investors are changing the game by focusing on good business deals, not just philanthropy. Bill Spruill is a great example of this approach.
Resilient Ventures is dedicated to disrupting systemic economic injustice by expanding access to capital, networks, and opportunity to companies. They focus on consumer, tech, and healthcare companies.
Bill Spruill knows firsthand the hardships of raising capital as a person of color, having bootstrapped his global identity verification platform in 2011. He's since raised $3.5 million and is scaling quickly.
Spruill's strategy is to invest in deals that will "make me money and generate a return", not just because they're led by African Americans. He wants to invest in good business deals, period.
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Sources
- https://betaboom.com/top-black-led-venture-capital-funds/
- https://baucemag.com/list-of-black-investors-and-vc-firms/
- https://shoppeblack.us/venture-capital/
- https://ventureforward.org/10-black-investors-making-a-big-impact-in-vc/
- https://wraltechwire.com/2021/09/01/emergin-black-angels-are-working-to-close-the-funding-gap-heres-how-why/
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