Best Buy Invests in Brown Venture Group to Support BIPOC Founders

Best Buy Invests in Black, Latino, and Indigenous Startups

Following the events of last summer and the tragic death of George Floyd, Best Buy publicly declared its commitment to improved support for communities of color. As a component of this stated goal to address technological inequities and underrepresentation, the retailer has announced a significant investment of up to $10 million in Brown Venture Group.

About Brown Venture Group

Based in Minnesota, Brown Venture Group is a venture capital firm established three years ago. The firm is dedicated to exclusively funding technology startups led by Black, Latino, and Indigenous founders, focusing on “emerging technologies.” Data from Crunchbase reveals that these communities received a mere 2.6% of all venture funding in 2020.

Currently, Brown Venture Group is actively raising capital for its initial $50 million fund, with 75% already committed. Best Buy’s potential investment, reaching up to $10 million, could constitute as much as 20% of the fund’s total capital, positioning the company as a leading Limited Partner (LP).

Founders' Vision and Best Buy's Role

Dr. Paul Campbell, co-founder and managing partner of Brown Venture Group, shared that early in the firm’s development, they were advised by numerous local individuals to relocate from the Twin Cities area, due to the concentration of capital on the coasts.

“We firmly decided to remain in the Twin Cities and establish this as a local success story,” Campbell explained to TechCrunch. “Consequently, when considering potential leading partners within our Twin Cities ecosystem, Best Buy was our top choice. We are incredibly pleased to have Best Buy as a lead LP in our fund.”

Best Buy, having generated $47 billion in revenue last year, stated that this investment aims to dismantle the systemic obstacles frequently encountered by Black, Indigenous, and people of color (BIPOC) entrepreneurs – particularly the lack of funding – and to empower the next generation of leaders within the technology sector.

The company further elaborated that the collaboration with Brown Venture Group will contribute to a more inclusive technology startup environment and foster a robust network of diverse suppliers.

Joint Entrepreneurship Program

Alongside the investment announcement, Best Buy and Brown Venture Group revealed plans to jointly launch an entrepreneurship program within Best Buy Teen Tech Centers. This program will focus on nurturing young entrepreneurs through educational resources, mentorship opportunities, networking events, and access to funding.

Brown Venture Group’s name reflects its commitment to inclusivity, representing a spectrum of skin tones within the communities it supports. The firm has already secured letters of intent with five BIPOC-led portfolio companies and is leading the seed funding round for Ecolution.

Broader Commitment to Diversity

While $10 million may appear modest relative to Best Buy’s $47 billion in annual sales, the company emphasizes that this is one of several initiatives designed to support BIPOC businesses. These include a $44 million commitment to expanding college preparation and career opportunities for BIPOC students, and a pledge to spend at least $1.2 billion with BIPOC and diverse businesses by 2025.

Furthermore, Best Buy aims to fill one in three new non-hourly corporate positions with BIPOC employees by 2025, and to onboard 1,000 new technology team members, with 30% representing diverse backgrounds – specifically Black, Latinx, Indigenous, and women.

“We are dedicated to taking concrete steps to address the challenges faced by BIPOC entrepreneurs,” stated Best Buy CEO Corie Barry. “Through partnerships such as this, we believe we can begin to foster a stronger, more dynamic community of diverse innovators in the tech industry, some of whom we anticipate will become future partners of Best Buy.”