New Initiative to Empower Entrepreneur Support Organizations Serving Founders of Color

The Black Innovation Alliance and Village Capital have jointly launched Resource, a nationwide program designed to strengthen organizations that support entrepreneurs of color. This initiative directly addresses the challenges faced by these crucial entities.

Addressing Critical Needs in the Ecosystem

Entrepreneur support organizations (ESOs) are currently experiencing unprecedented demand while simultaneously grappling with dwindling resources. These organizations are often undervalued and receive insufficient financial backing, according to the founding organizations.

Resource intends to provide vital assistance to local accelerators and incubators through comprehensive training and the fostering of a collaborative community.

The ESO Accelerator Program

A core component of Resource is the “ESO Accelerator.” This program will equip leaders within the startup ecosystem with the knowledge and tools necessary to establish more financially robust organizations.

Participants will also gain access to potential funding sources and receive milestone-based financial support directly linked to their organizational development.

Building a National Network

Resource will cultivate a national community of practice, connecting ESO leaders of color with their funders. This network will facilitate the sharing of best practices and the development of enhanced capital and mentorship opportunities.

The aim is to create stronger pathways for Black, Latinx, and Indigenous founders throughout the United States.

Village Capital’s Commitment to Inclusive Investing

Allie Burns, CEO of Village Capital, emphasized the organization’s dedication to supporting entrepreneurs who have historically been overlooked by investors. This includes those tackling underrepresented problems, operating in less-favored geographies, or belonging to demographic groups that traditionally receive less funding.

Over the past five years, Village Capital has collaborated with over 100 ESOs to foster the growth of companies led by founders from diverse backgrounds.

The objective of Resource is to ensure that incubators and accelerators focused on supporting people of color possess the necessary resources to thrive.

Burns stated, “We want to make sure that those accelerators and other ESOs have the financial, social and human capital to keep their doors open and grow.”

Recognizing the Role of Black-Led Organizations

Kelly Burton, Executive Director of the Black Innovation Alliance, highlighted the pivotal role that Black-led organizations play as the initial point of support for Black entrepreneurs.

Despite their crucial contributions, these organizations often receive minimal support and funding.

“It’s almost like they do all the heavy lifting, they plant seeds and do all the cultivation but they don’t really get to benefit once that founder and that startup has really taken off,” Burton explained.

Resource presents an opportunity to stabilize these organizations, enabling them to build their capacities and ensure long-term sustainability.

Funding and Support

Resource is backed by a national coalition of funders dedicated to supporting entrepreneurs of color. Initial contributors include Moody’s, The Sorenson Impact Foundation, Travelers, and UBS.

Related Initiatives

Recently, New Jersey Governor Phil Murphy proposed a $10 million allocation in the state budget to establish a seed fund specifically for Black and Latinx startups.

Numerous organizations are actively committed to funding diverse founders.

TechRise and DivInc: Additional Support Programs

In February, a collaborative effort involving national and Chicago-based organizations launched TechRise, a program designed to support early-stage Black and Latinx tech entrepreneurs. This initiative, spearheaded by P33 in partnership with Verizon and 1871, aims to reduce the wealth gap in Chicago, create tech jobs, and distribute $5 million in grant funding.

DivInc, based in Austin, is a nonprofit pre-accelerator offering 12-week programs for underrepresented tech founders. Founded in 2016, DivInc focuses on empowering people of color and women entrepreneurs by providing access to education, mentorship, and valuable networks.