Although the tech world saw a record-breaking infusion of venture capital last year, only a small fraction of those funds supported founders who are Black, Latinx or Indigenous.
Black entrepreneurs received just 1.2 percent of U.S. venture capital funding in the first half of 2021, and Latinx founders raised only 2 percent of U.S. venture capital investments last year, according to Crunchbase.
Techstars, a Colorado-born tech accelerator that has provided early mentorship and funding to nearly 3,000 startups across the globe, hopes to bridge the racial and ethnic wealth divide through a new three-month accelerator program that provides access to capital, one-on-one mentorship and customized programming for early-stage founders of color.
The new accelerator program, powered by the financial resources of J.P. Morgan, will invest more than $80 million in diverse entrepreneurs and founders over the next three years. The funds will be distributed to more than 400 companies in nine American cities.
“With J.P. Morgan, our goal is to be more intentional in the way our programs attract, support and invest in Black, Latino and other underrepresented founders,” Techstars CEO Maëlle Gavet said in a statement.
The program began accepting applications today in Atlanta, Chicago, Detroit, Miami and Washington, D.C. In 2023, the program will launch in Los Angeles, New Orleans, New York and Oakland, California.
Tiffany Lewis, head of diverse manager strategy at J.P. Morgan Private Bank, said in a statement that the program will focus on founders that have been overlooked by traditional sources of venture capital.
“This new commitment will advance the shift toward more equitable economic opportunities through access to financial services, mentorship, quality education and training and promoting inclusive business practices,” she said.
