Helps Black-Owned Businesses Secure Funding

Morehouse College alums create crowdfunding platform for African-American entrepreneurs


While many aspiring and new African-American business owners have the passion and drive to get their company off the ground, there are overwhelming challenges that come to play once funding-time hits.

A CB Insights report that tracked founders of 165 companies that had received a first round of venture funding during the first half of 2010 revealed only 1% were African American, despite 11% of the U.S. population being black. Meanwhile, 87% of founders who obtained funding were white, and 12% of the startup founders were Asian.

Equity crowdfunding legislation has simplified the funding process for many entrepreneurs, and business owners have been successful with crowdfunding sites like Kickstarter and Indiegogo, among others.

A group of Morehouse College alums, and brothers of Omega Psi Phi Fraternity, Incorporated, wanted to help other entrepreneurs on their quest for funding. They created a new crowdfunding site, .

MadameNoire reports:

“The companies will use the site as a crowdfunding platform, and also has resources and a blog to support business owners. CEO Nate Bennett Fleming, who is an adjunct professor of law at the University of the District of Columbia’s School of Law, researched crowdfunding and African-American business, determining that while African Americans have a lot of business ideas, they often lack the access to capital to get the ideas off the ground.

‘I wanted to create a solution to address that problem,’ he said. ‘At this point, we do the crowdfunding and address increasing access to capital and as we expand, we’ll create partnerships with on-ground organizations that look to encouraging entrepreneurship and support entrepreneurs to help with mentoring.’”

Read more at MadameNoire…


5 Responses to Helps Black-Owned Businesses Secure Funding

  1. Pingback: Helps Black-Owned Businesses Secure Funding - I Am Mo Better

  2. Pingback: The Denver Urban Spectrum – Helps Black-Owned Businesses Secure Funding

  3. Soloman says:

    While other communities dollars flip over 10 or more times our dollars got out to other communities because that is where most of us shop outside our own communities ( does who can) but the business owner may live in the suburbs where his investments may go as well so our communities suffer ( people working under the table .. not being on the tax role) seen as unemployed.. also as said above other cultures dollars go farther because they invest into their cultures businesses allowing them to have more success especially in our communities. They own stores in our urban neighborhoods but will grow their business in suburban areas and if they do invest in our areas variety is limited or products are stereotyped .. liquor stores, cell phone stores, we pay higher prices because products do not sell as fast.. stores are cared for better, cleaner, safer, no one hanging outside begging, or harassing customers.. theft… lack of respect for the community they serve..

  4. Pingback: Milwaukee Community Journal » WISCONSIN'S LARGEST AFRICAN AMERICAN NEWSPAPER » seeks to capitalize black businesses through crowdfunding platform

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