Describing itself as the nation’s first student-led venture capital fund, the Peachtree Minority Venture Fund has emerged in Atlanta.
The new fund was launched at the Roberto C. Goizueta Center for Entrepreneurship and Innovation at the Goizueta Business School at Emory University. It is geared to create capital opportunities solely for Black, Latino/a/x/e, and Native American entrepreneurs nationwide.
The financing vehicle comes as a growing number of entities have started new efforts since early last year to help combat systemic racial inequalities in the nation’s business world.
The initiative is needed. According to a news release, the PMVF started after students identified a void in venture funding, with underrepresented minority founders receiving less than 3% of U.S. venture capital investment.
Their research showed that persistent low wealth in Black, Latino/a/x/e, and Native American communities equals less access to personal or friends-and-family funding for startups. Further, Black entrepreneurs are rejected for loans at a rate nearly 20% higher than white entrepreneurs.
And just 1% of VC-backed founders are Black, and less than 2% are Latino/a/x/e. Plus, Black founders often fall short in the VC funding space.