Google launches R$ 18 million fund to finance black-led startups
Google announced on Wednesday (09/09) that it will launch a R$ 18 million fund to finance startups founded and led by Black people in Brazil over the next 18 months. This is the first time that Google has invested financially in startups in Brazil and the expectation is that around 30 investments will be made, across a wide range of businesses.
According to André Barrence, Director of Google for Startups in Latin America, the Black Founders Fund aims to support Black entrepreneurs. They point out that the main barrier to the growth of their ventures is access to entrepreneurial financing under fair conditions.
Black Founders Fund: How to Participate
The Black Founders Fund's mission is to promote the growth of companies founded and led by Black individuals in the Brazilian business landscape, as they face additional challenges to thrive and establish themselves in the market. The criteria for participation in the initiative are:
- Being a startup
- To be established and run by Black businessmen and women.
- Be established and operating in Brazilian territory.
- Looking for seed investment
- Offer a solution built on technology
- Have a business in operation or have a product on the market with potential customers.
Interested parties can register or recommend startups using an available form on the project website throughout the fund's active period. Entrepreneurs must also detail their plans for investing the funds.
Investments will begin in September 2020 and the amount allocated to each startup will vary depending on the product's maturity stage and current needs.
Brazilian Startups: The Black Entrepreneurship Landscape in Brazil
In Brazil, there are 14 million black entrepreneurs, the majority of whom are women (52%) under the age of 40, according to the study Black Entrepreneurship in Brazil, conducted by the black entrepreneur accelerator PretaHub, in collaboration with Plano CDE and JP Morgan.
Around 30% claim that they were denied credit without explanation and most entrepreneurs started their businesses with their own savings or those of family and friends, due to the difficulty in obtaining capital.
Since our arrival in this environment, the goal and dedication of the Google for Startups initiative has been to foster equal opportunities for startup entrepreneurs of all backgrounds. The fund for Black entrepreneurs reaffirms our commitment to the Brazilian innovation ecosystem, as we believe that if startups thrive, it will benefit not only Google, but the entire community, as well as our communities and economies,” said André Barrence, Director of Google for Startups in Latin America.
