Building multigenerational wealth in diverse communities enriches the economy and ultimately helps underrepresented groups join the ranks of business founders and angel investors.
“The average white household makes six times as much as a black household,” said Margie Batchelor, director of education initiatives for the Kansas-based Angel Capital Association.
Batchelor, who was one of the speakers on angel investment diversification at the Wisconsin Technology Council’s Early Stage Symposium in Madison Nov. 9-10, said multigenerational wealth typically comes from capital gains, whether from real estate investments or stocks. .
“We need to figure out how to get more homeownership. How to get more equity? How to get more founders and entrepreneurs to take more equity in their companies?” he asked.
By creating entrepreneurial ecosystems in communities nationally, officials hope to diversify angel networks and create more inclusive economies.
Kelly Jones is the managing partner of Sixty8 Capital in Indianapolis, a seed fund for diversified startups. Over the past five years, he has trained over 40 Black and Latinx founders through his group, the Be Nimble Foundation.
We need more founders. We should support them more. “We need to connect them to venture capital.” The fund has invested in 14 companies with diversified ownership based in the Midwest and South, and has subsequently given additional funding to six of them, he said.
“The capital that we’ve been able to leverage has now flowed to other founders who are starting companies,” Jones said. They now have somewhere to go. “We can work with them to prepare their capital.”
Sixty8 Capital invests in what Jones calls the “four Cs”: community, consumer, business and culture. “It’s about businesses solving other people’s problems,” he said. “We’ve invested heavily in anything that supports the infrastructure of people of color.”
Bacheler Group also offers a 20-hour curriculum through its Angel University to help demystify angel investing and break down barriers. Its Seed the Future campaign also helps create targeted programs for underrepresented communities to expand business investments and support.
You know, you don’t have to look like the guys on Shark Tank to be an angel investor. It is a learned skill.
Cordero Barclay is a partner at TitletownTech, a venture capital fund in Green Bay, which has partnerships with the Green Bay Packers and Microsoft, and invests in high-growth, scalable ventures.
Recently, Barkley said TitletownTech invested in a Miami-based black-owned company called StatusPro, which aims to create a virtual reality experience for the National Football League. Several other investors questioned the project, saying the company should be based in Los Angeles, which the founders saw as a micro attack.
“We looked at it and thought it was a no-brainer,” Barkley said. They launched [the product] in September, and they were the #1 selling unit on the meta for the last 10 weeks. … I look at it as a missed opportunity because we don’t have representation.”