Venture firm Black Tech Nation recently announced that they’ve officially closed their $50 million inaugural fund.
Dedicated to lowering barriers for Black entrepreneurs and other underrepresented groups to access venture capital for startups, Black Tech Nation plans to invest in 20 to 30 companies with this initial fund.
The nonprofit is particularly interested in investing in companies in tech sectors such as edtech, climate tech, AI, health tech and fintech. Through its inaugural fund, Black Tech Nation will invest in companies at the pre-seed and seed stages, with support ranging from $250,000 to $1 million.
Ten companies from all across the country have already been invested in. Amongst these companies is The Folklore. Created by entrepreneur Amira Rasool in 2018, The Folklore is an e-commerce platform that allows African retailers to sell their products in the U.S.
“We set up BTN.vc to equip and train a new generation of more diverse entrepreneurs and investors,” said general partner David Motley. “We are committed to providing intellectual as well as financial capital to help our founders navigate growing a successful company and opening up opportunities for future venture capitalists who are Black or diverse to participate in the industry.”
Black Tech Nation Ventures has arrived!
— Black Tech Nation Ventures (@BTNdotvc) December 8, 2021
Meet David Motley, Kelauni Jasmyn & Sean Sebastian. Together they are diversifying and democratizing access to capital raising $50 million for Black & underrepresented founders. They are https://t.co/i8Uxt4gmfL! pic.twitter.com/XiGT6W6Szj
The support for newer companies comes amidst an attack on funds for Black women-led startups specifically.
Venture capital firm The Fearless Fund recently stood on trial against conservative judges, defending their grant program for Black women-owned businesses.
In September, the conservative group American Alliance for Equal Rights, led by a conservative anti-affirmative action activist, accused the venture firm’s Strivers Grant Contest of being discriminatory against people of other races.
Earlier last month, the Fearless Fund defended themselves in court against conservative judges such as Judge Kevin Newsom. The attorney for the group, Jason Schwartz, emphasized that the group’s grant doesn’t discriminate because it’s devoted to a cause that is not a commercial transaction.
The ongoing case has caused a nationwide uproar with many officials showing their support for The Fearless Fund.
In December, New York Attorney General Letitia James, leading a group of 19 attorneys, advocated for the right of the venture capital firm to continue funding Black women entrepreneurs, urging the U.S. Court of Appeals for the Eleventh Circuit to take action in support of the group.
“Using a law to protect newly freed enslaved people from discrimination as a basis to stop charities from investing in women of color entrepreneurs is not only legally wrong, it defies common sense,” said James. “Historically marginalized communities have long been overlooked by traditional banks and investment firms, and organizations like Fearless Foundation provide access to capital that allows small business owners and entrepreneurs to thrive.”
“I will always use my office to advance the cause of true justice and equality, and I am proud to take a stand in support of groups that help uplift, empower, and inspire,” she added.
