June 15th 2023.
Bank of America Corp announced on Thursday that it has committed more than $500 million in equity investments to funds led by minority and women entrepreneurs, more than doubling its initial commitment of $200 million. These funds have invested in over 1,000 companies in 40 states, led by 1,500 diverse entrepreneurs and employing over 21,000 people.
Tram Nguyen, Global Head of Strategic and Sustainable Investments at Bank of America, explained, "As a company, we looked at how to support women and diverse entrepreneurs. Capital to under-resourced entrepreneurs has the effect of unlocking their potential to grow their businesses locally and to create economic opportunity."
Nguyen added, "Typically these fund managers have the experience of having founded businesses before or experience investing as part of a larger fund. Now they're taking that experience and going off to start their own fund."
One such fund is Zeal Capital Partners, founded by Nasir Qadree, which provides founders with the resources they need to scale their business to the next level of growth. This fund is an early investor in Esusu, one of the few Black-owned unicorns, the statement said. Unicorn refers to unlisted companies that have a valuation of $1 billion.
U.S. banking giants including Bank of America have ramped up their racial-equity pledges after the killing of George Floyd, a Black man, by a police officer sparked global protests in 2020. Nguyen said, "Each time we support a minority or women-led fund, they in turn support diverse entrepreneurs, which ultimately helps us toward achieving our goal to advance racial equality and economic opportunity."
Recently, Bank of America also named Neighborhood Builders Racial Equality Awardees, who are dedicated to advancing opportunities for minority communities. This clearly demonstrates Bank of America’s commitment to supporting the businesses of minority and women entrepreneurs.
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