Vice President Kamala Harris recently announced that ten minority and women-led venture capital firms in Durham, North Carolina’s Historic Black Wall Street will receive a $32 million federal investment. This funding, part of the American Rescue Plan, aims to provide equity capital investments to historically underserved small businesses and entrepreneurs. The awards are expected to generate over $90 million in overall investments for early-stage small businesses in the state.
The funding, awarded through the State Small Business Credit Initiative (SSBCI), is projected to attract an additional $60 million in private investment. The SSBCI, established in 2010, supports states, the District of Columbia, territories, and Tribal governments in increasing lending and investing in small businesses. The American Rescue Plan expanded the SSBCI with $10 billion in funding, expected to catalyze up to $10 of private investment for every $1 of SSBCI capital.
The awardees of SSBCI funding in North Carolina are skilled in raising private funds. For instance, Symphonic Capital focuses on investing in companies addressing access gaps in health and wealth. Wocstar Capital champions women of color entrepreneurs and diverse tech teams to create wealth in communities of color. RevTechLabs, a majority female and Latina-owned entrepreneurship center, will invest in over 200 early-stage companies with traditionally underrepresented founders in financial, health, and insurance technologies. LeVert Ventures, an early-stage venture capital fund, will invest in next-generation technologies transforming the agricultural technology industry.
The surge in black business ownership, with the highest growth rate in 30 years, and the record number of small business applications in recent years highlight the importance of investments like those in North Carolina. Such initiatives play a crucial role in fostering the success and growth of small businesses, particularly those led by minorities and women.
