Empowering Black and Hispanic Entrepreneurs: Access to Faster Funding

Introduction

Black and Hispanic entrepreneurs have contributed significantly to the economy, yet access to funding remains a challenge. This blog discusses the need for faster access to funding and institutional support to empower black and Hispanic entrepreneurship.

Revaluation of the World’s Billionaire-Backed Unicorns

• Forbes revalued the world’s billionaire-backed unicorns and found that half of the wealth of the billionaires behind unicorns has been wiped out, leaving the elite group $96 billion poorer than they were a year ago.

• In the past, Forbes valued the stakes of billionaire founders and co-founders of unicorns based on the valuations at which their unicorns last raised funding, regardless of when that had happened. A 10% private company discount was typically applied due to the lack of liquidity and less detailed financials.

• This time around, Forbes worked with three data providers who marked the unicorns’ valuations to market, similar to public companies. These valuations were determined using the performance of comparable public companies, secondary market activities, and reporting by mutual funds.

• The four unicorns that lost the most value over the last year were Clara, which raised a new round of funding at a lower valuation; Stripe, Instacart, and Checkout.com, which marked down their internal valuations lower than external investors valued them.

• Venture funding and new funding rounds for these unicorns have dried up, leading to layoffs across the industry. However, there is optimism that funding activities will pick up later in the year as the companies start to run out of cash from their last funding rounds.

Empowering Black and Hispanic Entrepreneurs

• Black and Hispanic entrepreneurs have made significant contributions to the economy, creating jobs and adding to the payroll of the US economy.

• However, the growth in black business ownership needs to accelerate in order to achieve parity with the share of Black America.

• In order to speed up this process, it is crucial to provide faster access to funding for entrepreneurs and to stop wasting their time.

• Institutional support, partnerships, and multi-year commitments from various organizations and foundations are essential in driving the growth of black and Hispanic entrepreneurship.

Challenges in Supporting Black Entrepreneurs

• The process of qualifying for funding is repetitive and time-consuming for black entrepreneurs, which hinders their ability to receive the necessary financial support to grow their companies.

• Initiatives to support black entrepreneurs have long and complex cycles, leading to delays in receiving funding, especially as they start to scale their companies.

• While there is funding and support available for black and Hispanic entrepreneurs at the initial stages, the availability of funding decreases as they start to scale their companies, making it extremely challenging for them to access the growth capital they need.

Alex Earl Brand and Imperfections

• The Alex Earl brand is about being unapologetically yourself and not being afraid to show imperfections.

• Alex gained a following by sharing her struggles with acne, which resonated with many people who appreciated the realness in her content.

• She consciously chose to show her imperfections, like struggling with acne, to break away from the facade of perfection often seen on social media.

The Evolution of a Creator

• The interviewee describes her journey as a content creator on TikTok, initially struggling with self-consciousness about her skin when appearing on camera, and using filters and makeup to hide it.

• Over time, she decided to embrace her authentic self and shared a video without filters, which was positively received by her audience and led her to continue in that direction.

• She found her niche by live streaming her makeup routine and interacting with her audience, which eventually led to brands reaching out to collaborate with her.

• As a junior in college, she started balancing her entrepreneurial endeavors with her studies, finding it tough but rewarding, as it allowed her to apply classroom knowledge to her real-life work experiences.

• Upon graduation, she began exploring the possibility of creating her own brand and took her time to ensure that any venture she pursued aligned with her passion and values.

• She also received a scholarship at her alma mater and aims to inspire and mentor students to follow their dreams.

• The interviewee emphasizes the importance of engagement with her audience and building a genuine connection to maintain a strong fan base and successful brand partnerships.

• She shares her approach to brand deals, highlighting the necessity of genuinely liking the product and ensuring that it aligns with her audience’s interests.

• Additionally, she manages her time on social media by engaging in real-time posting and leveraging trends to create content that resonates with her audience.

• She mentions her plans for a podcast and discusses her strategy for monetizing her platform through brand deals, partnerships, and the upcoming podcast project.

Conclusion

The growth of black and Hispanic entrepreneurship requires faster access to funding and long-term institutional support. Empowering these entrepreneurs will not only drive economic growth but also contribute to achieving parity in business ownership.

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