- An $ 80 million investment backed by JP Morgan will support more than 400 companies in at least 37 programs in nine cities to create wealth creation opportunities that are often constrained by institutional, structural and systemic barriers.
- Open to founders of any orientation, this program is designed to provide equal access to finance and support for entrepreneurs of African, Hispanic, Latino, Native American and Pacific Island descent.
BOULDER, Colorado – (BUSINESS WIRE) – Techstars today announced a new acceleration program organized by JP Morgan that will invest more than $ 80 million in various entrepreneurs and founders nationwide. Techstars and JP Morgan began collaborating in 2021 to develop this program, which focuses on promoting equal access to finance in major economic centers.
In the first half of 2021, black entrepreneurs received just 1.2% of US venture capital funding. Additional data indicates that Latin American founders accounted for only 2% of US venture capital investments in 2021. This partnership is designed to bridge the racial wealth gap through Techstars’ unique startup accelerators. The grant provides access to capital, one-on-one mentoring, and personalized scheduling for early stage entrepreneurs.
“The data and experience show that founders from diverse communities and backgrounds represent an untapped market with excellent financial benefits for investors, businesses and the communities in which they operate. Our goal with JP Morgan is to have a greater impact on how our programs attract, support and invest in black, Hispanic and other underrepresented founders, ”said Mäelle Gavet, CEO of Techstars.
“Together with Techstars, our goal is to improve access to the capital and other resources that underrepresented entrepreneurs need to start, finance and then grow their businesses,” said Kristin Kallergis Rowland, Global Head of Alternative Investments. at JP Morgan Private Bank.
With 27% of the company’s CEOs from Techstars’ existing portfolio identifying themselves as Black African, Hispanic, Hispanic, Native American, Amerindian or Alaska Native, Native Hawaiian, or other Pacific Islander residing in the Middle East / North Africa, this partnership aims to serve several founders of Providing additional support to early stage and high-growth startups so they can create more revenue, influence and prosperity.
“The multi-year program will focus on entrepreneurs and founders who have been overlooked by traditional sources of venture capital,” said Tiffany Lewis, director of mixed-race strategy at JP Morgan Private Bank. “This new commitment will advance the shift to fairer economic opportunities through access to quality financial services, mentoring, education and training and will encourage inclusive business practices.”
Over the next three years, the investment will be rolled out to more than 400 companies across 37 Techstar programs in nine US cities. The top five cities, Atlana, Chicago, Detroit, Miami and Washington DC, are starting today to invite entrepreneurs from all backgrounds to apply. The Los Angeles, New Orleans, New York and Oakland programs will begin in 2023. All nine of these high-growth technology ecosystems were chosen for a variety of strategic reasons, including the different existing composition of populations that each program seeks to reflect.
Each of the three-month programs will support founders such as Jasmine Jones, who graduated from the Techstars Kansas City Accelerator in 2020.
As co-founder of Techstar’s portfolio company Cherry Blossom Intimates, Jones describes her experience at Techstar as opening the door to opportunities with no barriers to success. “I met over 90 mentors who helped me build my business model, create my capitalization table, and raise $ 1.25 million in 30 days.”
“What I find particularly interesting about joining the Techstars program is that it opens the door to new opportunities and business potential,” said Jones. “The network is invaluable.”
Cherry Blossom Intimates is an accredited medical facility that operates online and conventionally. During the Techstars program, Jones also launched Myya, the first post-mastectomy brand that is also billable for health insurance and connects patients with certified post-mastectomy bra fittings and home-made prosthetic samples.
Measuring influence and securing accountability within this US multi-city program is pervasive, as these small steps forward help narrow the racial gap in wealth and growing inequality of economic opportunity. While the programs are open to founders of all backgrounds, the promotion focuses on entrepreneurs of African, Hispanic and Hispanic descent and those who identify as ethnically diverse. Progress is regularly monitored and reported to senior management in both organizations. These actions will also enable the program to achieve maximum impact. They are designed to better target the broader investing community’s perspective on equity and inclusion.
Techstars’ worldwide network helps entrepreneurs succeed. Founded in 2006, Techstars started with three simple ideas: Entrepreneurs create a better future for everyone, collaboration drives innovation, and great ideas can come from anywhere. We are now committed to enabling every person on earth to contribute to and benefit from business success. In addition to running accelerator programs and venture capital funds, we do this by connecting startups, investors, corporations and cities to help build thriving startup communities. Techstars has invested in over 2,900 companies with a combined market capitalization of approximately $ 159 billion. www.techstars.com
About JP Morgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services company with $ 3.2 trillion in assets and operations worldwide. The company is a leader in investment banking, consumer and small business financial services, commercial banking, financial transaction processing and wealth management. As a component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s largest corporate, institutional and government customers under the JP Morgan and Chase brands.
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