Bank of America pledges over $500 million in equity investments to support diverse entrepreneurs through minority- and women-led fund managers.
According to Tram Nguyen, Bank of America’s global head of strategic and sustainable investments, over 60% of fund managers with access to the equity pool are women, over 65% are Black individuals, over 20% are Hispanics and Latinos, and over 15% are Asians.
Bank of America’s Investment Facilitation Program
Since its inception in 2020, Bank of America’s program has been instrumental in facilitating investment by over 150 funds in more than 1,000 companies, amounting to a combined capital management of $7 billion.
This initiative has provided support to 1,500 diverse entrepreneurs and has contributed to the employment of over 21,000 individuals.
Nguyen stated in a news release that Bank of America is committed to addressing critical community needs, including the lack of capital access faced by diverse business owners as they establish or expand their enterprises.
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Decrease in Overall Venture Capital Investment
According to the data provided by Crunchbase, ventures that were led or founded by individuals of African or Asian descent received approximately 0.9% of all venture capital funding in the year 2023, while businesses led by individuals of Hispanic or Latino descent received approximately 0.94% of all venture capital funding.
The overall amount of venture capital investment decreased by 36% over the course of the prior year, according to research that was released in February by Gabrielle Fonrouge of CNBC, as a direct result of rising interest rates and inflation.
In addition, investments in Black-owned businesses dropped by 45% over the course of the same time period.
Bank of America is also collaborating with the National Football League and the National Black Bank Foundation to support Black- and minority-owned banks, as per CNBC’s Frank Holland.
Nguyen emphasized the bank’s commitment to supporting their fund managers and building a community by connecting them with Bank of America’s extensive network and resources, as well as facilitating connections among themselves and the broader investment community.
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