There is a huge push to help unlikely entrepreneurs make it in the startup community -- and by unlikely, that means those who aren't white men living in big cities. The Focus Fund is one such initiative. It is a new new $10 million fund led by JumpStart Inc., an Ohio-based nonprofit that helps tech entrepreneurs find capital and resources to grow their businesses, for women and minority entrepreneurs. As Fast Company Exist quotes, "Talent may be evenly distributed, but opportunity is not."
The Focus Fund will make investments in about 20 tech startups and yet it is not hoping to become the affirmative action for the startup world. The Focus Fund will widen its horizons to invest in small companies not based in Silicon Valley.
Why This Trend Is Growing
- Diversity Investment Funds
- Opportunities for investing in startups run by women and minorities are expanding beyond Silicon Valley.
- Impact Investment Funds
- Investment funds are becoming increasingly focused on making a social impact beyond just generating profit.
- Nonprofit Investment Funds
- Nonprofits are stepping up to provide capital and resources for startups run by underrepresented groups in the tech industry.
Industries Being Reshaped
- Venture Capital
- Venture capital firms can focus on investing in startups run by women and minorities, broadening their portfolios while promoting diversity and inclusion.
- Nonprofit
- Nonprofits can create their own investment funds to provide capital and resources for startups run by underrepresented groups, promoting social impact and economic growth in their communities.
- Technology
- The tech industry can support diversity investment funds by partnering with and providing resources to startups run by women and minorities, fostering innovation and promoting diversity and inclusion.
