Techstars and J.P. Morgan Form Partnership to Invest in Diverse Entrepreneurs
Techstars, the operational investor, has partnered with J.P. Morgan, the global leader in financial services, to invest in diverse entrepreneurs. J.P. Morgan will contribute more than $80 million to diverse entrepreneurs and founders in the country and support over 400 companies through 37+ programs in 9 cities to create opportunities for wealth creation.
This initiative, which is open to entrepreneurs of all backgrounds, is aimed to give equal access to funding and support to Black, Hispanic and Latino, Indigenous American, and Pacific Islander entrepreneurs.
Black entrepreneurs received just 1.2 per cent of U.S. venture capital funding in the first half of 2021. According to data, in 2021, Latino founders raised only 2 per cent of U.S. venture capital investments. This association will help bridge the racial and ethnic wealth divide through Techstars' unique startup accelerators providing access to one-on-one mentorship, capital, and optimised programming for early-stage founders.
Mäelle Gavet, CEO of Techstars, said: "The data and experience show founders from diverse communities and backgrounds represent an untapped market with tremendous financial upside for investors, the entrepreneurs, and the communities they operate in. With J.P. Morgan, our goal is to be more intentional in the way our programs attract, support and invest in Black, Latino and other underrepresented founders."
Kristin Kallergis Rowland, global head of alternative investments at J.P. Morgan Private Bank, said: "Together with Techstars our goal is to improve access to the capital and other resources needed by underrepresented entrepreneurs to start, fund, and then scale their businesses."
This partnership will further support diverse founders of high-growth early-stage startups to generate income, strong influence, and wealth creation.
Tiffany Lewis, head of diverse manager strategy at J.P. Morgan Private Bank, said: "The multi-year program will focus on entrepreneurs and founders that have been overlooked by traditional venture capital sources. This new commitment will advance the shift toward more equitable economic opportunities through access to financial services, mentorship, quality education and training, and promoting inclusive business practices.”
Over the following three years, more than 400 firms will benefit from the funding, which will be divided through 37 Techstars programmes in nine U.S. locations. Atlanta, Chicago, Detroit, Miami, and Washington, D.C., the first five cities, is launching today with a call for applications from entrepreneurs of all backgrounds. The initiatives in Los Angeles, New Orleans, New York, and Oakland will begin in 2023. All nine of these high-growth technological ecosystems were chosen for a variety of strategic reasons, including the importance of their varied populations, which each programme aims to represent.
Co-founder of Techstars portfolio company Cherry Blossom Intimates Jasmine Jones said: "I met more than 90 mentors who helped me to refine my business model, build my cap table, and raise $1.25 million in 30 days. What made me excited to be a part of the Techstars program is that it opens doors to new possibilities and business potential."
Cherry Blossom Intimates is both an online medical facility and a physical boutique. Jasmine also launched Myya, the first direct to consumer post-mastectomy brand that takes insurance and connects patients to professional fitters for post-mastectomy bra and prosthesis fits from the comfort of their own homes.
The program is available to entrepreneurs of all backgrounds, but the companies will focus their recruitment efforts on Black, Latino, and Hispanic entrepreneurs, as well as individuals who identify as racially and ethnically diverse. These initiatives will allow for maximum programme impact while also aiming to provide a stronger equality and inclusion perspective to the investing community as a whole.
