The Black Economic Alliance Entrepreneurs Fund LP, which is raising $50 million to support young startups, is over halfway towards its goal. As stated in a filing last week with the Securities and Exchange Commission, the fund has currently raised $28.5 million and is led by venture capitalist Melissa Bradley.
The Washington Business Journal reported that she shared that the fund’s investment will focus on young companies that specialize in products or services in four key areas: financial inclusion, health and wellness, sustainable communities, and what she called “narrative change”—companies focused on disrupting existing industries.
“There’s a real market opportunity, particularly within those four pillars, to fill a much-needed capital gap to help businesses go from $1 million to $3 million and really begin to position them for larger investments and ultimately an acquisition,” she added.
The Black Economic Alliance Entrepreneurs Fund LP
The DC nonprofit launched in May 2021 to support pre-seed and seed-level startups led and founded by Black entrepreneurs. The fund gained backing from Wells Fargo & Co. as an anchor sponsor; the bank has dedicated $20 million over five years to the fund.
Bradley says the fund’s plan and reach have expanded. She discreetly joined the Black Economic Alliance Foundation’s fund as a managing partner 10 months ago. Bradley told The Washington Business Journal that the fund will not just focus on Black entrepreneurs but will serve a more extensive range of “overlooked and underserved” entrepreneurs. It will also support companies beyond the seed stage up to Series B rounds.
Keeping a low profile
With years of experience creating deals for underserved entrepreneurs and connecting with investors with impressive records of backing founders that other investors often gloss over, Bradley brings a wealth of knowledge to this role.
Since its launch, the fund has been busy, and Bradley shared that she is only speaking out as it filed the public disclosure with the SEC last week.”We have been intentional about staying off the radar. We have several law firms who’ve advised us to kind of keep a low profile,” she adds.
The fund maintains a low profile, partly due to the number of companies scaling back DEI initiatives nationwide. However, Bradley is adamant that the Entrepreneurs Fund will fulfill its purpose and won’t face experiences similar to those of the Fearless Fund. This Atlanta-based investment firm provided grants to Black entrepreneurs that shut its grant program after being sued by the same activists who successfully challenged college admission policies.
Image: John Lamparski / Stringer / Getty Images
