With a budget of R$5 million, the Black Founders Fund will allocate resources to up to 30 high-impact businesses looking for seed capital
According to the IBGE, the self-declared black population represents more than 56% of the country's total. In the labor market, 29% of blacks own their own businesses. On the other hand, 80% does not have a CNPJ, that is, they work informally, which often means not having access to any type of investment. According to the study “Black Entrepreneurship in Brazil”, carried out by the Preta Hub laboratory, most say they started using their own savings or relying on money from family and friends. The same study shows that 30% have already been denied credit by a financial institution, without any explanation.
To help reduce inequalities in this ecosystem, Google for Startups created the Black Founders Fund. The Fund will allocate resources, without any counterpart, to companies that have active black male and female founders, created and operating in Brazil.
In November, the Fund announced the selection of six new startups founded and led by blacks in the areas of games, sports and legal solutions, divided between five states: Bahia, Minas Gerais, Paraná, Rio and São Paulo. These companies join Afropolitan, Creators and TrazFavela, startups that have already received funds from the fund in the first round. The expectation is to reach a total of 30 startups by the end of 2021 – making a total of R$5 million in contributions.
To be selected, the startup must pass evaluation criteria such as growth and impact potential, technological solutions, team composition and business vision. In addition to the resources available, the company will have a series of benefits ranging from credits in Google products, participation in programs carried out by Google for Startups to access to a specialized mentoring network to help with your challenges. The amounts invested in each company vary according to the maturity stage of the startup.
THE Sitawi works in the management of the Philanthropic Fund's resources, helping the mission of expanding racial diversity and inclusion through high-impact businesses. Vale do Dendê and PretaHub, organizations that already promote the strengthening of black entrepreneurship in Brazil, will collaborate with the initiative through training sessions for mentors and the promotion of events focused on racial diversity.
The selection process, started in September 2020, will be open for a period of 18 months, through the form for registration and indication of startups. For a complete list of selected startups, access the Black Founders Fund official website in Brazil.