Bank of America has announced its commitment to provide more than $500 million in equity investments to fund managers led by women and minorities in order to support diverse entrepreneurs. Over 60% of the fund managers who can access the equity pool are women-led, while more than 65% are led by Black individuals, over 20% by Hispanics and Latinos, and more than 15% by Asians. The program, which began in 2020, has already supported over 150 funds, enabling investments in over 1,000 companies with a combined capital of $7 billion. This has directly benefited 1,500 diverse entrepreneurs and created employment for over 21,000 people.
Bank of America’s initiative aims to address the critical issue of limited access to capital that diverse business owners face when starting or growing their businesses. The statistics show that in 2023, ventures led or founded by Black or Asian individuals received only around 0.9% of venture capital funding, while businesses led by Hispanic and Latino individuals received approximately 0.94%. These disparities highlight the need for increased support for underrepresented entrepreneurs.
The bank’s commitment aligns with its broader efforts to foster diversity and inclusion. Bank of America is also collaborating with the National Football League and the National Black Bank Foundation to provide support to Black- and minority-owned banks. By working closely with fund managers, Bank of America aims to build a community, connect them with its extensive network and resources, and facilitate connections within the investment community.
Bank of America’s commitment to investing in diverse fund managers and supporting underrepresented entrepreneurs underscores its dedication to promoting economic empowerment and addressing systemic inequalities. Through these efforts, the bank aims to create a more inclusive and equitable business landscape that benefits diverse communities and drives economic growth.
Read More: click here