With several headlines concerning the racial wealth gap this week, the tech and financial services ecosystems are stepping up to address the matter. In addition to the US administration pledging billions to reduce the racial wealth gap, financial services companies committed ~$50b worth of racial equity pledges (Chase alone accounted for $30b).
According to Creative Investment Research, unfortunately only ~$250m have been spent or committed to specific initiatives thus far. The venture/startup certainly cannot solve this massive challenge, but it can help. Some companies are stepping up their commitment to the Cap Table Coalition –an attempt to diversify the VC ecosystem by opening investment opportunities to a diverse set of angel investors. Specifically, by reserving 10% of rounds (typically involves future commitments) to such investors.
Startups now have a variety of tools to increase engagement with diverse hires and angel investors. The latter play a meaningful role in the early days of company creation, with so-called “mafias” that emerge in high-growth, tech enterprises. Beyond wealth formation, it perpetuates engagement in the ecosystem, feeding talent and resources back into it.
We previously wrote about Philanthropy in the 21st Century (Apr 24, 2021). Clearly, there’s also potential to innovate in the angel investing sphere, with change already underway. And, for those feeling dizzy by the pace of innovation, there are always some old people out there to help you relax… Friends: The Reunion!
MoneyLion reports strong first quarter 2021 results - MoneyLion reported strong first-quarter 2021 results - Q1 2021 net revenue increased 98%, reaching $33.2m, compared to $16.8m in Q1 2020, and total customers grew by 80% to 1.8m in the first quarter, compared to 1.0m in Q1 2020. Read more
Reonomy to be featured in 2021 Financing CRE Forum - Portfolio company Reonomy will be featured on 6/10 at 11AM PDT in a panel discussion with experts from @jpmorgan real estate banking, Mesa West Capital, and MREC Management moderated by @richsarkis. Read more
Vestwell leverages Bambu's Wealth Management API to build an advisor managed account offering natively into its platform - By leveraging Bambu's wealth management API, Vestwell and its partners will be able to offer personalized investment strategies to help their clients better prepare for retirement based on actionable retirement goals. Read more
App focuses on racial wealth disparities by boosting credit scores- and home ownership - Portfolio company Antler's My Home Pathway is addressing the fact that the homeownership rate for blacks is currently about 44% vs. around 74% for whites, according to U.S. Census Bureau data. But that gap isn’t just huge. It’s also a major contributor to racial economic disparities. Read more
Rise Of The Angels
The Cap Table Coalition aims to diversify the VC ecosystem - It seeks to do so by by creating investment opportunities for Black, Latinx, LGBTQ+, women, and other traditionally marginalized investors. The Coalition is made up of high-growth startups, VC firms, and emerging fund managers who want to help close the racial wealth gap. Read more
‘Shopify Mafia’ aims to become bigger force in angel investing - Dubbed Shopify Angels by its participants, the chat has become a gathering spot for a new generation of investors connected through their past or present work for Canada’s most prominent tech company. Read more
FinTech Collective Newsletter
Curated News with Context
Delivered every Saturday, the weekly newsletter, produced by our team, provides a tightly edited rundown of global fintech news, along with a bit of our original analysis.