Woman-Led Investment Fund Goes Where Few Black-Led Funds Have Gone Before
Oscar Perry Abello
The Enterprise Center in Philly pioneers a new idea to fill in the equity gap by getting private investment fund managers to invest in more women- and minority-led businesses.
The Enterprise Center’s new Innovate Capital Growth Fund is specifically seeking out minority- or women-owned businesses that have hit a wall. They have between $2 million and $10 million in revenue and have probably gotten there with a loan or two and some non-financial assistance from The Enterprise Center’s other programs.
With an equity investment from the new Innovate Capital Growth Fund on their balance sheet, they’ll be able to use some cash for direct investments in the business but also to pay off debt or just hold more equity on their balance sheets, so they look more attractive to larger lenders and other investors. The fund intends to boost each portfolio company to that next level that seems so rare among minority and women-owned businesses.