Black Unicorn Factory Becomes Largest Black-Owned VC Firm In The US
Black Unicorn Factory (BUF), a Los Angeles-based venture capital firm, has officially become the most prominent Black-owned venture capital firm in US history by the number of startups funded and total equity issued. The firm has provided over $500 million in alternative investment capital by backing over 150 early-stage companies across various industries.
“Cash or other consideration”
BUF differs from other firms that rely solely on cash-based investing, as it leverages non-traditional, SEC-compliant methods rooted in the concept of “cash or other consideration” as allowed under exemptions like Reg CF, Reg C, Reg D, Reg A, and Rule 701.
Many have overlooked the power of ‘other consideration’ under SEC rules. We’ve used it to fuel businesses—especially those owned by minorities—who just needed a different path to capital and scale,” Johnny Stewart, Founder and CEO of Black Unicorn Factory, said in a press release.
Turning value creation into equity
BUF’s comprehensive approach turns value creation into equity. Contributors can earn stock through measurable efforts, which are all tracked and disclosed via audit-ready general ledger entries. BUF mixes financial and cultural capital to rethink what a venture capital firm can achieve.
It introduced the Follow Me for Equity (FMFE) program, which is managed via a mobile app. Participants, such as gig workers and micro-influencers, complete a structured roadmap of 100 social promotional tasks, earning shares along the way.
“Cash isn’t the only form of investment capital; social media engagement is also a real form of investment capital, too ” Stewart says.
Image: Adeolu Eletu
