Emory University Launches The Only Student-Led VC Fund Focused On Minority Entrepreneurs
Emory University is ready to shake up the VC world with its first student-run venture capital fund focused on minority entrepreneurs.
The Peachtree Minority Venture Fund (PMVF) was launched at The Roberto C. Goizueta Center for Entrepreneurship and Innovation at Emory University’s Goizueta Business School.
The fund, funded by the Goizueta Business School endowment, was made to support Black, LatinX, and Native American entrepreneurs.
It currently has $1M in assets under management, and students are responsible for souring companies, conducting due diligence, and making investment recommendations to the Peachtree Investment Committee, reported Afrotech.
In a statement, Karen Sedatole, Dean of the Emory Goizueta Business School, said: “Peachtree Minority Venture Fund will invest in companies that have at least one founder who identifies as Black/African American, LatinX, or Native American.
“The founder must also have a controlling equity stake in the company.”
Last year 40% of new businesses were started by women, and 47% of that figure were minority women.
Latinos are the fastest-growing group of entrepreneurs in the US. According to Stanford University, Latino business owners grew 34% over the last ten years compared to just 1% for all others.
Additionally, there are 2.5+million U.S. Black-owned businesses.
But a small slice of funding goes to minority groups and last year just 2.6% of venture went to them and 2.2% went to women – that’s $4.2 billion out of an $87.3 billion pie.
According to Project Diane, as of January 2021, only 93 Black and 58 Latinx women have raised over $1M.
How does the fund work?
Checks distributed will be dependent on the entrepreneur’s current stage.
A $5,000 to $15,000 investment will be for the Angel/Friends & Family Gap, where founders may have great ideas and even a product or service but aren’t currently in the revenue phase.
For those in the Seed Stage, a $25,000 to $50,000 investment will be made into companies with traction and have already received funding from other sources as a part of an institutional round of financing, according to Afrotech.
Click here to learn more about the Peachtree Minority Venture Fund.