DivInc
- Yes
- Connecting small business owners and key stakeholders such as investors, local policymakers, and mentors with the relevant experience to improve coordination, collaboration, and knowledge bases within the small business ecosystem
- Supporting and fostering growth to scale through comprehensive and relevant technical support assistance such as legal aid, fiscal management for sustainability, marketing, and procurement
Through a system of wraparound support, DivInc works with BIPOC and women founders to secure access to capital, networks, and education to transform their businesses and optimize their chances for success. Participants attend a 12-week program that presents both a general and customized curriculum based on specific needs, best practices workshops, mentorship, and coaching. The components of the program are designed to explicitly address the needs of underrepresented entrepreneurs, taking into account the voices of those who have weathered the startup process and those who have attended and given feedback on past accelerators.
We recognize that we work with founders who are both at a delicate point in the entrepreneurial journey and who historically face tremendous amounts of discrimination. We support them in some of the most essential areas of the startup process, including access to capital (human and social as well as financial), marketing, and other professional skills. We focus on the elements that are most likely to quickly and sustainably move the needle for their growing businesses.
The world of entrepreneurship is challenging for all involved, but that is especially true for women and people of color. Latinx and Black entrepreneurship drive economic prosperity, but only 1% of venture capital goes to Black and Latinx entrepreneurs, and less than 1% goes to Black and Latina women. The pandemic disproportionately affected entrepreneurs of color; African American businesses experienced a 41% drop and Latinx business owners fell by 32%. These findings of early-stage losses to small businesses have policy implications and indicate longer-term ramifications for job losses and economic inequality.
This is a problem driven by institutional racial and sexual orientation bias at every level. We know we cannot solve a challenge of this magnitude alone, but we are striving to do everything possible to level the playing field. Our program bolsters the ambitions of all women and people of color in our communities; to date, we have served 89 startups in Houston and Austin, and hope to serve 80 more over the next two years.
Our alignment with the Challenge begins with our vision statement: “Our vision is a world that is authentically diverse, equitable and inclusive, where social and economic disparities no longer exist.“ The challenge’s focus on leveling the playing field for women and BIPOC populations and businesses is also the guiding principle of our organization.
We bring this principle to life with a wraparound system of support that revolves around an intense 12-week accelerator. The Venture Capital Lab for Women and BIPOC Founders provides a unique culture of support and equips diverse entrepreneurs with strategies critical to creating successful companies. Providing equitable access to resources and opportunities is essential to leveling the playing field. DivInc enables the next generation to see what is possible, because oftentimes people cannot aspire to be something they cannot see. DivInc’s portfolio of entrepreneurs form a bond with each other and with DivInc, thus creating DivInc communities of support for current and future BIPOC entrepreneurs.
Our greatest source of pride - and the greatest endorsement of our approach - is the success of those who have completed our program. You can read more about past participants and the successful businesses they run on our website.
We directly serve women and people of color who are starting businesses and in need of startup support. Less than 1% of entrepreneurial funding goes to Black and Latinx women, putting them at a stark disadvantage relative to white male founders.
A Business Accelerator Intensive Program is our solution to these barriers. Founders who may have been unable to access mentorship, talent pools, education and networking are given the coaching and ongoing support they need to access capital and develop robust, successful business plans. While we cannot level the playing field in venture capital alone, we are creating a model that can be repeated in communities across the country.
Ultimately, the makeup of those we recruit is composed heavily of underrepresented founders:
57% Female
43% Male
44% Black
17% Latinx
14% Asian
22% White (women)
3% Middle Eastern
We are confident that these participants’ lives are fundamentally changed by participating in the program. Businesses at this stage of growth face a high risk of failure; by giving them resources, connections to investors, and mentorship, we set them on a path to success that will empower them to build wealth and create opportunities for other historically marginalized people.
- Yes
This solution is currently being implemented in Texas in the cities of Austin and Houston
Our goal is to both launch and sustain small businesses. This is reflected directly in our mission statement: “to generate social and economic equity through entrepreneurship.” We operate on the belief that entrepreneurship is crucial to leveling the playing field and opening the doors to opportunity to women and BIPOC communities. The launching, growth, and ultimate success of small businesses will be crucial to reaching that goal, and we are committed to working with funders throughout their journey.
Problem: Although entrepreneurship is key to building generational wealth, as a specific example, Black, Latinx and women founders are not experiencing the same opportunities and outcomes as their white, male counterparts. According to the US Census Bureau, on average, white-led firms generate 10 times the revenue of black-led firms and eight times the revenue of Latino-led firms (source).
Activities: DivInc has developed a system of 4 intertwined programs that provide a progressive path for women and BIPOC entrepreneurs from the ideation stage to the seed stage of development. To accomplish this, we remove the 3 critical barriers that entrepreneurs face: access to knowledge, access to networks and access to capital. DivInc does not tackle this alone; we mobilize our local communities to attract a variety of mentors, subject matter experts, partners and talent that enhances and broadens the ecosystem. Collaboration is a core value at DivInc. As part of our programming and events, we engage people who otherwise may never have met one another or have never explored the opportunities within the ecosystem.
Short-Term Outcomes: Companies participating in our Tech Accelerator Program receive crucial support as they advance into the marketplace. Currently, each participant receives a $10,000 non-dilutive grant at the completion of the program. In addition, it culminates with a Showcase Day with 250+ people in attendance and over 3,500 online views, as well as an Investor Day which consists of curated meetings with potential investors.
Long-Term Outcomes: Giving early-stage support to underrepresented entrepreneurs is one of the most concrete, effective actions that can be taken to reduce the generational wealth gap. Addressing the inherent inequality that exists among startups would not only close the racial wealth gap, but also create 9 million new jobs in the economy and boost the national income by $3 billion. (source). Additionally, the average revenue of Black and Latinx-owned businesses in the US is less than $100K. DivInc’s goal is to have an average revenue amongst our portfolio companies of $1M+ over the next 3-5 years.
- Scale: a sustainable product, service or business model that is active in multiple communities, which is capable of continuous scaling, focusing on increased efficiency.
- Growth: A registered 501(c)(3) with an established product, service, or business model in one or several communities, which is poised for further growth. Organizations should have a proven track record with an annual operating budget.