Fintech Guava raises $2.4M to provide banking services to Black small-business owners –
Summary
Guava, a banking and networking platform targeting Black entrepreneurs, announced today the closing of a $2.4 million pre-seed round led by Heron Rock.Founded last year by Kelly Ifill, the company aims to narrow the racial wealth gap by providing financial services to Black small businesses and creators. The digital banking platform set to launch early next year officially allows entrepreneurs to check expenses, budget, transfer money, track growth and connect with other entrepreneurs looking to scale their businesses.Ifill said fostering a safe community for Black founders is a personal passion, noting that small businesses are the backbone of the U.S. economy. Guava aims to tackle the racial wealth gap head-on by facilitating the growth and resilience of Black small-business owners, creators and entrepreneurs.Ifill plans to use the money to expand her team of eight and build more credit products to provide access to capital for entrepreneurs in rural areas. Digital banks like Guava can help by providing broader access to core services, networks and liquidity.Ifill started fundraising in March and said finding investors aligned with her companys vision was paramount. [Kelly] is an incredible founder and the right person to lead in creating not just a set of financial products but, just as importantly, a community in which Black business owners can learn and grow together, Williams told TechCrunch.Lexi Reese, an angel investor in the round, echoed those sentiments.This platform will enable every business leader to take full advantage of all the opportunities that entrepreneurship offers, starting from a level playing field, Reese told TechCrunch.Additional participants in the round include Ruthless for Good Fund, Precursor Ventures, Backstage Capital and angel investor Ed Zimmerman, a founding partner at First Close Partners.Ifill said the creation of Guava is a full-circle moment in servicing the people she grew up around.