Black-Owned Tech Accelerator Gains $1 Million Grant
Summary
Plug In Ventures, a Black-owned tech accelerator, has secured a new $1 million grant from the California Office of Small Business Advocate (CalOSBA). That will include tailoring services to prepare Black entrepreneurs for VC opportunities and connecting them to potential capital investors.Our focus will be on equipping them with the skills and resources needed to develop venture-backable business models and ideas, particularly in the realm of software technology, he tells BLACK ENTERPRISE.In general, tech startup accelerators are run by seasoned entrepreneurs who help early-stage tech firms connect with investors, advance their products, and sharpen their business plans. Plug In Ventures now works with over 30 companies, including about 20 owned by Black entrepreneurs.Smith explains that his firm has provided all labor at no cost to help its founders thrive until now. But this spring, it is shifting to an equity-based model targeting 5% to 7% ownership, allowing founders to participate in its accelerator.We intend to also facilitate follow-on investment directly and through our community of investors, he says.Smith expects his firms revenue to grow conservatively by 30% to 40% this year, although he did not provide exact amounts. He expects the uptick to come from increasing the firms program base and new funding sources and expanding into new markets such as Atlanta and New York this year.With the scale back in venture capital flowing into Black and brown entrepreneurs, the work that were doing to support these enterprises is more important now than ever, he explains.