BOULDER, Colo.--(BUSINESS WIRE)--Techstars today announced a new accelerator program powered by J.P. Morgan that will invest more than $80 million in diverse entrepreneurs and founders across the country. Techstars and J.P. Morgan began partnering in 2021 to develop this program focused on advancing equitable access to funding in major economic centers.
In the first half of 2021, Black entrepreneurs received just 1.2 percent of U.S. venture capital funding. Additional data show that Latino founders raised only 2 percent of U.S. venture capital investments in 2021. This partnership seeks to help bridge the racial and ethnic wealth divide through Techstars’ unique startup accelerators that provide access to capital, one-on-one mentorship, and customized programming for early-stage entrepreneurs.
“The data and experience show founders from diverse communities and backgrounds represent an untapped market with tremendous financial upside for investors, the entrepreneurs, and the communities they operate in. With J.P. Morgan, our goal is to be more intentional in the way our programs attract, support and invest in Black, Latino and other underrepresented founders,” says Mäelle Gavet, CEO of Techstars.
“Together with Techstars our goal is to improve access to the capital and other resources needed by underrepresented entrepreneurs to start, fund, and then scale their businesses,” said Kristin Kallergis Rowland, global head of alternative investments at J.P. Morgan Private Bank.
With 27% of Techstars’ existing portfolio company CEOs identifying as Black, Hispanic and Latino, Indigenous American, American Indian or Alaska Native, Native Hawaiian or Other Pacific Islander, Middle East/North African, this partnership is designed to create further support for diverse founders of high-growth early-stage startups to generate greater income, stronger influence, and wealth creation.
“The multi-year program will focus on entrepreneurs and founders that have been overlooked by traditional venture capital sources,” said Tiffany Lewis, head of diverse manager strategy at J.P. Morgan Private Bank. “This new commitment will advance the shift toward more equitable economic opportunities through access to financial services, mentorship, quality education and training, and promoting inclusive business practices.”
Over the next three years, the investment will be distributed to more than 400 companies through 37 Techstars programs in 9 U.S. cities. The first five cities, Atlanta, Chicago, Detroit, Miami, and Washington D.C. launch today with a call for applications from entrepreneurs of all backgrounds. The Los Angeles, New Orleans, New York and Oakland programs will launch in 2023. All nine of these high-growth technology ecosystems were selected for several strategic reasons including the prominence of the diverse make-up of their populations which each program seeks to reflect.
Each of the three-month programs will support founders like Jasmine Jones who went through Techstars’ Kansas City Accelerator in 2020.
Co-founder of Techstars portfolio company Cherry Blossom Intimates, Jasmine describes her Techstars experience as opening doors of possibilities with no limit to success. “I met more than 90 mentors who helped me to refine my business model, build my cap table, and raise $1.25 million in 30 days.”
“What made me excited to be a part of the Techstars program is that it opens doors to new possibilities and business potential,” Jones said. “The network is invaluable.”
Cherry Blossom Intimates is an online, accredited medical facility and brick and mortar boutique. During Techstars, Jasmine also launched Myya, the first direct to consumer post-mastectomy brand that also accepts insurance and connects patients to certified fitters for post-mastectomy bra and prosthesis fittings from home.
Measuring impact and ensuring accountability within this multi-city U.S. program is paramount, as these small steps forward can help narrow the gap in the racial wealth divide and growing economic inequality. While the programs are open to founders of all backgrounds, their recruitment efforts will have a focus on Black, Latino and Hispanic entrepreneurs and those who identify with being racially and ethnically diverse. Progress will be tracked regularly and shared with senior leadership across both organizations. These efforts will further allow for maximum program impact and aim to bring an enhanced equity and inclusion lens to the wider investment community.
The Techstars worldwide network helps entrepreneurs succeed. Founded in 2006, Techstars began with three simple ideas—entrepreneurs create a better future for everyone, collaboration drives innovation, and great ideas can come from anywhere. Now we are on a mission to enable every person on the planet to contribute to, and benefit from, the success of entrepreneurs. In addition to operating accelerator programs and venture capital funds, we do this by connecting startups, investors, corporations, and cities to help build thriving startup communities. Techstars has invested in more than 2,900 companies with a combined market cap of approximately $159 billion. www.techstars.com
About JPMorgan Chase
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services Firm with assets of $3.2 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands.