6 Gen Labs is raising money to give to Black founders cause no one else will. Our campaign will contribute to underestimated, under-funded, and undeniably scrappy Black entrepreneurs!
6 Gen Labs is launching long in time the making fellowship targeted and designed specifically for Black entrepreneurs.
Black entrepreneurs have a unique set of challenges that other groups do not face. Our goal is to close the funding gap and develop an ecosystem that is targeted to Black founders so they are equipped to build companies that are sustainable and scalable.
This requires the infusion of capital, strategic partnerships, and ongoing mentorship at every phase of business--from seed to exit. Funding is the biggest obstacle. Prior to the death of George Floyd, Black founders received .001% of venture funding. As of the second quarter of 2021, black entrepreneurs received a historic $1.4 billion dollars in funding across several industries, yet this accounted for less than 2% of total venture funding. Black businesses also faced bias when applying for Covid-19 relief funding. According to a report published in August 2020 by the New York Federal Reserve Bank (NYFR), 32% of Black businesses were approved for Covid-19 relief funding while 49% of white businesses were approved and received the total amount requested. The result was more than 42% of black-owned businesses had to close their doors for good since the pandemic started.
What's more...black women and men are the largest growing group of entrepreneurs in the country, yet less than 2% of their businesses reach seven figures in revenue. How do we begin to build companies that reach higher revenues, higher valuations, and lead to mergers and acquisitions or IPO's? What's needed to propel black-led companies to scale to eight and nine-figure companies at increasing speeds so that they can create wealthy communities? Growth leads to sustainability and this is a major pain point for Black business owners.
What 6 Gen Labs is going to do about it
This project is the first step to reconciling long-standing discrimination that black entrepreneurs face in the capital markets. At the same time, our mission is to build out an infrastructure in which we start to galvanize our own dollars and social capital so that we can fund our own damn companies, forge partnerships that transform into larger institutions, and establish an ecosystem in which we support each other and foster collaboration.
At the start of 2022, we are launching our first cohort of 15-20 Black founders who will participate in a 5-week fellowship in which they will receive access to educational programming, a network of strategic partners that help drive growth and valuations, executive training, ongoing mentorship upon completion and most importantly $5,000 to infuse in their companies. There is no minimum revenue requirement. That is the point.
6 Gen Labs is designing real solutions for Black founders. We are just getting started and appreciate your support in building this airplane while flying!
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