Bank of America branch in Times Square, New York.

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American bank The bank announced it will provide more than $500 million in equity investments to minority and women-led fund managers to support diverse entrepreneurs. Press Release.

More than 60% of fund managers who can pull from an equity fund are led by women, more than 65% are led by blacks, more than 20% are led by Hispanics and Latinos, and more than 15% are led by Asians, Tram said. Nguyen, global head of strategic and sustainable investments at Bank of America.

The program began in 2020, and so far more than 150 funds have used equity capital to invest in more than 1,000 companies that collectively control $7 billion in capital, Bank of America said. This means supporting 1,500 different entrepreneurs and employing more than 21,000 people.

“We are working across our company to address critical needs in our communities, including the lack of access to capital that diverse business owners face when starting or growing their businesses,” Nguyen said in a press release.

So far in 2023, businesses led or founded by Black or Asian individuals have typically received about 0.9% of venture capital funding, while businesses led by Hispanic and Latino individuals have received roughly 0.94%. according to data from Crunchbase.

Total venture capital dollars invested in companies fell 36% last year, impacted by rising inflation and interest rates, and black-owned businesses 45% decreaseCNBC’s Gabrielle Fonrouge reported in February.

Bank of America also works independently with National Football League and the National Black Bank Foundation to support black- and minority-owned banks, CNBC’s Frank Holland reported.

“We are very focused on supporting our fund managers,” Nguyen said. “We are building a community, connecting them to our company and its extensive network and resources, connecting them to each other and to the wider investment community.”

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