Businesses owned by women of color have another door to knock on.
Richelieu Dennis, the founder of Sundial Brands—manufacturer and maker of the skin care and hair care lines Shea Moisture and Nubian Heritage—has launched a $100 million fund that invests in female entrepreneurs of color.
The fund, called the New Voices Fund, launched in July and invests in both start-ups and established companies.
Start-ups led by women of color, as well as established companies and community-based businesses, can receive investment and financial support from the fund to help start or scale their business. The fund’s 501(c)(3) non-profit arm, the New Voices Foundation, will provide free resources and tools in leadership development, skill building, and networking opportunities. Entrepreneurs not associated with the fund can also use the tools, according to the New Voices website.
Together the fund and the foundation provide three funding opportunities: equity investments, recoverable grants and mission-related investments. The equity investments are private equity and venture capital investments offered through the fund; the recoverable grants offered through the foundation are risk-tolerant, early-stage investments; and the mission-related investments and loans from the foundation are for businesses that require more than a grant but are not yet ready for traditional investments, the site says.
Dennis sold Long Island, N.Y.-based Sundial to Unilever in 2017; as part of the deal, $50 million of the capital was to go toward an initial investment in the new fund.
In the past 20 years, the number of women-owned businesses has doubled and continues to rise. In 2015, women owned 30 percent of the country’s businesses, accounting for approximately 9.4 million companies according to American Express Open, a subsidiary of American Express that services small businesses. By 2017, the number had climbed to 11.6 million with generated revenue of $1.7 trillion.
However, women of color fell short on the list. Only 2.2 million businesses belong to African-American women; close to 2 million are owned by Hispanic women; 1 million are owned by Asian-American women; less than 200,000 are Native American and Alaska Native women-owned and a little over 30,000 are owned by Native Hawaiian and Pacific Islander women. American Express Open stated that if the revenues for businesses owned by women of color matched those of other women-owned businesses, the U.S. would have $1.1 trillion more in revenues and 3.8 million jobs added to the market.
Dennis announced the launch at the annual Essence Music Festival in Louisiana. He also said the fund has already “invested in or committed over $30 million in black women entrepreneurs.”
So far, the New Voices site shows 19 partners, including Goldman Sachs, Harvard Business School and Morgan Stanley.