In a press release issued Thursday, Bank of America announced it would invest more than $500 million in equity investments in minority- and women-led fund managers supporting diverse entrepreneurs. More than 60% of the fund managers who are able to pull from the equity pool are women, 65% of them are Black, 20% are Hispanics and Latinos, and 15% are Asian, according to Tram Nguyen, Bank of America’s global head of strategic and sustainable investments. Bank of America says that since the program began in 2020, more than 150 funds have invested in over 1,000 companies, controlling over $7 billion in capital. This translates to support for 1,500 diverse entrepreneurs and the employment of more than 21,000 people. “We work across our company to address critical needs in our communities, including the lack of access to capital that diverse business owners face as they start or grow their businesses,” Nguyen said in a news release.
According to Crunchbase, ventures led or founded by Black or Asian individuals have received approximately 0.9% of venture capital funding in 2023, while businesses led by Hispanic or Latino individuals received approximately 0.94%. Total VC dollars put into companies last year dropped 36%, affected by inflation and interest rates, and Black-owned businesses saw a 45% drop. Bank of America is also separately working with the National Football League and the National Black Bank Foundation to support Black- and minority-owned banks. “We’re very focused on supporting our fund managers,” Nguyen said. “We’re building a community, connecting them with our company and its vast network and resources, connecting them with each other and the broader investment community.”