Saying that only 1.3% of the total venture capital dollars that were invested in the United States in 2021 went to a startup with a Black founder, Macy’s has partnered with Momentus Capital on a program designed to increase investment in diverse-owned and underrepresented businesses.
The new S.P.U.R. Pathways: Shared Purpose, Unlimited Reach is a multiyear, multifaceted funding program that is being launched with a $30 million investment from Macy’s and will ultimately include access to as much as $200 million in capital, Macy’s said Monday (Nov. 7) in a press release.
“As part of our social purpose platform, Mission Every One, this investment will provide access to capital resources that will advance the next generation of brands and service providers,” Macy’s Chairman and CEO Jeff Gennette said in the release. “By investing in high-growth underrepresented businesses at all stages of growth, we intend to create meaningful economic impact within our communities, while serving our customers.”
The news follows recent announcements by other retailers working to diversify their own community of vendors.
For example, Amazon announced in September that it is expanding its Community Lending program in partnership with minority-led community development financial institution Lendistry.
The program has distributed $35 million to more than 800 sellers and now aims to lend more than $150 million in the next three years to small- to medium-sized businesses (SMBs) that sell on the Amazon store in the U.S.
In a similar effort, Walmart announced in April 2021 that it was launching “an expanded early payment program” with an eye toward “supporting the long-term growth and success of diverse and minority-owned businesses.”
As part of this option, Walmart said it would be working with C2FO and that firm’s online platform for working capital.
In the Monday announcement from Macy’s, Momentus Capital Chief Investment Officer and Head of Capital Deployment Raymond Guthrie said: “Access to capital and expertise fuels mutual growth and fosters wealth creation and entrepreneurship within historically underfunded communities.”
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