Amazon is launching a new initiative that seeks to support entrepreneurs from underrepresented backgrounds with venture capital (VC) funding.
The Catalytic Capital initiative will invest $150 million into VC funds, accelerators, incubators and venture studios that provide funding to entrepreneurs from marginalized environments, generally at the pre-seed and seed stages of VC funding, according to a Wednesday (Oct. 5) press release.
The eCommerce giant’s new capital scheme will back funds that focus on Black, Latino, Indigenous, women and LGBTQIA+ founders, with expectations of supporting over 10 funds and over 200 companies through the next year.
“We’ve seen incredibly innovative ideas from underrepresented entrepreneurs — from companies offering inclusive health services for women to startups helping companies mitigate climate impact for underserved communities — and we’re convinced that an inclusive investment strategy leads to better returns and innovation,” said Peter Krawiec, Amazon’s senior vice president of worldwide corporate development.
See also: Amazon, Lendistry Expand Small Business Lending Program
“We want to ensure that these companies and their founders have the same access to capital as anyone else,” Krawiec continued. “We hope that our investment will be catalytic — sparking a force-multiplying effect by inspiring others to invest in these companies, fostering inclusion and innovation, positively impacting communities, and creating generational wealth and financial return.”
Selected companies will receive capital as well as mentorship from Amazon executives, and they will also be able to access resources to support their business and technical strategy. Startups will also benefit from learning about partnership and product collaboration opportunities, per the release.
Amazon said that through this initiative, it has invested in Black-owned VC fund Collide Capital, Elevate Future Fund, Share Ventures and the Techstars Rising Stars Fund.
Read more: GETIDA Announces Strategic Investment for Its Platform for Amazon Sellers
“We are focused on addressing financial inclusion across the globe, and Collide Capital has been an investor in us from the early days,” said Carmelle Cadet, founder and CEO of FinTech startup EMTECH. “Collide has helped us to shape our vision and opened up access to future rounds of funding.
“EMTECH discovered a unique value proposition in rebuilding central banking infrastructure for the Web3 era. As a Black woman-founded tech company, having Collide getting excited about our vision was critical to our journey.”