Black Startup: A crowdfunding platform targeting African American entrepreneurs

Bennett Fleming and five of his fraternity brothers from Morehouse College have created Black Startup, a crowdfunding website where entrepreneurs with business ideas or projects geared toward the African American community can raise capital.

Many of the entrepreneurs will likely be black, though that’s not a requirement, Bennett Fleming said. The money, too, will likely come from African Americans or organizations that aim to encourage the community’s economic development.

“There is significant wealth in the African American community, but we don’t invest that wealth at high rates. A big reason for why we don’t invest at high rates is a lack of knowledge and sophisticated understanding of the capital markets,” Bennett Fleming said.

Many of the entrepreneurs will likely be African American, though that’s not a requirement, Bennett Fleming said. The money, too, will likely come from African Americans or organizations that aim to encourage the community’s economic development.

“There is significant wealth in the African American community, but we don’t invest that wealth at high rates. A big reason for why we don’t invest at high rates is a lack of knowledge and sophisticated understanding of the capital markets,” Bennett Fleming said.

Crowdfunding requires an entrepreneur to mine his or her social networks and use online marketing to collect small sums of money from a large pool of individual investors. There are no credit barriers to clear or wealthy contacts to tap. Such requirements have presented a challenge for minority entrepreneurs seeking bank loans or venture capital, over and above the ordinary challenges for any start-up trying to raise money.

Minorities are often excluded, intentionally or otherwise, from the networks of venture capitalists and high-net-worth individuals that are comprised largely of white men. There is evidence that minorities face discrimination when applying for bank loans.

Read more: The Washington Post