The scheme will involve increased investment in black-led companies and capital firms as well as the formation of an accelerator for black entrepreneurs.
US-based internet and technology conglomerate Alphabet pledged yesterday to commit $100m to investing in black-led companies and investment funds as well as organisations supporting black entrepreneurs.
Alphabet is one of several large companies to respond to the increased public presence of the Black Lives Matter movement in recent weeks, and CEO Sundar Pichai announced the latest plans having already pledged $12m to organisations tackling racial inequality earlier this month.
The commitment will include an increased contribution to Plexo Capital, the venture capital firm founded by Lo Toney, formerly a partner at Alphabet corporate venturing unit GV, with the intent of funding companies with black or female founders. It closed its first fund at $42.5m in December 2019.
Alphabet also intends to provide non-dilutive funding to black founders that make up part of the Google for Startups network as part of the $100m pledge.
The plans were announced alongside the launch of Google for Startups Accelerator for Black Founders, a three-month accelerator for startups founded by black entrepreneurs.
The corporate has also pledged to provide $15m in training for black jobseekers, and more than $10m to fund education, equipment and economic opportunities through its developer ecosystem.
Alphabet’s commitment came after telecommunications and internet group SoftBank announced a $100m vehicle earlier this month called the Opportunity Growth Fund to invest in startups led by founders of colour.