David Garcia is personally committed to empowering minority and women-owned businesses.
His parents immigrated from Colombia to the U.S. and started a family after they finished graduate school.
Growing up as a Latino in Georgia, Garcia oftentimes struggled to connect with his own identity.
“My first name is actually Juan. Most people don't know that," he said. "When you grew up here as a Hispanic in the South, you spend much of your childhood trying to fit in and pushing away your culture. Then over time, you realize the value of the culture that you grew up in and you really start to embrace that."
Now, the 37-year-old Garcia leads Hawks Ventures, a $50 million investment venture fund launched earlier this year by the Atlanta Hawks that aims to empower underrepresented communities by providing capital for long-term wealth creation.
“It's all about giving people opportunity,” Garcia said.
Investments from Hawks Ventures will vary in size. The target is about $1 million per infusion for about 25 companies, Garcia said. The VC's first infusion was smaller than that, though, with $750,000 going earlier this month to Arena Innovation Corp., a fitness startup based in San Francisco.
Arena Innovation Corp's home gym product, which retails for $2,495, makes the world “more fun and unique,” according to Garcia. The ARENA Platform focuses on muscle exercise and provides on-demand motorized resistance.The company is led by Krisna Bhargava, who co-founded it in 2020.
Hawks Ventures does not have a set amount of equity it takes per investment, Garcia said. Rather, it depends on the individual company’s performance and valuation.
Behind Atlanta Ventures
The Hawks partnered with local Atlanta venture capital firms Collab Capital, a firm committed to funding Black entrepreneurs, and Tech Square Ventures, an early-stage venture capital firm situated on Georgia Tech's campus, for guidance on how to best navigate the VC industry.
Atlanta is ahead of other major cities in investing in minority-owned startups, but disparities locally and nationally are still high.
A 2020 McKinsey & Co. analysis found that companies with more gender diversity were 25% more profitable, and 36% more profitable with greater ethnic diversity.
Hawks Ventures seeks companies that will benefit the team and State Farm Arena businesses while enhancing consumer experiences.
The VC runs alongside the Hawks' broader mission. Hawks CEO Steve Koonin said in April that the team has "totally embraced the diversity and inclusion of our city" that has allowed it to reach new heights in attendance and brand attractiveness.
Bob Rathbun, Hawks play-by-play announcer, said that under the team's executive leadership, State Farm Arena has become the "entertainment capital of the South." He said the investment fund gives the stadium an advantage in attracting fans.
“I think the brand awareness is at an all-time high for the Hawks," Rathburn said at an NBA Draft watch party the stadium hosted. "Our fanbase has become younger, more diverse and those are the things, I think have jet-propelled this explosion that we're witnessing right now."
Hawks Ventures faces challenges as a newcomer to the VC scene. Garcia said the Atlanta Ventures is in no hurry to make its next investment, which could come in Georgia or nationwide.
“We are a new fund, and we understand that,” he said. “We're being very patient and learning and taking our time.”
