Four local startups have landed $100,000 in non-dilutive funding as part of the 2021 cohort of Google's Black Founders Fund.
They're among 50 startups nationwide selected for the program, which has a $5 million fund. In addition to the money, Google provides the founders with cloud credits, Google.org Ads grants and other support. Startups in Dallas and Houston were also in the mix.
The new cohort comes as venture funding for Black founders has increased as VCs and other organizations prioritized efforts to invest in startups led by diverse teams. In the first half of 2021, funding to Black-led businesses quadrupled over the prior year to reach $1.8 billion, according to Crunchbase.
But that's still just 1.2 percent of VC investments in the U.S. during a record-breaking year, showing even a huge boost is far from the diversification of investing many entrepreneurs and tech leaders are advocating for. In Austin, there are multiple ongoing efforts by venture firms and startup accelerators to bring awareness and investment to more founders of color. That includes funding challenges by Capital Factory, as well as investment and mentorship from DivInc, Notley and several venture firms.
Here's a look at the Austin-based startups Google finds appealing:
Journey Foods: The food science and supply chain software startup helps CPG companies, retailers and suppliers monitor and launch products. The company was founded by Riana Lynn in 2018. It was also recently named as one of 10 companies to land a $100,000 grant from an innovation fund run by The Kroger Co. Zero Hunger | Zero Waste Foundation.
Sandbox Commerce: The app building platform helps brands and retailers create mobile apps without coding. It was founded by Sterling Smith in 2016. The startup was one of Austin Inno's 50 on Fire finalists in 2016, it was part of the Texas Venture Labs program and at the outset of the pandemic it quickly developed a curbside ordering feature, which it offered as a free new feature to customers who used its no-code app development for mobile ordering.
The Mentor Method: Founded by Janice Omadeke in 2015, The Mentor Method helps employers improve retention and engagement with employees by matching employees with mentors. Its customers include Deloitte, the U.S. Department of Education and Glassdoor. In June, the startup raised a $1.4 million seed round led by several high-profile investors, making Omadeke one of fewer than 100 startups led by Black women to raise more than $1 million in venture capital funding. The startup was one of Austin Inno's 50 on Fire winners, won Capital Factory’s Women in Tech Challenge and was a MassChallenge Texas Gold winner.
Tradeblock: This sneaker trading platform helps collectors become part of a broader virtual community and share their shoe collections for trading. It was founded by sneaker enthusiasts and childhood friends Tony Malveaux, Darren Smith and Mbiyimoh Ghogomu. The startup was named to the Forbes Next 1000 list this year. It has a presence in both Austin and Houston.
In statements, several of the founders said the attention, support and funding brought by Google will help them accelerate growth.
“Sneakerheads have been trading kicks with each other since the first Jordan's dropped in 1985,” Tradeblock co-founder Mbiyimoh Ghogomu stated. “But despite the emergence of multiple billion-dollar marketplaces over the past 5 years, nobody had taken on the challenge of trading until now... To be acknowledged by Google for Startups Black Founders Fund is a tremendous honor and a true co-sign of all the hard work my team and I have been doing to get to this point. The funds and support we receive will help us continue to activate our roadmap of technology, attract more talent to our team, and support the sneaker community.”
Last year, three Austin companies were named to Google's Black Founders Fund. They included laundry supply chain management startup Laundris Corporation, children's video game streaming platform Tankee and water distribution insights platform Varuna.
