Birmingham has recently seen an influx of grant funding and seed capital flowing to minority-owned businesses, and local entreprenuer leaders hope it signals a shift in funding priorities for investors and organizations.
In addition to Mixtroz getting its second $1 million seed round recently, several businesses owned by persons of color have recently received entrepreneurial grants.
This spring Babypalooza came in second in the New Voices + Target Accelerators Pitch Competition.
Black Girl Ventures, a Washington, D.C.-based venture capital group, which set up a Birmingham chapter around a year ago, had a pitch competition in February. The Bronze Valley Accelerator is on its third cohort in order to boost and assist startups of color.
Local entrepreneur Dee Edwards gave back to the community herself by offering roughly 20 small businesses and entrepreneurs funding.
Joy King of Enjoy Entertainment received a $10,000 grant through the NAACP and Beyonce.
Initially, King said she never knew how to get a grant and never considered it for her own company. But now, she and many other Black and female entrepreneurs are pursing the opportunities.
Startup advocates are hopeful those grants will eventually be followed by an increase in capital opportunities.
Ashlee Ammons, cofounder of Mixtroz, said there has been an awakening in the funding realm.
“These organizations that support startups are starting to really take a good look at, ‘OK, are we actually doing that, or are we just doing lip service to say that we do that?’” Ammons said. “I think a lot of the conversations that are being had and programs put in place today are much more tactical.”
Patrick Murphy, the Goodrich Endowed Chair of Innovation and Entrepreneurship at UAB’s Collat School of Business, said the activity is a good step toward supporting minority startups and represents something wider in the local ecosystem.
“What I’m seeing on the ground is a culture shift. We have talked about inclusion and diversity for a long time, but it’s been talk for a long time. These (programs, grants and funding) are not talk. They’re actions. Talk gives way to action that puts us in the middle of a culture shift,” he said.
“I think the progressiveness of the culture of our ecosystem is developing in a positive way. It opens the door for different types of entrepreneurs, including minority entrepreneurs of any category to take part and to have a seat at the table. We may not be there yet, we may not ever get there, but I know that we are moving in the right direction.”
Murphy said the increase in funding to minority-owned businesses can be attributed to technology, social media boosting and greater access to funds in general.
The fact that funding for Black, female entrepreneurs is starting to pick up, especially in Birmingham is a positive shift in the ecosystem for King. Overall, the hope is that this is not just a one-shot deal and that streams of funding can continue into the future.
“What I really hope that this is not a one-time deal. I hope that this is now opening up eyes to see that we were not represented ... and that going forward, they will continue to welcome us to the table,” King said. “Not just welcome us, but want to also include us in the pool of funding and in the pools of opportunities to say, 'let’s make sure that we are serving the underserved community.'”
