Austin-based startup accelerator DivInc expanded into Houston earlier this year to provide resources and mentorship to underrepresented startup founders in the region. Now, a new commitment from Bank of America will further the accelerator's reach in the Bayou City market.
Charlotte, North Carolina-based Bank of America Corp. (NYSE: BAC) is committing $250,000 to the DivInc accelerator program and its participating startups, the firms announced July 26. The commitment will provide five $20,000 grants to five select DivInc portfolio companies. Additionally, each of the 10 companies participating in DivInc's spring 2022 accelerator program will receive $10,000 with their participation. A combined total of $25,000 will be committed for the 2021 accelerator participants.
Bank of America's financial commitment will also support DivInc in establishing an equity investment fund focused on pre-seed investments, dubbed DivInc Ventures, the firms said. The fund is slated to launch in the fourth quarter of 2021.
"We know the first step to addressing the lack of access to capital for Black, Latinx and women founders is to invest in their companies at the early stages, which gives them the crucial first step to launching their business and sets them up to attract more investors along their entrepreneurial journey," said Preston James, CEO of DivInc. "Bank of America gets it, and by providing these grants directly to DivInc alumni companies, they’re showing up for our communities and giving these companies the opportunity to grow and succeed and build generational wealth."
Bank of America's grant to DivInc is part of the bank's $1.25 billion commitment over five years to advance economic opportunity and racial equity for underrepresented communities. The effort was launched in June 2020 and expanded in March 2021.
"There’s a certain type of hardship that underrepresented founders face when accessing capital," said Darsha Carter, co-founder of Houston-based Melanoid Exchange, which was a member of DivInc's fall 2020 cohort. "To live through the experiences of being turned down by those who have accepted way less from our counterparts can be nothing short of demeaning. DivInc understands the essence of not just telling underrepresented founders they are creditable and valuable but also making sure we receive the capital to fulfill the value in which they see in us. My company and I are forever appreciative of the opportunities afforded to us through their efforts."
Multiple financial commitments brought the DivInc accelerator program into Houston. A $250,000 grant from JPMorgan Chase & Co. (NYSE: JPM) allowed DivInc to offer competitive salaries to its Houston employees, and a $175,000 commitment from Verizon (NYSE: VZ) enabled the accelerator to offer seed funding to participants of the DivInc Houston program.
In April, Houston-based venture capital firm Mercury Fund partnered with DivInc to further support local founders. Mercury Fund committed to contributing the first 10% of DivInc's $3 million capital raise, Blair Garrou, Mercury Fund co-founder and managing partner, said at the time.
DivInc Houston is located in The Ion, the 280,000-square-foot innovation hub developed in Midtown by Rice University and Rice Management Co. The nonprofit accelerator program is headquartered in Austin.
