Through its social impact arm The Milky Way Tech Hub, Milwaukee-based software company Jet Constellations is launching a $50 million fund for investing in tech companies founded by Black people and other underrepresented demographics.
The fund is being launched in partnership with IP Zone Co., a New York-based information technology and services company formed out of American Express.
A 'top five' automotive company has agreed to invest in the fund and tech companies in the 5G, artificial intelligence and internet of things sectors have granted exclusive rights to the fund, according to information from Jet Constellations founder and CEO Nadiyah Johnson, who is also an engineer at GE Healthcare.
"The fund will target scalable tech companies that have substantial intellectual property and a willingness to relocate or invest and partner with Milwaukee and its citizens," a press release says.
Johnson says the fund requires strategic collaboration at the city and state level.
"The Milky Way Tech Hub intends to transform Milwaukee leveraging public and private capital in a way that will benefit an inclusive group of entrepreneurs," the release reads.
In a recent virtual panel discussion hosted by the Business Journal, Johnson, a 2020 40 Under 40 honoree, talked about the challenges of Black founders, especially in the technology sector, when it comes to raising capital.
"The Milky Way Tech Hub believes that on a level playing field where there is equal access to capital and resources, technology and innovation can serve as vehicles to improve the socio-economic conditions in our urban areas. While technology now plays a role in almost every aspect of daily life and business, according to a study led by Silicon Valley Bank only 1% of Black businesses are backed by venture capital, further widening the digital divide and the vast economic disparities that presently exist," Johnson wrote in the release.
Johnson launched The Milky Way Tech Hub to create a diverse and inclusion tech ecosystem in Milwaukee. Through the platform, she has collaborated with the American Family Institute for Corporate and Social Impact, which operates under parent company American Family Insurance, on programming and events to drive that message.
