St. Louis nonprofit Wepower has made two new investments from its fund that provides capital to local Black and Latino entrepreneurs.
Wepower said Thursday new investments from its Wepower Capital arm include $95,000 for J3 Enterprises, which owns and operates a local RooterMan franchise, and $100,000 to Maplewood e-commerce business Cheryl’s Herbs.
Wepower said it has now provided nearly $250,000 through three investments from its Wepower Capital fund, which launched in 2021. Wepower last year made its first investment from the fund, providing capital to St. Louis-based e-commerce startup Bold Xchange. The nonprofit, which targets creating equitable education and economic systems in St. Louis, in August 2021 unveiled the $1.5 million fund. The fund includes national investors, such as Oakland-based Common Future, and local backers, including BJC HealthCare.
“Transformative change in St. Louis requires a dynamic set of solutions that involve both changing inequitable policies at the regional level and creating economic opportunities at the neighborhood level,” said Wepower founder and CEO Charli Cooksey. “By identifying promising Black and Latinx entrepreneurs who are committed to improving their communities, and financing their high potential companies, we are able to accelerate economic growth within historically under-resourced neighborhoods.”
J3 Enterprises, led by Reginald Jennings, and Cheryl’s Herbs, owned by Tiffany Jones, both in 2021 participated in Wepower’s accelerator program for underrepresented founders. Wepower said the two companies were chosen to receive investment from its fund because they are “promising local businesses that create quality jobs in the region without a high barrier to entry, and they are run by talented entrepreneurs who expressed a commitment to create a positive community impact.”
Jennings’ J3 Enterprises owns and operates a franchise of RooterMan, which provides plumbing, sewer and drain cleaning services. A news release said he seeks to hire new employees at a $60,000 starting salary.
”The support that I’ve received from WePower, through the accelerator program and the capital investment, has been life changing,” Jennings said in a news release. “Now I am better equipped to provide mentorship to my employees and to other Black and Latinx entrepreneurs who will be able to learn from my experience.”
Jones acquired Cheryl’s Herbs in 2019, the news release said. The Maplewood business sells herbal and supplement products and manufactures products for other businesses.
“Because of this investment, I’m able to hire more staff, continue to provide quality products and services to my customers, and grow my business in the St. Louis area," Jones said. "I’m grateful to Wepower for seeing my commitment to helping my community.”
Through its investment fund, Wepower uses a revenue-based funding model that involves companies paying back the funding monthly based on a fixed percentage of their revenue.
“Since our ultimate goal is to build community wealth, it is important to use an investment model that is both accessible and won’t remove ownership from those that are building the business. Revenue sharing achieves that by letting us take more risks than banks, with fewer barriers and without requiring entrepreneurs to give up a significant share of ownership," said Yoni Blumberg, vice president of community wealth building at Wepower.
