Brown Venture Group, the Twin Cities venture capital firm that exclusively funds Black, Latino and Native American-owned technology startups, announced Thursday it has received significant equity funding from Bank of America.
The investment from Bank of America will contribute to the Minneapolis-based firm's $50 million inaugural fund, one of the largest funds in the U.S. with a diversity mandate.
"Bank of America was one of the very first Fortune 500 companies to recognize the tremendous upside potential and the multi-generational impact this type of investment will have on communities of color," said Paul Campbell, co-founder and managing partner of Brown Venture Group. "Their financial commitment to our inaugural fund puts us significantly closer to our goal of raising $50 million and demonstrates a shared vision to accelerate racial equality by creating an infusion of capital into underserved BIPOC tech startups in Minnesota and across the country."
The details of Bank of America's investment aren't being made public.
Best Buy Co. Inc. previously announced it would invest up to $10 million into the fund.
Brown Venture Group said it has commitments for more than 75% of the $50 million fund goal, including $6.8 million formally raised since Aug. 8, according to an SEC filling made public Thursday.
The fund is expected to close in the first quarter of next year, Campbell said.
Brown Venture Group is now finalizing investments for nearly a dozen technology startups by the end of the year.
