The Black Economic Alliance Foundation has announced the launch of the Black Economic Alliance Entrepreneurs Fund (BEA Entrepreneurs Fund) with a five-year, $20 million commitment from Wells Fargo.

With the aim of accelerating the growth of Black entrepreneurs and business owners, the $50 million evergreen fund will provide seed, start-up, and early-stage capital to businesses founded and led by Black entrepreneurs. To that end, the fund will receive an equity stake in Black-owned startups in exchange for a seed capital investment, and will recycle 100 percent of its returns in support of ongoing operations and additional investments.

The launch of the fund follows the creation in February of the Center for Black Entrepreneurship (CBE), a joint venture among the Black Economic Alliance Foundation, Spelman College, and Morehouse College.

"Business ownership has been one of the best paths to multi-generational wealth creation for some Americans, but too few Black entrepreneurs have secured the financial resources necessary to launch and grow successful businesses," said BEA executive director David Clunie. "The Black Economic Alliance is proud to marshal resources to support more Black-owned businesses and founders, which will leverage hiring more Black workers and additional investment in Black businesses and communities. We are thankful to Wells Fargo for providing $20 million in anchor funding to catalyze the launch of this important, long-term investment in Black entrepreneurs."

"The BEA Entrepreneurs Fund will invest in a new generation of Black business leaders and entrepreneurs," said Tony Coles, Black Economic Alliance co-chair and executive chair and CEO of Cerevel Therapeutics. "The evergreen fund will help close the opportunity gap by enabling access to capital that promising business ventures need to grow."

(Photo credit: Black Economic Alliance)