In March, Northwestern Mutual launched the Black Founder Accelerator powered by gener8tor after announcing the company would dedicate $20 million within Northwestern Mutual Future Ventures to investing and to buy stocks in startup companies founded by Black entrepreneurs.
“This was set aside in the spirit of diversity and inclusion efforts,” said Abim Kolawole, vice president of CX Integration and Promoting Journey at Northwestern Mutual.
He also said these initiatives fit the company’s ongoing commitment to fostering diversity and inclusion and driving equity through innovation. Kolawole said Black founders receive less than one percent of venture capital funding annually. Both Northwestern Mutual and gener8tor have partnered to support Black entrepreneurs to help close this funding gap.
The accelerator program and venture capital fund focus on startups whose technologies have the potential to transform financial security. The investment criteria for the Black founder funding allocation encompasses Northwestern Mutual Future Ventures’ key strategic areas of focus:
- Building for consumers’ changing financial preferences
- Reimagining the client experience
- The digital health revolution
- Transformational analytics and technologies
“We invest in early-stage companies all around the country… Venture capital is a network-driven activity and most often your network looks like you,” Northwestern Mutual Future Ventures Managing Director Craig Schedler said.
He and Kolawole both agree innovative thinking will help drive solutions to close the racial equity gap in who receives venture capital and which businesses succeed. Schedler said Northwestern Mutual decided to be more intentional about outreach and networking with Black entrepreneurs.
“The feedback we often got was ‘It’s great to meet you. I don’t know a lot of people like you. How can I meet more people like you?” he said.
Since the announcement of the $20 million for Black founders back in November, Northwestern Mutual Future Ventures created four investments. Northwestern Mutual Black Founder Accelerator invests in up to 10 companies per year (two cohorts of five) led by Black founders.
“I would like to say we are actually just getting started,” Kolawole said.
The first cohort convened in March and Kolawole said the program is going well so far. He explained while there has been a learning curve, the team has already begun thinking about aspects to improve upon in the fall.
“It’s more than a program, it’s an experience,” Kolawole said.
In addition to a $100,000 investment, each participating startup receives a “concierge experience” during the 12-week accelerator program. Both gener8tor and Northwestern Mutual support the growth of these startups through a network of experienced mentors, technologists, industry experts, angel investors and venture capitalists, individualized coaching and mentorship from the gener8tor team during bi-weekly, one-on-one meetings.
“It’s also wider access to the generator network and wider ecosystem,” Schedler said.
The application for the fall cohort of the accelerator program closes on Aug. 9, however, Kolawole said community members should stay tuned for news from Northwestern Mutual about 2022 and 2023.
“There’s some things we have in the works right now,” he said.
To apply, visit https://gener8torblackfounderaccelerator.com/ .
