Peachtree Minority Venture Fund

Access to capital has always been a problem for underrepresented minority entrepreneurs (URM) entrepreneurs​.

• Persistent low wealth in Black, Latinx, and Native American communities equals less access to personal or friends-and-family funding for startups.
• African American entrepreneurs are rejected for loans at a rate nearly 20% higher than white entrepreneurs.
• Only 1% of VC-backed founders are Black, and less than 2% are Latinx. A lack of diversity at venture capital firms may be contributing to a lack of access to funding for URM entrepreneurs.

Over the last decade, U.S. venture capital investments quadrupled, but this effect has not benefited URM.

• Venture capital is one of the chief growth mechanisms utilized by small businesses. Venture capital allows outside investors to put their stamp of approval on a business allowing it to scale its operations and increases its marketplace reach.
• Unfortunately, many of the same systemic issues that exist in other parts of society prevent URM entrepreneurs from making the kinds of connections in the venture capital ecosystem necessary for investment.
• Women and minority founders receive less than 3% of capital investments. Only 1% of VC-backed founders are Black, and less than 2% are Latinx.

To ensure Peachtree meets its purpose, the fund will engage with entrepreneurs not traditionally served in the venture capital ecosystem.

• We invest in companies that have at least one founder who identifies as Black/African American, LatinX, or Native American (this founder must also have a controlling equity stake in the company).
• Operations must be US based.

Investments will only follow a thorough diligence process

• The fund will follow a holistic research process whereby the student investors will not only learn about the company in front of them, but the larger industry and its risks and upside.

Investments will be industry agnostic

• Part of the enormous, underappreciated value from underrepresented minority founders lies outside of tech and healthcare (for example, Tristan Walker’s Bevel Company or Ryan Wilson’s The Gathering Spot).
• Peachtree has non-racial minority student investors looking at markets they possibly do not understand. That's important, because it will help them identify the needs and desires of the underrepresented communities these products/services serve.

Checks will be between $5,000-$50,000, dependent on the entrepreneurs’ stage

• Angel/Friends & Family Gap: $5K-$15K investments into founders with great ideas and perhaps a product or service, but not in the revenue phase. The idea here is for Peachtree to invest $25K-$50K per year spread out over multiple companies, where the founders cannot depend on funding from friends and family. These investments will be documented through either a simple agreement for future equity (SAFE) or a convertible note.
• Seed Stage: $25K-$50K investments into companies who have gained more traction and have already secured some funding from other sources as part of an institutional round of financing. This is the type of founder a student run fund would normally deal with exclusively. Peachtree will make, at minimum, one such investment per academic year. These investments will be documented through either a SAFE, convertible note, or stock purchase agreement. The goal for these investments is to gain allocation into a financing round led by institutional investors, which would provide students unprecedented access and exposure to the world of venture capital – not to mention potential job opportunities.

• Cap table simulator, find out your equity stake after investments
• Find a Founder
• Find a UI/UX designer
• Find Freelancers
• Pitch deck examples
• Pitch deck basics
• Understanding SAFEs
• How to get users and grow
• Basics of fundraising
• Financial Modeling for Startups