Best Buy Commits up to $10M Investment in Brown Venture Group's Inaugural Fund

Rhea-AI Summary

Best Buy has committed up to $10M to Brown Venture Group LLC's inaugural fund aimed at supporting Black, Latino, and Indigenous technology entrepreneurs. This commitment is part of Best Buy's broader strategy to spend at least $1.2 billion with diverse businesses by 2025. The partnership emphasizes collaboration with communities of color to foster economic growth and innovation. Brown Venture Group, established in 2018, aims to raise $50 million to invest in underrepresented entrepreneurs and will leverage local startup talent for investments across various tech industries.

Positive

• Best Buy's commitment of up to $10M enhances its stance on diversity and inclusion.
• The partnership aims to create a stronger community of diverse suppliers.
• Brown Venture Group plans investments in various tech startups, which could yield positive returns.

Negative

• None.

MINNEAPOLIS, Aug. 5, 2021 /PRNewswire/ -- Brown Venture Group LLC, a venture capital firm formed to fund Black, Latino and Indigenous technology entrepreneurs, announced today that Best Buy (NYSE: BBY) has committed up to $10M to its inaugural fund.

Brown Venture Group, a majority Black-led organization, was founded in 2018 with the goal of raising $50 million to invest in entrepreneurs of color who in the past have not had access to venture capital and have experienced economic barriers to contribution.

The commitment by Best Buy builds on its recent announcement that it will spend at least $1.2 billion with BIPOC and diverse businesses by 2025 with a focus on leaders in the tech industry.

"The partnership with Best Buy, represents an important shift in our business community from doing things for communities of Color to investing and executing with communities of Color in longer-term collaborative business relationships," said Brown Venture Group Co-Founder and Managing Partner, Dr. Paul Campbell. "This hometown partnership is especially meaningful and Best Buy is to be commended for its commitment to co-creating solutions that will lead to greater economic flourishing for contributors of color."

In addition to the monetary investment, Best Buy and Brown Venture Group will also work together to create a stronger community of diverse suppliers as well as launch an entrepreneurial partnership program at Best Buy Teen Tech Centers to help develop young entrepreneurs through education, mentoring, networking and funding access.

"We're committed to taking meaningful action to address the challenges faced by BIPOC entrepreneurs," Best Buy CEO Corie Barry said. "Through partnerships like this, we believe we can begin to do this by helping to build a stronger, more vibrant community of diverse innovators in the tech industry, some of whom we hope will become partners of Best Buy in the future."

Disparities = Missed Opportunities = Unprecedented Potential

A 2020 Citigroup report estimates that if racial inequity gaps were closed today, the equivalent add to the U.S. economy over the next five years could be $5 trillion of additional GDP.

"Best Buy's belief that technology changes lives is in sync with Brown Venture Group's premise that focusing on technology entrepreneurs not only will create greater economic flourishing in communities of color, it will also unlock previously unrealized innovative capacity in the marketplace," said Brown Venture Group Co-Founder and Managing Partner, Dr. Chris Brooks.

Brown Venture Group plans to invest in technology startups in various industries including clean energy and retail across the country as well as leverage the abundant startup talent that exists within the region and state of Minnesota.

About Brown Venture Group
Launched in 2018, Brown Venture Group, LLC, is a venture capital firm exclusively for Black, Latino and Indigenous technology startups. Brown Venture Group is writing a new playbook for both those interested in launching a minority-owned technology startup and those interested in investing in new technologies. For more information go to brownventuregroup.com.

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SOURCE Brown Venture Group LLC

FAQ

What is Best Buy's commitment to Brown Venture Group?

Best Buy has committed up to $10M to support Brown Venture Group's inaugural fund for entrepreneurs of color.

How much is Best Buy planning to spend with diverse businesses by 2025?

Best Buy plans to spend at least $1.2 billion with BIPOC and diverse businesses by 2025.

When was Brown Venture Group founded?

Brown Venture Group was founded in 2018, focusing on investing in Black, Latino, and Indigenous technology startups.

What industries will Brown Venture Group focus on for investments?

Brown Venture Group will focus on investing in technology startups in various industries, including clean energy and retail.

What economic impact has a Citigroup report estimated from closing racial inequity gaps?

A Citigroup report estimates that closing racial inequity gaps could add $5 trillion to the U.S. economy over the next five years.