Block Backs Indigenous Business Sector with AUD$3M Investment in First Australians

Rhea-AI Summary

Block, Inc. (NYSE: SQ) invests AUD$3 million in First Australians Capital (FAC) to support Indigenous businesses in Australia. This investment is part of Block's USD$100 million social impact investment fund, aiming to expand economic access for minority and underserved communities. The fund will help Indigenous entrepreneurs access capital solutions and critical scale-up support services, addressing the barriers they face from mainstream banks.

Positive

• Block's investment in FAC demonstrates a commitment to social impact and financial inclusion for Indigenous-led businesses in Australia, aligning with the company's shared purpose of expanding economic access for everyone.
• First Australians Capital's focus on enabling Indigenous-led businesses to access capital solutions that can help them grow and scale is crucial for the economic contribution of the Indigenous business sector and intergenerational wealth creation for First Australians.

Negative

• None.

MELBOURNE--(BUSINESS WIRE)-- Indigenous businesses across Australia that face barriers to finance and services from mainstream banks are set to benefit from a new fund being set up by First Australians Capital (FAC), a national Indigenous-led fund manager dedicated to helping Indigenous entrepreneurs grow and scale their businesses.

Block, Inc. (NYSE: SQ) (formerly Square, Inc.), a global technology company best known in Australia for its Square and Afterpay businesses, is investing AUD$3 million in capital to the fund with its first social impact investment in Australia. Block Head Jack Dorsey was in Melbourne to meet with the FAC team and finalise the commitment.

“I’m thrilled that we can make our first Australian social impact investment with First Australians Capital, an organisation dedicated to helping Indigenous-led businesses find better solutions to thrive,” said Jack. “We know first-hand that many people are left out of the economy by mainstream services, that’s why our business exists, so it’s great to find a partner equally aligned with financial inclusion.”

Block and its businesses, including Square, Cash App, TIDAL, and TBD, have a shared purpose of expanding economic access for everyone. Today’s investment comes from its USD$100 million social impact investment fund, which was established in 2020 to support minority and underserved communities, allocating USD$10 million for social impact investments in markets outside the U.S.

“The Indigenous business sector can be a powerful economic contributor to community and intergenerational wealth creation for First Australians,” said Brian Wyborn, Managing Partner at FAC. “We are delighted to have Block onboard as an investment partner for our new fund that will help us expand critical scale-up support services to even more Indigenous-led businesses across Australia.”

First Australians Capital was founded in 2016 to enable Indigenous-led businesses to access capital solutions that can help them grow and scale. FAC lends between AUD$100,000 and AUD$2,000,000 to Indigenous-owned and -led businesses, which have historically had to rely on unsuitable financial products from traditional banks. Dr. Clinton Schultz, founder of popular non-alcohol beverage brand Sobah, knows first-hand the success that can be achieved with the right support.

“The capital and services we have been able to access through our partnership with FAC have been a game-changer for our business, with our products now sold at hundreds of retailers across the country and expansion into South East Asia, the US and the UK. Accessing capital remains a huge challenge for Indigenous entrepreneurs who want to grow, so this investment is a huge vote of confidence for our business sector, and our broader community, at a time when we need it most.”

About First Australians Capital

First Australians Capital (FAC) is a national Indigenous-led fund manager and business advisory organisation that connects investment markets with the Indigenous economy, offering accessible, patient debt finance to support Indigenous businesses and address racial inequity in Australia’s finance sector. FAC focuses on diverse, impact-driven investments into Indigenous-led businesses that create long-term social and environmental impact for Indigenous businesses and communities. Since 2016, FAC has worked with over 800 Indigenous businesses, and leveraged more than $70mil in capital to scale sustainable Indigenous businesses.

About Block

Block, Inc. (NYSE: SQ) (formerly, Square, Inc.) is a global technology company with a focus on financial services. Made up of Square, Cash App, TIDAL, and TBD, we build tools to help more people access the economy. Square makes commerce and financial services easy and accessible for sellers with its integrated ecosystem of technology solutions. With Cash App, anyone can easily send, spend, or invest their money in stocks or bitcoin. Afterpay brings Square and Cash App together, connecting consumers and businesses. Artists use TIDAL to help them succeed as entrepreneurs and connect more deeply with fans. TBD is building an open source platform and developer infrastructure that enables everyone to access and participate in the global economy.

View source version on businesswire.com: https://www.businesswire.com/news/home/20231112962028/en/

press@block.xyz

info@firstaustralianscapital.org

Source: Block, Inc.

FAQ

What is the significance of Block, Inc.'s investment in First Australians Capital (FAC)?

Block, Inc. (NYSE: SQ) is investing AUD$3 million in FAC to support Indigenous businesses in Australia, demonstrating a commitment to social impact and financial inclusion for Indigenous-led businesses.

What is the purpose of First Australians Capital (FAC)?

FAC is dedicated to helping Indigenous entrepreneurs access capital solutions and critical scale-up support services, addressing the barriers they face from mainstream banks.

How does First Australians Capital (FAC) support Indigenous businesses?

FAC lends between AUD$100,000 and AUD$2,000,000 to Indigenous-owned and -led businesses, enabling them to grow and scale with suitable financial products, addressing the challenges they face in accessing capital.

What is the focus of Block, Inc.'s social impact investment fund?

Block's USD$100 million social impact investment fund aims to expand economic access for minority and underserved communities, with a specific allocation of USD$10 million for social impact investments in markets outside the U.S.