Earl Childress Investments Launch New Program to Introduce Minorities to Venture Capital
The fastest way to build wealth in America is to start a scalable business or to invest in one.
Earl Childress is the founder of Earl Childress Investments, a black-owned smart venture capital company. Why is that important? According the Harvard Business Review, Black founders received less than 1% of venture capital. This is important because when it comes to investing in companies, one of the major components of the decision process used by venture capital is the ability to connect and relate to the company’s founder and their management team.
Naturally, people tend to feel more comfortable with others who look like them. If the decision makers are comfortable with you, they are more likely to trust you, which increases your chances of obtaining the capital to scale your company.
According to Investopedia.com, the #1 reason small businesses fail is a lack of funding or working capital. Ninety percent of all startups fail within the first ten years. Blacks have a higher failure rate. Historically, blacks have been denied traditional financing overall at a higher rate than their counterparts. Whereas venture capital is alternative financing, most blacks are not engaged due to their lack of exposure. Therefore, inadequate funding automatically gives black-owned businesses a disadvantage in the marketplace.
Also, there is a huge wealth gap between blacks and whites in America. “The fastest way to build wealth in America is to start a scalable business or to invest in one,” Childress passionately preaches to his audience across several social media platforms.
What make Earl Childress Investments different is their free membership program for founders. The membership program is designed so founders can network with other founders while building relationships with investors. This gives founders an opportunity to learn how to successfully scale their startups correctly. Investors can learn how to evaluate and invest in early-stage startups. This is unprecedented because venture capital normally does not provide education or memberships to non-clients.
The main goal of the program is to reduce the failure rate for startups. As an economics rights leader, Childress plans to reduce the wealth gap in America by introducing more blacks and other minorities groups to venture capital.