HubSpot has a history of helping to scale companies. Now, it’s continuing to run the race with its latest investment into Black-owned businesses, families, and communities.
According to a press release, the platform will invest $7.5 million to support Minority Depository Institutions (MDIs) and help close the racial wealth, health, and opportunity gap.
The funds are what’s left of HubSpot’s $20 million social impact investing commitment and will continue its efforts to dismantle systemic racism by imposing change through four key pillars — introspection, investment, inclusion, and impact.
“Through our conversations with MDIs, we’ve learned about their missions and the unique challenges they face in lending and gaining access to a recurring revenue stream,” said Kate Bueker, CFO of HubSpot, in an official statement. “We have a responsibility to our Black employees, customers, partners, and investors to help create more economic opportunities and we’re proud to partner with J.P. Morgan to help MDIs support the Black communities they serve and build a sustainable future.”
There’s a huge disparity in America when it comes to Black-led banking institutions. According to studies, those banks have steadily declined from 48 in the year 2001, to only 20 operating Black-led banks in 2020.
Due to this drop, Black communities don’t have access to banking and opportunity, thus further creating a gap when it comes to racial wealth and funding. HubSpot’s investment aims to change this through its support of two MDIs, M&F Bank and The Harbor Bank of Maryland.
Through the J.P. Morgan Asset Management’s Empower share class, the institutions will have access to an institutional money market share class that was created earlier this year specifically for exclusive distribution by Minority and Diverse-Led Financial Institutions.
“The Harbor Bank of Maryland has a long history of providing capital and financial services to the communities that it serves,” John Lewis, President and Chief Operating Officer of The Harbor Bank of Maryland, said in the statement. “We continue pushing forward on our mission to provide equitable access to financial resources. We are encouraged by our partners JPM Asset Management and HubSpot in furthering our efforts.”
A Step Toward Lasting Change
Earlier this year, HubSpot reiterated its commitment to fighting racial injustice — something that they note is a long-term commitment.
Aside from making changes within the company, HubSpot’s Black Lives Matter action plan has deployed $55 million in capital in support of Black-led anchor institutions, businesses, and financial institutions.