Financial Services Provider Synchrony Commits $15M to Black, Latinx and Female VC Funds
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Financial Services Provider Synchrony Commits $15M to Black, Latinx and Female VC Funds

Just a few days after they’ve announced their education equity program, Synchrony — a premier financial services provider — has announced that they’ll be committing money to venture capital (VC) funds that further support social justice causes.

In a press release announcement, it was revealed that Chingona VenturesSeae Ventures, and  Zeal Capital Partners were the first recipients of the funds — totaling $15 million — that the company earmarked for Black, Latinx, and women-led VC funds.

These VC funds are a part of a sector of the market that is completely underrepresented. According to Crunchbase, $15 billion has been raised by Black and Latinx founders in the United States since 2015. However, while that may seem like a lot, that number only represents about 3 percent (2.4 percent, to be exact) of the total amount of money raised by VC funds.

Synchrony’s goal is, in a nutshell, to provide equity to these underrepresented sectors.

The press release also confirms that the company wouldn’t be averse to releasing more funds in the future.

“For too long, Black, Latinx, and female founders have been underrepresented in venture capital funding,” said Trish Mosconi, EVP, Chief Strategy Officer, and Corporate Development at Synchrony, in the press release announcement. “Together we must take collective action to help close the venture funding gap and provide equal access to capital for diverse entrepreneurs and underserved communities.”

Previously, AfroTech reported that Synchrony launched a series of initiatives to advance education equity in the United States. The value of these initiatives totals $50 million.

In addition to providing financial literacy to prospective recipients of the education initiative, Synchrony will also provide virtual workshops for students on financial topics such as credit, savings, debt, and investments.

These two hefty financial commitments indicate a trend for the financial services provider under the tutelage of Jeff Lamour. Lamour will also continue to develop this strategy and promote equity in the investment community.