THE EQUITY CAPITAL GAP for Entrepreneurs of Color in Chicago

Census data, and other available research, Capital), to assess the gap between the report provides insights into the Chicago the availability of and demand for equity capital marketplace, including the supply and demand for equity and equity- equity and equity-like capital among like capital, the needs of entrepreneurs of small- and medium-sized businesses color, and best practices from around the. [...] The racial equity capital gap – and the need for capital in disinvested communities and for entrepreneurs of color that our research confirmed – was a real issue prior to the pandemic and is even more critical today as the nation and the City of Chicago turn to trying to repair the damage exacerbated by the crisis. [...] There are too few Chicago equity capital providers of scale focused on entrepreneurs of Black and Latinx color and providing the type of capital required by their businesses entrepreneurs in Chicago have Capital from “friends and family” is limited in Black and Latinx communities due to lower levels of inter-generational wealth than found in White communities, along with cultural stigmas and risk. [...] Census Annual Survey of Entrepreneurs (2016) 7 The Equity Capital Gap for Entrepreneurs of Color in Chicago It’s not the availability of capital in the ecosystem, While other forms of capital are available in which does indeed vary across the equity capital the Chicago ecosystem, “friends and family” spectrum. [...] market of entrepreneurs of color seeking equity capital; and, a set of focus groups to gain a deeper and more nuanced understanding of the equity capital needs and challenges faced by different types of entrepreneurs of color.