Amazon has allocated $150 million to a new initiative it calls Catalytic Capital. The capital will be invested through venture capital (VC) funds, accelerators, incubators, and venture studios to help entrepreneurs who come from, what Amazon calls, under-represented communities. This includes founders of companies that are Black, Latino, Indigenous, women, or LGBTQIA+.
Channelling the money through ten funds, the company believes that it can help inject capital into more than 200 companies over the next year. This should definitely help businesses that might be struggling now with the tougher economic conditions.
Aside from the finance, Amazon will also offer mentorship and resources to help the businesses and their technical strategies. If Amazon believes any of the companies would benefit from partnerships, it will present these opportunities to the business owners to help their company grow.
Commenting on the Catalytic Capital, Amazon’s senior vice president of worldwide corporate development, Peter Krawiec, said:
“We’ve seen incredibly innovative ideas from underrepresented entrepreneurs—from companies offering inclusive health services for women, to startups helping companies mitigate climate impact for underserved communities—and we’re convinced that an inclusive investment strategy leads to better returns and innovation. We want to ensure that these companies and their founders have the same access to capital as anyone else. We hope that our investment will be catalytic—sparking a force-multiplying effect by inspiring others to invest in these companies, fostering inclusion and innovation, positively impacting communities, and creating generational wealth and financial return.”
As part of the initiative, Amazon has already begun investing with several funds including Collide Capital, Elevate Future Fund, Share Ventures, and Techstars Rising Stars Fund. Amazon hopes that the investments will be turned into additional jobs and higher economic growth over time.
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