Latino and woman-led VC fund Red Bike Capital closes equity investment from Bank of America
This is the latest chapter in Bank of America's commitment to advancing racial equality & economic opportunity, empowering the Latinx VC fund to empower others
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Red Bike Capital recently announced that it has received an equity investment from Bank of America.
The new funding will go a long way toward helping Red Bike Capital reach and sustain its goal of investing in early-stage companies that power the economy and significantly improve people’s lives.
Red Bike Capital is a Latinx and woman-led early-stage venture capital fund that invests in US-based founders that leverage technology to improve financial inclusion, power commerce, drive sustainability and provide better health outcomes.
It is led by two Latino general partners: Rachel ten Brink, a Y-Combinator founder who has raised $29 million in venture capital and spent over 15 years building billion-dollar brands at L’Oréal, Estee Lauder and P&G; and Herman Goihman, an experienced investor and Fintech expert who started his career as an investment banker and held a number of senior investment roles at Bank of America and Taconic Capital.
Red Bike Capital receives 75% of its deal flow directly from founders referring founders, having made four investments to date.
“We’re delighted to bring on an investor that is so aligned with our mission to drive opportunity and returns,” said ten Brink in a statement.
“There is a huge wave of economic power coming behind us — one in four Gen Z’s is Latino and we represent 70% of the growth in the US labor force. We are contributing significantly to the future of this country,” she continued.
Latinos are the most entrepreneurial group in the United States, starting businesses at a faster rate than other backgrounds. Latinos account for 20% of the U.S. population, but receive only 2% of venture capital funding.
Subsequently, only 2% of venture capital partners are Latino, and a minuscule 0.1% are Latinas.
“As a founder, I was one of just 90 Latinas to ever raise over $1M,” ten Brink said. “Now, as an investor, I want to continue to pave the way through financial support and deep operational expertise.”
She continued, “We need to open doors and create pathways for the next generation of breakout founders.”
Financial institutions like Bank of America play a key role in this endeavor of affirming beliefs that bringing diversity to both sides of the table can have a multiplier effect that drives inclusion and equity while delivering outsized returns.
“Bank of America wants to be a true catalyst for positive change providing opportunity and access to capital to extraordinary founders who are creating significant value, yet have historically gone overlooked,” said Jose Tavarez, President of Bank of America New York City, in a press release.
“Our goal is to empower talented fund managers like Red Bike Capital as they drive equitable innovation and empower founders with hands-on operating support,” he added.
Bank of America’s investment is part of the company’s commitment to advancing racial equality and economic opportunity, having allocated more than $400 million to over 100 diversity-focused investment funds across the United States.