Author Abriana Walton Published: 2/3/2021 AFROTECH
Photo Credit: Lori Hoffman / Bloomberg
Citi announced a $200 million Impact Fund dedicated to making equity investments in U.S.-based companies that strive to achieve measurable social and financial outcomes. So far, Citi has donated to 11 women and minority-owned businesses, and each individual investment can reportedly reach up to $10 million.
The most recent round includes three Black-led startups dedicated to making a positive impact on society, as reported by The Grio.
One of the focus areas of the fund were companies with solutions in financial inclusion. Clerkie, one of the three recipients, is an AI financial planner that helps users escape debt and build credit. It was founded by Guy Assad with the purpose of providing financial literacy and democracy for middle class Americans. The second recipient, Perch is also an app that focuses on solutions in financial inclusion. Founded in 2019 by Michael Broughton, Perch was created as a way for users to build credit through their already recurring expenses such as rent and subscription services.
“Our intention is to not only help these businesses scale and thrive but to also shine a light on the investment opportunities among this pool of often overlooked, high potential entrepreneurs,” Citi’s head of global public affairs, Ed Skyler, said in a statement.