#changingthecolorsofinvestment is baMa’s newest campaign. baMa is a growing business angel network association that aims to bridge the investment gap in minority-led startups or startups targeting minority driven markets.
Who is baMa? The Business Angel Minority Association is a national initiative to create a more inclusive startup ecosystem through early-stage investment in minority-led and minority-focused startups. To achieve this, baMa’s vision is to activate more investors in diverse startups, get above-average returns on investments, and support innovation from minority founders.
Why baMa? We believe that if we support the innovation ecosystem through our investments, we will influence the companies that will lead our future.
The statistics show the problem baMa wants to help solve. A report from Ratemyinvestor & Diversity VC shows that less than 25% of venture-backed founders are from a racial minority group and a majority of founding the teams comprise of all males. Portfolios, in general, lack diversity. Deloitte also shows that only 14% are women investors and only 20% are from a racial minority. Another report form Mckinsey & Company tell us that when we invest in gender diverse startups, the investors get 25% more returns. Likewise, when there are ethnically diverse startups, investors get 36% more wins.
“Believing in diversity it is not only the right thing to do, but as investors there are better returns”, says CEO of baMa, Maria Maso.
This lack of diversity in investors leads to a lack of investing in minority founded startups. Investors then lose the above average returns that diversity shows to generate.
How are we going to change this? With baMa 2021 strategy #changingthecolorsofinvestment through a collaborative approach. baMa counts on partners, sponsors, syndication groups, members, and the Diversity investor Academy.
As partners, we have nonprofits like Sogal, Generator, Women in artificial intelligence that are crucial because they deploy money to support quality startups. baMa and them share the similar vision and establish mutual partnerships. On the other hand, our sponsors, which are corporates like V&E, The Cannon and Boral Agency, make it possible for baMa to implement different educational programs in order to activate capital in diverse startups and business angels.
If you become a baMa sponsor, you will get an incredible opportunity to showcase your company to minority communities across the U.S., make an impact supporting diversity, inclusion and equality, receive recognition and logo placement on baMa’s website, access to VIP events, and branding through marketing emails send to the media and baMa’s communities such as investors, business angels, VCs, minority-led startups, etc.
Education is another pillar. baMa believes in making education approachable to anybody that wants to be involved in early-stage investment. We believe in the power of knowledge, that is why we have the Diversity Investor Academy. At DiA we present new content in a user-friendly approach, no application required and no need to be an accredited investor.
The content is divided into specific knowledge blocs with topics such as Market trends, legal considerations, women in early-stage investment. This 25th of March, we will hold one of our fist panels for 2021: “Women in the innovation ecosystem.”
Moreover, we will be launching a monthly subscription 101 business angel education prerecorded lessons on the 29th. In the next semester we will launch our 101+advanced business angel education where we are going to share real cases of business successes, and failures.
The third pillar is our syndication groups. They comprise groups of investors, VCs, and other business angels networks that believe in diversity in order to create more talent and expand innovation.
Lastly, but not least, our members. They can be investors that are supporting businesses with their own capital, VCs that are looking for diverse startups, and institutional members that don’t invest, but support us to activate more investors. Regarding membership, we have two different initiatives in mind in our members’ portal. They are: creating a members’ forum to discuss different investment opportunities and, as soon as COVID-19 allows us, we will host our pitches in person and online.
In 2021, we will continue hosting pitches that will connect contact founders and high-quality startups and our angel network. Nevertheless, one of the companies in our pitch event is going to be founded via an SPV available to our activating capital members.
One of the biggest goals for this year is to launch a business angel fund by the end of 2021. baMa’s management team in order to do so has set two milestones. The first one, is to reach 100 investors members at baMa, and to create 4 SPVs to deploy capital as a group. Opening a fund will allow baMa access to more investors by offering a lower investment minimum for a diversify portfolio, resulting in a better risk-adjusted path for new angel investors to have a direct positive impact.
During baMa 2021 Launch event, we gave away three different awards for baMa’s Diversity Champions. Diane Yoo won member of the year, Vinson & Elkins won sponsor of the year, and Portfolia won investment partner.
At baMa, we welcome everyone that wants to #changethecolorsofinvestment, and any kind of support is appreciated. You can support baMa by being a partner, sponsor, member, etc. let us know which are your skills and let’s work together.
Catherine Carey, Communications Manager at baMa