Consumer electronics retailer Best Buy has committed $10m to US-based venture capital firm Brown Venture Group’s inaugural fund, which is targeting a $50m close.
Brown Venture Group was founded in 2018 to support entrepreneurs of colour that have encountered difficulties in accessing capital and experienced economic barriers to contribution.
The firm invests exclusively in startups led by Black, Latino and Indigenous entrepreneurs who are developing emerging technologies in a variety of sectors, including clean energy and retail, across the US.
In addition to the financial backing provided, Best Buy plans to work together with Brown Venture Group with the aim of developing a stronger community of diverse suppliers.
The corporate will launch an entrepreneurial partnership program at Best Buy Teen Tech Centers, to help young entrepreneurs through education, mentoring, networking and funding access.
The commitment by Best Buy follows its recent announcement that it will invest at least $1.2bn in Black, Indigenous and people of colour (BIPOC) and diverse businesses by 2025, with a focus on the tech industry.
Corie Barry, Best Buy chief executive, said: “We are committed to taking meaningful action to address the challenges faced by BIPOC entrepreneurs.
“Through partnerships like this, we believe we can begin to do this by helping to build a stronger, more vibrant community of diverse innovators in the tech industry, some of whom we hope will become partners of Best Buy in the future.”