New Majority Capital — Closing the Racial and Gender Wealth Gap via Small Business Ownership

We’re excited to announce our investment in New Majority Capital. You can learn more about their equity crowdfunding campaign here.

The Problem

Baby boomers are the second largest population of small business owners in the United States, making up 41%. In fact, within the next two decades, more than 12 million small business owners will seek retirement. This represents $10 trillion in assets. Now, as these small business owners reach retirement age, they naturally want to sell their businesses.

What The Company Does

New Majority Capital is closing the racial and gender wealth gap by creating more under-represented small business owners who are Black, Indigenous, and People of Color (BIPOC), and/or women, LGBTQ, Immigrants etc.

Business Model

New Majority Capital generates revenue in three main ways: 1) Management and performance fees for equity and debt funds manages to finance the acquisitions, 2) Deal origination fees when they work with third party capital providers, and 3) Back-office support services.

Traction

New Majority Capital has secured grant funding from the RI Commerce department to develop a training program and platform to teach business owners about succession planning while preparing them to sell their businesses. And they’ve built a solid pipeline of entrepreneurs, businesses, mentors, and other funding partners. They’ve also developed partnerships with funders to provide debt funding without personal guarantees, and are working on structures to mitigate risk through first loss policies.

Founding Team Background

Havell Rodrigues is a former Hedge Fund of Fund Portfolio Manager and Risk Manager, with 25+ years’ experience in the industry, including launching tech-driven startups. He is a TiE Charter Member, NextGen Venture Partner + Social Innovation Forum Volunteer. Kris Schumacher has 25+ years in sales, finance, and ops across various industries and maintains an active consultancy helping impact entrepreneurs and investors. His work includes the acquisition and integration of multiple small to mid sized businesses.

What They Need Help With

Through equity crowdfunding, New Majority Capital is excited to build a community that can strengthen and increase the number of BIPOC and women entrepreneurs by leveling the playing field. The funds they raise in this round will go towards building their management team, marketing, due diligence support, portfolio company operations, and developing technology. Learn more about their Wefunder campaign here. 

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