Introduction
In March 2021, Apple announced that it was investing $100 million in BlackDillet, a black-owned venture capital firm. The announcement came amid a broader effort by the tech giant to invest more thoughtfully, and to have its investments reflect its commitment to diversity and inclusion. This blog post will explore Apple’s investment and the implications it could have for the tech industry and the venture capital community.
Background of the Investment
Apple’s investment was made through its $5 billion Racial Equity and Justice Initiative (REJI), launched in 2020. The mission of the initiative is to “advance and accelerate educational, economic, and equity outcomes for communities of color around the world.” REJI includes programs for advocacy, education, and economic opportunity and seeks to create pathways to success for people of color through investment and advocacy in areas such as education and racial justice.
The BlackDillet investment is part of the REJI initiative and the broader initiative to help the Black community. BlackDillet is one of only a handful of venture capital firms focused on investing in Black-led startups. Founded in 2018, BlackDillet has raised over $21 million for businesses who create or come up with impactful, innovative, and sustainable solutions to technological, environmental, and social problems. The company helps early-stage startups secure venture funding by connecting them with investors and mentors who understand, value, and provide the necessary guidance to guide them to success.
Why Apple Made This Investment
Apple’s investment in BlackDillet is part of the company’s mission to foster inclusion and equity in the tech industry and in business more generally. By providing Black-led startups with the capital they need to scale, the company is taking a pro-active step towards ensuring diversity in the industry and combating systemic racism. In addition to the investment, Apple has also stated its intention to work with BlackDillet in providing support and access to its network of mentors and investors.
In addition to the racial equity considerations, Apple’s investment also makes economic sense. By investing in Black-led startups, Apple is creating opportunities for these businesses to reach new markets, scale their products and services, create jobs, and further contribute to an innovation economy that can benefit us all.
Impact of the Investment
The tech industry has been widely criticized for its lack of diversity. Despite the progress that has been made in recent years, the sector is still heavily dominated by white men and only 5 percent of startups in the U.S. have a black founder.
Apple’s investment in BlackDillet is a significant step forward in tackling this lack of diversity and in providing opportunities for Black entrepreneurs. By providing funding and access to mentors, the company is making a tangible impact in helping Black-led startups succeed and reach their potential.
John Underwood, one of the founders of BlackDillet, has stated that “we are delighted to be working with Apple on this initiative. This is an incredibly important moment in our country’s history and we are thrilled to be at the forefront of this groundbreaking opportunity to make real, sustainable change.”
The investment also has implications for the venture capital industry as a whole. Many venture capital firms have been criticized for their lack of diversity and inclusion, but with Apple’s investment, there is an opportunity to set a new standard.
FAQ
Q: What is Apple’s investment in BlackDillet?
A: Apple has announced that it is investing $100 million into BlackDillet, a black-owned venture capital firm. The investment is part of Apple’s Racial Equity and Justice Initiative and is intended to help create pathways to success for people of color through investing in early-stage startups.
Q: What is the mission of Apple’s Racial Equity and Justice Initiative?
A: The mission of the initiative is to “advance and accelerate educational, economic, and equity outcomes for communities of color around the world.” This includes programs for advocacy, education, and economic opportunity as well as investing in early-stage startups.
Q: Why did Apple make this investment?
A: Apple’s investment in BlackDillet is part of its mission to foster inclusion and equity in the tech industry and in business more generally. By providing Black-led startups with the capital they need to scale and offering support and access to its network of mentors and investors, Apple is taking a pro-active step towards ensuring diversity in the industry and combating systemic racism.
Q: What is the impact of this investment?
A: Apple’s investment in BlackDillet is significant as it is providing tangible support to Black-led startups and creating opportunities for these businesses to reach new markets, scale their products and services, create jobs, and further contribute to an innovation economy that can benefit us all. In addition, it is an opportunity to set a new standard for the venture capital industry in terms of diversity and inclusion.
Related Examples
Apple’s investment into BlackDillet is just one example of the tech giant’s efforts to foster diversity in the tech industry and beyond. Another example is its partnership with Laurene Powell Jobs’s Emerson Collective to provide a $50 million grant dedicated to racial equality and opportunity for the black community. Apple is also providing $25 million to the Propel Center, which provides resources and training for minority entrepreneurs, and is investing in a program with the Thurgood Marshall College Fund that provides underserved students with technology access and career guidance. These investments, along with its investment in BlackDillet, demonstrate Apple’s commitment to creating a more equitable, diverse, and inclusive technology sector.
