A health-tech startup fund led by minorities aims to level the playing field for black-led startups.

• Access to funding can be a challenge for Black-led startups due to the lack of diversity in venture capital.
• According to Fairview Capital Partners, the number of women and minority-owned venture and private equity funds increased by 25% the year following the George Floyd protests.
• In 2021, the Jumpstart Nova fund was launched with the goal of investing solely in Black health-tech companies and has since raised $55 million in funding from investors such as Eli Lilly, HCA Healthcare, and Bank of America.

Dr. Derrell Porter recognized the potential of a business that offers a platform for researchers to develop and market gene and cell therapies.

Porter, the founder of Cellevolve, explained that academic medical centers and scientific innovators are not pharmaceutical companies and typically seek partnerships to help complete the development of their programs.

He started discussing Cellevolve with investors in March 2020, just before the pandemic lockdown.

Obtaining venture capitalists' investment involved more than just purchasing an idea when things resumed.

"Porter, who holds a medical degree from University of Pennsylvania Medical School and an MBA from The Wharton School, stated that it's a deeply personal decision for entrepreneurs when they're making a bet on them. He added that being different or in a situation where the investor may not see themselves in them or find a way to connect makes it harder to find capital."

In 2020, nearly 80% of VC investment partners were white, 15% Asian, and just 3% Black, according to a survey conducted by Deloitte in collaboration with the National Venture Capital Association and Venture Forward.

Marcus Whitney, an African American venture partner and co-founder of Jumpstart Health in Nashville, experienced a cultural shift from investors he'd spoken to for years after the George Floyd protests in 2020 and the summer's emphasis on racial equity.

Whitney stated that she discovered a readiness to act on something she had never previously experienced in her entire life.

He took advantage of that readiness to secure funding for investing in Black-owned businesses.

He questioned whether there were enough deals to be a part of the project, saying, 'This sounds great, but I want to be a part of it. Is it possible?'

Last year, he wasn't the only one to capitalize on the greater willingness to invest in under-represented founders and launched the Jumpstart Nova fund to invest exclusively in Black-led health firms.

In 2021, the number of women- and minority-owned firms in the venture capital and private equity industry increased by 25%, according to Fairview Capital Partners. Despite this growth, the actual number of such firms remains small, with only 627 women- and minority-led firms, including 84 that are Black-owned. Additionally, the median capital raise for these firms was $100 million, which is significantly lower than the industrywide median of $170 million.

Cellevolve was one of Whitney's initial investments, and she joined the company's board.

If Marcus hadn't taken the bet on Cellevolve and me personally, we might never have started a company, said Porter.

The Jumpstart Nova Fund has secured $55 million in investments from backers such as and , with plans to invest in 20 start-ups this year, despite Whitney having already identified over 150 prospects.

Whitney stated that she believes there is potential to increase the amount of capital reaching these founders beyond what can be achieved through investment alone.

He believes that establishing a network that concentrates on supporting under-represented entrepreneurs will level the playing field in obtaining and securing capital.