Venture capital firms have vastly overlooked Black and Latinx-led technology firms, leading Mastercard to join a growing list of financial services companies trying to correct the problem through targeted initiatives.
Mastercard on Wednesday launched a Start Path track that will focus specifically on startups founded by Black people, Indigenous people, people of color and women. The startups will receive enterprise partnership readiness training, mentorship and coaching and introductions to investors. The card brand will also consider grants or investments in some cases. Each participant is paired with a dedicated sponsor who works to ensure the startup gets support
The first participant in Mastercard's new Start Path track is SpenDebt, a St. Louis-based firm that automates debt repayment.
The Start Path program is part of a broader initiative at Mastercard to reach underserved firms, including investments in equitable investment organizations such as the Fearless Fund, CNote, Authentic Ventures and the Astia Fund.
The card brand has additionally partnered with community development financial institutions such as Grameen America, Accion Opportunity Fund and the Community Reinvestment Fund USA, all of which aim to expand access to capital and loan relief for underserved markets.
Less than 3% of VC funding goes to startups with Black or Latinx founders, according to
