Bank of America and NCInvest Join Costco as Investors in Nex Cubed’s HBCU Founders Fund
San Francisco, CA - May 1 – Nex Cubed, a pre-seed venture accelerator on a mission to invest in and uplift underrepresented founders and underserved communities, announced today that Bank of America and NCInvest, a venture capital program backed by the State Small Business Credit Initiative (SSBCI), have joined anchor investor Costco Wholesale Corporation in support of its HBCU (Historically Black College/University) Founders Fund.
The HBCU Founders Fund is a venture capital fund supporting startups where at least one founder is an HBCU student, alum, or faculty member. In 2023, Nex Cubed announced the fund and its mission to address the disparity within venture capital funding not only for Black founders, but for Black founders with HBCU affiliations.
“The HBCU Founders Fund was created on the premise that while there is an unquestionable amount of talent at HBCUs, many startup founders with HBCU roots lack the access to capital, strategic resources, and customized support that is imperative to launch and grow a successful business,” said Nex Cubed CEO, Marlon Evans. “With support from organizations like Bank of America, NCInvest, and Costco, we’re able to address these needs.”
VP Kamala Harris announced $32 million awarded through the State Small Business Credit Initiative (SSBCI) to women- and minority-led venture capital funds to support historically underserved small businesses and entrepreneurs on March 1, 2024, in Durham, North Carolina. Link to post on X.
This news follows an event on March 1 in Durham, NC where Vice President Kamala Harris, North Carolina Governor Roy Cooper, and Deputy Secretary of the Treasury Wally Adeyemo highlighted the HBCU Founders Fund as an example of a program supporting historically underserved startups and entrepreneurs, in alignment with the White House's broader strategy and goals in this area.
“NCInvest is uniquely positioned to unlock equity investment avenues for high-growth startups and underrepresented founders in North Carolina,” said Rodney Sampson, SSBCI 2.0 Fund of Funds Manager at NC Rural Center. “Our investment and partnership with Nex Cubed represents a crucial step towards fulfilling our mission to improve access to capital, catalyze job creation, and further impact equitable ecosystem development across our communities.”
“The HBCU Founders Fund has an important mission to catalyze HBCU affiliated entrepreneurs through their unique accelerator model,” said D. Steve Boland, Chief Administrative Officer at Bank of America. “We are inspired by the fund’s potential to drive economic opportunity for various under-served populations.”
The Fund’s first cohort launched in April 2023 and featured eight companies. The second cohort kicked off in November 2023 and included nine companies that recently completed a capstone demo day in Atlanta, Georgia on April 11, 2024. The third cohort will launch in July 2024.
Nex Cubed will continue fundraising efforts this year for the HBCU Founders Fund to support their target. Please note that investment in the HBCU Founders Fund is limited to accredited investors. For more details on accreditation requirements, please consult the SEC website.
About Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations. Among the company’s various initiatives is a commitment to support entrepreneurs by providing capital to funds, including those with diverse fund managers. As of December 2023, Bank of America has committed more than $550 million in equity investments to over 150 minority- and women-led funds, more than doubling its initial $200 million commitment.
About NCInvest
The venture capital program NCInvest is financed by the North Carolina State Small Business Credit Initiative (SSBCI) with a goal to support early-stage high-growth startups in North Carolina, primarily through equity investments.
About Nex Cubed:
Nex Cubed is a pre-seed venture accelerator on a mission to invest in and uplift underrepresented founders and underserved communities by providing early-stage capital, resources, community, and hands-on support based on the founder’s priorities. Nex Cubed’s HBCU Founders Accelerator seeks to foster and invest in startups where at least one founder is an HBCU student, graduate, or faculty member.
Since 2017, Nex Cubed has invested in 90+ portfolio companies, accelerated 225+ startups, and developed a global ecosystem of 20+ corporate partners, 100+ investment partners, 80+ strategic advisors, and over 140 mentors. To date, Nex Cubed portfolio companies have an aggregate value of over a billion dollars and nearly 65% of the Nex Cubed portfolio is led by underrepresented founders.
For more information on The HBCU Founders Fund, please visit: https://www.nex3.com/hbcu-founders-accelerator
Media Contact:
Maggey Hoffmann
Maggey@nex3.com