Insider Q&A: Accenture directs capital to Black start-ups
NEW YORK (AP) —
Kathryn Ross was one of just two Black women in Accenture's Miami office when she first joined the global consulting firm nearly 27 years ago. Now a managing partner, Ross was tapped in December to create the inclusion and diversity agenda for Accenture's venture capital investment arm.
Five months later, the police killing of George Floyd convulsed the country. The coronavirus pandemic was taking a disproportionate toll on Black-owned small businesses, which have been twice as likely to close during the pandemic as businesses overall, according to the Federal Reserve Bank of New York. The economic crisis widened the unemployment gap between Black and white Americans.
It was a galvanizing time for Ross, the mother of two boys aged 11 and 13. Rather than simply setting diversity goals, she resolved to create an initiative to bring venture capital to Black-owned businesses, which only receive about 1% of such investment in the U.S. The Black Founders Development Program will connect Black founders with Accenture's business partners and clients. Accenture will also directly invest in Black tech start-ups through a new fund.
The initiatives are among several taken by major companies to bridge racial inequities in the wake of the Black Lives Matter protests. Netflix announced it would invest $100 million in Black-owned banks. More than 40 private and publicly traded companies joined a pledge to add at least one Black member to their board of directors by 2021. Mastercard pledged to invest $500 million in Black communities over the next five years.
In an interview with The Associated Press, Ross discussed the inspiration behind the Black Founders Development Program. The conversation has been edited for length and clarity.
Q: You've said one of the reasons why Black-owned companies receive so little...