RUNWAY, a financial innovation firm led by Jessica Norwood, has unveiled a groundbreaking $50 million fund. This initiative aims to empower Black businesses and address the persistent racial wealth gap in the United States.
RUNWAY ROOTED Fund: A Beacon of Hope for Black Communities
The RUNWAY ROOTED Fund represents a significant step towards economic equality. It will invest in businesses, co-operatives, and grassroots organizations building wealth in Black communities across select U.S. regions.
Jessica Norwood, RUNWAY’s founder, emphasizes the fund’s importance: “The RUNWAY ROOTED Fund is not just an investment opportunity; it’s a beacon of hope and a clarion call for change. This is the path forward.”
Addressing the Racial Wealth Gap Crisis
RUNWAY’s initiative comes at a critical time. Projections show that without intervention, the median wealth of Black Americans could plummet to zero by 2053. Meanwhile, median white household wealth is expected to reach $137,000.
This stark contrast underscores the urgent need for targeted investment in Black communities. The ROOTED Fund aims to reverse this trend and foster economic resilience.
Pioneering Investors and Initial Funding
The ROOTED Fund launched with an initial $6 million investment. Key backers include BUILDERS, The No Regrets Initiative, and The Kataly Foundation.
Lynne Hoey, Chief Investment Officer of The Kataly Foundation, expressed pride in supporting the fund. She stated, “This is not just unacceptable; it’s a moral imperative to act.”
Integrated Capital Approach to Community Investment
RUNWAY’s fund employs an innovative integrated capital investment strategy. This approach combines various forms of financial support to maximize impact in Black communities.
By focusing on businesses, co-operatives, and grassroots organizations, the fund aims to create sustainable wealth-building opportunities. This holistic approach addresses systemic barriers to economic progress.
A Call to Action for Racial Economic Justice
The launch of the RUNWAY ROOTED Fund serves as a rallying cry for racial economic justice. It challenges other investors and institutions to prioritize closing the racial wealth gap.
