The NAACP makes an unprecedented move from advocacy to venture finance.

The National Association for the Advancement of Colored People (NAACP) announced last week its acquisition of a stake in Hello Alice, an online platform that helps business with resources to launch and grow, and focuses on underrepresented entrepreneurs. Two white women, Carolyn Rodz and Elizabeth Gore, founded venture-backed Hello Alice. NAACP’s investment will advance the startup’s goal to achieve economic equality for Black communities. (NAACP)

Civil rights organization NAACP was founded in 1909 to raise a voice against violence against Black people. It believes an inclusive economy allows all participants equal access to resources and opportunity. However, currently inequities stifle growth within Black and brown communities. According to one statistic, white families typically make 10 times that of black families.

Hello Alice

NAACP and Hello Alice are partnering on the Black-owned Business Resource Center to provide capital and networking opportunities for Black small business owners.

NAACP’s stake in Hello Alice will entitle it to receive all the same earnings as other investors on the cap table.

“To champion true racial equity, we need to address the long-standing economic inequality that has left Black communities underfunded and undervalued for centuries,” said NAACP President & CEO Derrick Johnson. “That’s why we’ve taken the unprecedented step to join as a part-owner of Hello Alice. Our Black-owned businesses, who already faced long-ingrained institutional barriers to success, continue to recover from the devastation thrust upon them by the pandemic. Between February and April of 2020, Black business ownership declined more than 40%, which is more than any other ethnic group. This first-of-its kind partnership is a pivotal step towards putting Black business at the forefront of our economy and as a result, building generational wealth and economic power for Black communities.”

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