A historical African American fraternity is giving back to the Black business community in a major way.
Fraternity Kappa Alpha Psi launched a ‘Seed At The Table’ to help fund Black businesses, Black Enterprise recently reported.
The crowdfunding platform has equity at the forefront of this mission-driven organization that thrives on linking up diverse entrepreneurs with “non-accredited investors looking to obtain equity and/or debt exposure at modest investment amounts” according to their website, https://www.seedatthetable.com/.
According to Watch The Yard, 18 Kappa Alpha Psi Fraternity Inc. members connected with 12 other Black and brown executives to create the company named Seed At The Table. The Equity Crowdfunding Portal is Financial Industry Regulatory Authority approved (FINRA), according to the article, which adds it will allow the entity to provide diverse founders the opportunity to “access to capital while also allowing investors to invest in a private business at lower minimums.”
The Seed At The Table founders added that their company is a handful of the several equity-crowdfunding portals “intentionally centered on giving a financial platform and backing for Black and brown entrepreneurs.”
The company founders encompass positions like executives, investment bankers, tech experts, professional athletes, and other seasoned executives, according to the article.
The California-based L.LC. said online that purpose for developing the company was to help assist financing access to a diverse group of entrepreneurs who were unable to obtain capital from traditional lending sources, according to the article. Seed At The Table goes beyond the mainstream methods so that these businesses and entrepreneurs can have the opportunity to offer and sell securities through its funding portal at SeedAtTheTable.com, the article added.
Seed A The Table is a Securities and Exchange Commission (“SEC”) and Financial Industry Regulatory Authority (“FINRA”) registered Crowdfunding Portal, according to the article, with investments under Regulation Crowdfunding, which is also described as Title III Crowdfunding.
Suzen Baraka, one of the company’s founders, told Essence that Seed At The Table was created “to normalize and redefine “Friends and Family” rounds for diverse founders by helping them to raise from a more accessible capital pool (think classmates, coworkers, non-wealthy family, and the like).
“This is done instead of bootstrapping and/or prematurely running to a VC without the ability to operate negatively and/or in absence of revenue,” the article added.
Seed At The Table is “committed to spurring economic advancement and firmly believes both a founder’s ability to access capital and an individuals’ ability to invest in the business and products they consume are paramount to the viability of Black and brown commerce,” founding member and brother of Kappa Alpha Psi, Pierre Le Veaux, said in the article.
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