Studies have shown that, when financing a business, there is a noticeable gap in capital between white founded companies and minority founded companies. In an effort to assist underrepresented groups with their startups, the Metropolitan Economic Development Association (Meda) and the City of Saint Paul, Minnesota will be hosting the first-ever national ethnic minority owned business Million Dollar Challenge.
The competition is modeled after “Shark Tank,” consisting of 20 companies who have 5 minutes to pitch their idea to a panel of judges and show why their business is worth the investment. This initial round, held on October 10th, is part of Twin Cities Startup Week and is also occurring a day before the national Blacks in Technology in Indianapolis.
Ten contestants are chosen from the initial round to move on to the “accelerator round,” where they receive valuable feedback and mentorship from investors and industry experts. The whole event culminates in January, at the final round, where one company wins $1 million to fund their business in the form of a convertible note.
Meda believes that economic development, through equal participation, helps communities thrive. Their services include business consulting, financial solutions, and market opportunities for minority entrepreneurs.
Applications are now open and are due by 5pm CT on September 12th.
