Women Of Color Connecting (WOCCON) Is A Convening Of Allies, Investors & Policymakers Who Want To Open Doors & Create A Path To Wealth For Women of Color Entrepreneurs
Newark, NJ, March 22, 2023 — The 5th Annual Women of Color Connecting Virtual Summit (WOCCON 2023), hosted by the Institute For Entrepreneurial Leadership (IFEL) March 7-9, started with a strong call-to-action. “Listen, learn, engage, then act,” stated IFEL CEO Jill Johnson, referring to the purpose-driven action needed to change the barriers faced by women of color entrepreneurs, of which capital constraint remains a defining problem. Despite a five-year high in venture capital funding, Women of Color entrepreneurs continue to receive a fraction of venture capital funding. IFEL attacks this problem by engaging its vast network of expertise and relationships to get more women of color on the grow-scale-exit trajectory to building wealth.
“WOCCON is a convening to bring investors, allies, and policymakers together who want to deepen their understanding of systemic problems that continue to keep women of color entrepreneurs locked out,” said Johnson. “We create a safe-space for open conversation and honest dialogue to help attendees determine how they can open doors for women of color entrepreneurs.”
With more than 700 attendees including entrepreneurs, supporters, allies, and organizational partners, the virtual 3-day summit featured honest and insightful dialogue from inspirational leaders. Discussions centered on the unique challenges women of color entrepreneurs face when trying to launch, grow, and scale their businesses as well as solutions to the challenges. Allies, champions and investors shared their experiences and wisdom on what it takes to eliminate obstacles and achieve success.
Key themes which emerged from the summit included the necessity for more effective accountability measures within DEI programs; the importance of acting on good intentions; the elimination of misconceptions & myths surrounding the investment risk in women of color-owned companies; the lack of diversity within the investor ecosystem and at VC firms; and the need for collaboration, transparency & honest communication between allies & champions, investors, philanthropists and government.
In her keynote ‘The Rocky Road To Success,’ Dr. Elizabeth Clayborne, creator of NasaClip, noted that entrepreneurs must attend to their physical, emotional and spiritual well-being to achieve success. “It’s hard to be successful when you are not happy,” Dr. Clayborne stated. She said that being a woman of color founder and raising capital can be an uphill battle. “In the current economy it’s difficult to fundraise and not an easy road. White men only have to go through 7 people to get to a yes. Black women must go through 70 to get to a yes. Keep walking through doors and taking risks. You as a CEO have to believe in yourself like nobody else.”
Insights from successful women of color entrepreneurs exposed antiquated views and bias from capital allocators. Robin Wilson of Clean Design Home Inc. and Emelyn Stuart of Stuart Cinema & Cafe experienced the same roadblocks to capital access. “There are so many biases I don’t know where to start. I’m building my movie theaters from scratch and dealing with people who are not used to working with women leaders, and that, I believe, affects funding and how money is allocated,” Stuart stated. She could not procure money from her bank because she had no debt and actually built the business using her own money . After consistently showing profit, she was still denied and believes that funders need to look through a wider lens. “Being the first one to do something is hard, but I don’t want to be the last woman to do something like build a theater. It’s not just about helping me; it’s about all the people in my community.”
Robin Wilson of Clean Design Home, Inc. echoed those sentiments and has never been funded despite a 22-year record of profit. “I remember going to a funding meeting and being told that we have never seen a brand like you. There is diminishment. When you stick to it for so long, there is this attitude that since you’ve been doing this for so long, there must be something wrong with your business because nobody has ever invested. That stick-to-itness should be rewarded and viewed as positive, not negative.”
Founders who successfully negotiated exits from the companies they built emphasized the importance of mindset. Amber Gilbert and Janelle Benjamin left the corporate world to pursue their passions. While Gilbert stayed on with the buying company and is still there today, both women stood strong on what is needed to help women of color move forward faster. For Gilbert, the scarcity mindset she observed in other women of color is unnerving. “I ran into mindsets of scarcity as opposed to abundance. Having that mindset of scarcity prevents the ecosystem from opening up and prevents success. We must come at this problem from a sense of abundance,” Gilbert stated. Benjamin, who has been an investor ever since her exit in 2018, wants to see women of color think bigger, and like Gilbert, has witnessed a ‘this is all I can get’ mentality. “We need to push women of color a little more to think bigger and go a little further. Someone offered me a million dollars, and I was like, wow! I called my advisor all excited, and he said what are you crazy…don’t even call that person back. ” So think bigger as opposed to thinking this is all I will get.”
High-powered allies, champions, and investors who have amassed impressive track records of supporting women of color entrepreneurs shared inspirational pearls of wisdom. Their words expressed confidence that lasting change is possible.
In the presentation ‘Unpacking Capital Access,’ JoAnn Price, Co-Founder and Managing Partner of Fairview Capital, and Chanel Cathey, Founder & CEO of CJC Insights, LLC, explored the systemic barriers within the investor ecosystem and provided perspective into why diversity among capital allocators is a key component of equity and inclusion within the entrepreneurial ecosystem.“The risk isn’t really the point. Fairview says no a lot, but our doors are always open to everyone for honest conversation and discussion. The barriers have to do with lack of individuals at companies who do not focus on diversity, equity & inclusion. What’s really important is that the capital paradigm is beginning to grow. We as women cannot sit back and wait for someone else to provide an opportunity. The only way to change it is to step in and make a difference,” Price, a pioneer of inclusive investing, stated.
Chanel Cathey, who combines her love of media and communications with investing, suggested that women of color need to find the best ways to communicate the most compelling parts of their entrepreneurial stories. “There is power in our network we don’t necessarily know about. Sometimes it’s hard because we are head-down building, but it’s important to bring our ideas front and center even though we will hear lots of no’s. You have to be intentional about building a communications story with all of the communications tools in your toolkits,” Cathey stated. “We need to turn up the pressure and the volume while staying focused on our businesses. We need to see and hear about more people doing different things. We need to see that in each other, and we need to see it in action, so people see us doing significant things in our own way. That’s the building block.”
Barbara Clarke, Founder of The Impact Seat Foundation, was an early investor in women and Black-owned companies. While she was able to identify companies to invest in, she noticed that industry chatter about inclusive investing was not accompanied by action. “Diversity theater….there was a lot of that. People were talking about doing something, but nobody did anything. There were groups trying to invest and saying they wanted to invest, but they didn’t change any of their processes,” Clarke said. She emphasized that people, especially allocators, need to question their processes and ask if they are looking at all companies equally. Leveraging the power of personal and professional networks to help under-represented founders is especially important. “Never underestimate social capital and time in angel investing. It’s really important for folks to use their social capital, especially when dealing with an under-represented founder. You can’t just do a hand off or simple introduction. You must be there with them. Be there in the room with them. Vouch for them as an ally.”
There are individuals who epitomize the phrase ‘allyship in practice’ and take action to build impactful relationships which produce wins for women of color entrepreneurs. They have the power to do something, and quite simply, just do it. The story of Adrienne Fudge, Founder of 40 Dreams Catering, and Chef David Martone, Founder of Classic Thyme Cooking School, demonstrates the power of relationship-building. Fudge, a former communications professional with a passion for cooking, experienced a great deal of growth in her business and needed to find a bigger location. Chef David Martone, Founder of Classic Thyme Cooking School, had a building to sell. After COVID-19 destroyed his sense of taste and smell, Chef Martone decided to close the business and sell the building housing his business. Fudge, in search of a building but worried about financing, called about Martone’s building. She was not particularly optimistic as in the past, people seemed to not want to sell to her. All of this changed in an instant when Martone invited Fudge to dinner. Fudge’s business advisor cautioned her that this was not the way to do business. “But it is how to do business,” Martone declared. “My father taught me that when you want to do business with someone, you sit down and have dinner first. I thought to myself how great it would be to have a business like Adrienne’s in my community. Look at all she has accomplished.” Fudge continued to worry about financing and the unfavorable terms from her bank attaching her personal assets. Martone urged Fudge to contact him with any issues. She postponed talking to him. A twist to the story shows the importance of taking action on good intentions. While Fudge never even had to ask Martone for financing, he offered to hold the mortgage note. “It’s all so perfect,” Fudge said. “This was different from just being validated. It was more like acceptance, open and complete acceptance. You don’t find this very often. Getting to know David was amazing.” Martone made it very clear that this was not charity or philanthropy and spoke about the time that he received help from the previous owner of the building when he was the buyer. “There was nothing to make this deal not happen. Adrienne had everything. She came to the table to do business. She was prepared. I wanted to see it happen. When I was trying to buy the building, I took an equity loan to do renovation and then needed to get funding. The owner helped me, so why would I not do this for someone else. It made all the sense in the world,” Martone concluded.
Change would never happen without trailblazing individuals who engage in bold action to create the changes they want to see. Dr. Charlotte Jones Burton, Founder & President of Women of Color In Pharma (WOCIP), and Diedre Windsor, President, Windsor Group, LLC, are inspirational leaders who have given their time, talent & resources to advance women of color.
Dr. Charlotte Burton-Jones started Women of Color In Pharma to advance health equity in the pharmaceutical industry while helping to advance women into positions of power. Her vision was to create agents of change through the advancement of her peers. The organization evolved and now includes an investment group to support women of color entrepreneurs by matching potential investors with founders, something that her mother would be very proud of. “I will tell you that I was raised by a very strong Black woman…my mother who was a single parent and herself an entrepreneur. And I watched her give to other Black women entrepreneurs. She spent her time with them. She taught them, shared resources and invested in them. And what I learned is to whom much is given, much is required. That pushes me everyday to think about what I can do to add impact and value.” Even as a physician, Dr. Jones Burton was not exposed to investing, like many others in the Black community, and did not have the time to learn. WOCIP provides an opportunity for learning and enables action. She explained that many individuals make an excellent living in the industry and receive annual bonuses. “ I think that’s an opportunity to be intentional. Be intentional about those funds. That’s a perfect opportunity and a perfect time to write a check,” she stated.
Diedre Windsor, founder of Windsor Group LLC, a professional services company based in Chevy Chase, MD, cites her most important goals as giving back to the community and supporting women of color and veterans. “It’s true what they say that you almost need to already have money to start a business. I recognize how important it is to get that early capital.” The message of taking individual responsibility for opening doors for others resonated at IFEL’s Women of Color Connecting (WOCCON) 2022 Summit where Windsor was a panelist. She decided that helping to address access to capital is a way that she could help. Shortly thereafter, she made the initial investment to fund what is now the IFEL Capital Catalyst Initiative, which will be used to support crowdfunding loans through the Kiva platform for women of color-and veteran-owned businesses. IFEL will make initial loans on Kiva to begin the online crowdfunded campaigns. Once the loan has been repaid by the business owner, the funds can be targeted to another entrepreneur. The initiative is designed to encourage giving that has a multiplier effect. Building on a pilot started in 2021 to support Newark, NJ area businesses with $1,000 crowdfunding match loans, the IFEL Capital Catalyst initiative is seeking funders who will make charitable contributions that IFEL can use to catalyze funding for small businesses.
The role of an ally comes with responsibility. Amanda Halter of the law firm Pillsbury Winthrop Shaw Pittman LLP, and Vinodh Swaminathan, KPMG, shared what the role of ally means to them. “Being an ally to me means using my sphere of influence and social capital daily. It’s not enough to say we don’t want to exclude you. It’s about the million decisions everyday we have to intentionally make as leaders that we need to address. Simply asking the question if we have thought about our diverse personnel in decisions is important and should be part of the decision-making process,” Halter stated.
Swaminathan also spoke about personnel issues and noted, “The opposite of exclusion is not automatically inclusion without the intention. One of the things I do consciously is to question if there are more fundamental things we can do to hire the right people. Are we doing the right things to hire the right people to assemble a diverse team?” He explained that KPMG has expanded recruiting initiatives and also considers Black colleges as a source of talent.
For allyship to be effective, sustained momentum is needed for impact. “It’s about using the resources and political capital you have to be inclusive and then to follow on from there in a way that keeps the momentum from that inclusion. It’s not about a single lunch invitation; it’s about the long-term relationships being cultivated. Relationships happen over the course of your career and are for the long term,” Halter said. Swaminathan agreed and also believes that everyone has the ability to open doors for others. “We as people have to recognize that we are all inherently powerful and have networks. That’s the first step. The key is recognizing multiple moments and opportunities to help.”
Several events in 2020 including the murder of George Floyd led to a mass awakening and outcry around racial injustice issues and systemic exclusion. However, many fear that the focus on DEI (Diversity, Equity & Inclusion) has lost momentum. Tynesia Boyea-Robinson, President & CEO, CAPEQ; Joe Scantlebury, Founder & CEO, Living Cities; Chrissy Thornton, President, Associated Black Charities; and Patrice Green, Program Officer, Surdna Foundation, discussed the importance of sustained focus and called for unity in action amongst allies, investors, philanthropists and government. As community leaders and advocates for racial justice, each offered the wisdom of their experience.
Boyea-Robinson emphasized that DEI is not a short-term project. “It’s a marathon, not a sprint. I liken it to someone who wants to run a marathon and pats himself on the back for going out and buying shoes. There is a short term mindset. You actually have to be in it for the long haul to get the impactful outcome.”
Scantlebury cited statistics noting that only 2% of investment capital is managed by women and people of color, showing a lack of diversity in the investment community. “I do think it’s key to unlock overall capital and direct it to Black fund managers. The question should stay centered on why I can’t see the DEI opportunities in front of me and who do I need around me to see them? There are some white people who have discovered that diverse companies perform better. They have changed their lens and realize they can make out.”
While Thornton believes DEI is not dead and there are numerous opportunities for revitalization, she questioned the role of grants and philanthropy in preventing change.
“It seems like there is demographic questioning in grants that doesn’t really reflect diversity. It keeps the money in the cycle it’s always been in instead of the cycle of where it should be. It’s another way to perpetuate inequity.”
Green offered advice for those in power who have the ability to affect policy. “Big business is not what’s creating the jobs for tomorrow. It’s the small businesses. We talk about the economy everyday; we talk about policy everyday, because that’s what will make a difference in people’s lives. It’s change, not charity.”
There was a strong consensus amongst the panel that successes and failures need to be integrated into learning platforms and programs, so information can be shared.
Scantlebury stated, “It’s important for us to share the knowledge we have acquired and the knowledge others have acquired. There are many ways people are innovating, but a lot of the knowledge and insights aren’t being shared in accessible ways to those who need access to it. We don’t lift up the work we are all doing, all the innovations.”
Green offered some final thoughts and a simple but strong call-to-action. “Get committed for the long haul. Recognize that change doesn’t have to happen today, but you can do something today. Think about who you talk to and what you do every day.”
“These amazing people are our champions and are making a huge impact,” stated IFEL CEO Jill Johnson at the conclusion of the summit. IFEL will continue to create pathways for all of these allies, so they are able to help women of color. Now is the time to act.”
Wells Fargo is the Champion Sponsor with supporting sponsorship from Valley Bank and the New Jersey Economic Development Authority. Minority Business Entrepreneur and
THIS IS IT NETWORK are media sponsors.
For more information on supporting the Women of Color Connecting movement, visit https://www.woccon.org.
About The Institute For Entrepreneurial Leadership
The Institute for Entrepreneurial Leadership (IFEL) is a 501(c)3 nonprofit organization that leverages the power of relationship capital to create pathways to success for Black and Latinx entrepreneurs and small business owners. Founded in 2002, IFEL’s mission is to eradicate the systemic barriers that prevent people from historically excluded populations from being able to access the knowledge, networks, and capital required for entrepreneurial success and wealth creation. www.weareifel.org.
