A significant stride towards economic equity has been made with the launch of the RUNWAY ROOTED Fund, spearheaded by RUNWAY, a Black women-led financial innovation firm. This new $50 million fund is dedicated to supporting businesses, cooperatives, and grassroots organizations that foster wealth in Black communities across various regions in the United States.
A new approach to reparative finance
The RUNWAY ROOTED Fund is not just an ordinary investment fund; it marks a departure from conventional investment practices. It aims to address deep-seated systemic issues contributing to the racial wealth gap, serving as a means of restitution and revitalization. Jessica Norwood, CEO and founder of RUNWAY, articulated the significance of this fund:
“For too long, the racial wealth gap has persisted, fueled by systemic injustices that trace back to our nation’s dark history of enslavement and discriminatory policies. 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.”
With alarming projections suggesting that the median wealth of Black Americans could drop to zero by 2053 if current trends persist, the need for reparative financial solutions is evident. RUNWAY aims to counteract this with collaborative investments from like-minded investors and philanthropic organizations, including BUILDERS, The No Regrets Initiative, and The Kataly Foundation.
Creating transformative economic solutions
RUNWAY’s strategy involves uniting business owners, investors, community partners, and policymakers to create transformative economic solutions. Since its inception in 2017, RUNWAY has distributed $3.3 million in holistic, repair-focused funding to over 50 businesses in California and Massachusetts, which have collectively generated $15 million in revenue. Initiatives like The Friends & Family Fund and The Real People’s Fund showcase financial innovation through non-extractive terms and trust-based underwriting.
Nina Robinson, RUNWAY National Fund Director, emphasized the transformative vision of the firm:
“We are in the business of transforming the culture, practices, and policies of financial institutions, investors, and lenders to cultivate equitable outcomes for Black communities across the United States. Our holistic approach inspires self-determination and builds community wealth and power in Black communities.”
Doubling down on community investment
Amidst the challenges faced by Black women in the venture capital space, RUNWAY remains steadfast in its commitment to community investment. The $50 million RUNWAY ROOTED Fund, launched this year with an initial $6 million investment from BUILDERS, The No Regrets Initiative, and The Kataly Foundation, aims to support and empower Black communities.
Lynne Hoey, Chief Investment Officer of The Kataly Foundation, expressed their commitment to this cause: “We are proud to be an early investor in the RUNWAY ROOTED Fund, supporting businesses, cooperatives, and grassroots organizations that are building wealth and fostering resilience in Black communities. This is not just unacceptable; it’s a moral imperative to act. By supporting this transformative initiative, The Kataly Foundation is taking a stand for justice and equity in finance.”
About Jessica Norwood
Jessica Norwood, the founder and CEO of RUNWAY, is a financial activist, investor, and social entrepreneur. Known for her innovative work in economic disruption, Jessica promotes the practice of Friends and Family investments, a form of pre-seed capital she calls “Believe in You Money,” to support Black-owned businesses. Her work has garnered recognition from various prestigious institutions and media outlets, including NPR, Essence Magazine, and Fast Company.
RUNWAY’s bold initiatives and the RUNWAY ROOTED Fund stand as a testament to the power of community-driven, reparative finance in closing the racial wealth gap and fostering economic justice.