RUNWAY Rooted Tackles Racial Wealth Gap with $50M Fund

RUNWAY, a financial innovation firm, has launched its RUNWAY ROOTED Fund, an integrated capital investment fund aimed at supporting businesses, co-operatives, and grassroots organizations in Black communities across select regions of the United States. With a target of $50 million, the Fund has already secured nearly $6 million from financial institutions, investors, and philanthropic funders.

The RUNWAY ROOTED Fund seeks to address the persistent racial wealth gap in the United States, which has been attributed to historical factors such as enslavement, discriminatory laws, and banking policies. According to Prosperity Now, if the gap is not addressed, the median wealth of Black Americans could fall to zero by 2053, while median white household wealth is projected to reach $137,000.

RUNWAY ROOTED Fund is a departure from conventional investing paradigms and a model for reparative finance. The organization has previously supported the distribution of $3.3 million in funding to over 50 businesses in California and Massachusetts, which have since generated $15 million in revenue.

The Fund has received support from various investors, including The Kataly Foundation. Lynne Hoey, Chief Investment Officer of The Kataly Foundation, stated that supporting the RUNWAY ROOTED Fund is a step towards fostering resilience and building wealth in Black communities.

RUNWAY National Fund Director Nina Robinson emphasized the organization’s mission to transform financial institutions’ culture, practices, and policies to cultivate equitable outcomes for Black communities. The Fund aims to unify business owners, investors, community partners, and policymakers to develop economic solutions that promote self-determination and build community wealth.

The RUNWAY ROOTED Fund will invest in businesses located in select geographic areas where Black people make up at least 20 percent of the population, regardless of the race of the business owners or leadership. The Fund has been recognized in this year’s Transformative 25 (T25) list, highlighting impactful funds, banks, and initiatives in impact investing.

As RUNWAY continues its efforts to reimagine financial policies and practices, the RUNWAY ROOTED Fund represents a significant step toward addressing systemic barriers and promoting Black economic empowerment in the United States.