KINETIC

The biggest problem facing entrepreneurs, in general, is funding. Research published in May 2020 by the Kauffman Foundation states that for aspiring entrepreneurs "92% reported that funds to start the business was challenging and close to the same share, 86%, reported that funds to grow the business was challenging." Likewise, the data indicate that seasoned entrepreneurs consider funding a major hurdle. The same research tells us that this problem is even more severe for diverse entrepreneurs who launch with approximately one-third of the startup capital that majority entrepreneurs do.

The solution is KINETIC, an online platform that brings together entrepreneurs, funders, and other related stakeholders to engage with one another. At KINETIC, we envision a world where funding is available, accessible, and adequate for all people to pursue their entrepreneurial dreams.

Our solution will positively change lives if scaled by helping to close opportunity and wealth gaps.

The specific problem that we are working to solve within the Challenge is a lack of equitable access to generational wealth creation in communities of color. Our solution focuses on ensuring available, accessible, and adequate funding for entrepreneurs of color. Research published by the Kauffman Foundation and generated by our own primary market research indicates that the average level of startup capital for black entrepreneurs vs. white entrepreneurs is $35,205 vs. $106,720. This disparity has dire consequences for the viability of black startups, for instance. Based on the Small Business Administration’s data, we estimate that every year approximately a quarter of a million businesses less than one year old are affected by this disparity. KINETIC’s six initiatives address many of the factors that contribute to the problem. Here are examples from two initiatives. First, KINETIC's annual virtual conference, KINETIC-CON, provides education about a shrouded and often intimidating topic: Funding. Entrepreneurs learn about the many types of funding that exist, where to find it, and how to obtain it. Second, KINETIC democratizes access. Our matching algorithm addresses market failures by minimizing the need to have a strong personal network to secure funding.

KINETIC is an online platform that helps entrepreneurs find, receive, and learn about funding. The hub or one-stop shop enables a thriving community of entrepreneurs, funders, and other related stakeholders to seamlessly engage with one another. Specifically, the platform comprises six initiatives: an annual conference called KINETIC-CON, a matching algorithm, an equity crowdfunding application, a grant program, an investment fund, and entrepreneurial support services. These initiatives will be rolled out in stages over the course of three years. The platform uses various web and AI technologies to close the wealth gap and catalyze the creation of generational wealth through entrepreneurship.

The target population of KINETIC is entrepreneurs of color in the United States of America who have a business less than one year old. In general, this target has significantly less access to capital to launch businesses for a myriad of reasons that our solution addresses. This population is underserved for reasons that stem from hundreds of years of systemic racism in the United States of America. Specific barriers caused by systemic racism include redlining, legal restraints on property ownership, lack of government subsidies and aid, underfunded schools, police brutality, illegal higher costs, social isolation, and so on. The cumulative effective of such obstacles perpetuated across generations creates a reinforcing negative loop of disparity and inequality. KINETIC will use technology to directly deliver resources such as capital and education to overcome the aforementioned hurdles.

The mission of KINETIC aligns perfectly with the Solve Challenge. In short, KINETIC uses technology-based solutions by and for communities of color that create a more equitable future by increasing access to capital for entrepreneurs of color. By doing this, we help to close the wealth gap and catalyze the creation of generational wealth through entrepreneurship. Our mission is even more urgent given the especially devastating impact of Covid-19 on the financial well-being of communities of color.

KINETIC is a multifaceted project with six major initiatives. The development of the initiatives ranges from concept to growth. The most developed initiative of the six is our annual virtual conference for entrepreneurs and funders that is highly profitable and poised for further growth. The conference is called KINETIC-CON. (Read about KINETIC-CON: https://tinyurl.com/kineticconmitrecap.) Another initiative, our matching algorithm that connects entrepreneurs and funders, is in prototype phase. The remaining initiatives, including our equity crowdfunding platform, are in concept phase. Through primary market research and the launch of KINETIC-CON, we have created a vibrant, core community of about 2,000 people to test our initiatives.