Red Bike Capital, a Leading Early Stage Venture Firm, Closes Equity Investment from Bank of America
NEW YORK, NY / ACCESSWIRE / January 12, 2023 / Red Bike Capital, a Latino and woman-led early stage VC fund, announced today an equity investment from Bank of America that will help sustain momentum toward Red Bike Capital’s goal to invest in early stage companies that power the economy and significantly improve people’s lives.
Rachel ten Brink and Herman Goihman- General Partners at Red Bike Capital
Red Bike invests in founders that leverage technology to improve financial inclusion, power commerce, drive sustainability and provide better health outcomes. With a deep network in the startup ecosystem, Red Bike receives 75% of their deal flow directly from founders referring founders. Red Bike Capital has made four investments to date.
Red Bike Capital is led by two Latino General Partners: Rachel ten Brink, a Y-Combinator founder who raised $29M in venture capital and spent 15 years building billion dollar brands at L’Oreal, Estee Lauder and P&G, and Herman Goihman, an experienced investor and Fintech expert who started his career as an investment banker and has held senior investment roles at Bank of America and Taconic Capital.
Latinos are the most entrepreneurial group in the United States, starting businesses at a faster rate compared to other backgrounds. Latinos account for 20% of the US population, but receive only 2% of Venture Capital funding. Not coincidentally, only 2% of Venture Capital Partners are Latinos, and a minuscule 0.1% are Latinas.
“We’re delighted to bring on an investor that is so aligned with our mission to drive opportunity and returns. There is a huge wave of economic power coming behind us - one in four Gen Z’s is Latino and we represent 70% of the growth in the US labor force. We are contributing significantly to the future of this country,” said Rachel ten Brink, “As a founder, I was one of just 90 Latinas to ever raise over $1M. Now, as an investor, I want to continue to pave the way through financial support and deep operational expertise. We need to open doors and create pathways for the next generation of breakout founders. The backing of a leading financial institution like Bank of America to diverse emerging managers affirms their belief that bringing diversity to both sides of the cap table can have a multiplier effect driving inclusion and equity, while delivering outsized returns.”
Bank of America’s investment is a part of the company’s commitment to advancing racial equality and economic opportunity. As a part of this commitment, the bank has allocated more than $400 million to over 100 minority-focused investment funds across the U.S., acting as a force multiplier, encouraging other institutions to deepen investments into under-capitalized funds. In turn, these funds invest capital into under-represented minority and women entrepreneurs to help them establish and grow their businesses.
“Bank of America wants to be a true catalyst for positive change providing opportunity and access to capital to extraordinary founders who are creating significant value, yet have historically gone overlooked,” said Jose Tavarez, President of Bank of America New York City, “Our goal is to empower talented fund managers like Red Bike Capital as they drive equitable innovation and empower founders with hands-on operating support.”
Learn more about Red Bike Capital’s activities here.
About Red Bike Capital
Red Bike Capital is a Latino and woman-led early stage VC fund based in New York that invests in US-based founders in FinTech, SAAS, and Health and Wellness. Founded by Rachel ten Brink, a successful Latina Y-Combinator founder turned VC, and Herman Goihman, a seasoned Fintech expert and Credit investor, the team has 30+ years of experience with an authentic connection to the startup ecosystem and a strong track record in asset management.
Learn more at www.redbikecapital.com, and connect with us on Twitter ( @redbikecapital )
About Bank of America
Bank of America is one of the world’s leading financial institutions, serving individual consumers, small and middle-market businesses and large corporations with a full range of banking, investing, asset management and other financial and risk management products and services. The company provides unmatched convenience in the United States, serving approximately 68 million consumer and small business clients with approximately 3,900 retail financial centers, approximately 16,000 ATMs and award-winning digital banking with approximately 56 million verified digital users. Bank of America is a global leader in wealth management, corporate and investment banking and trading across a broad range of asset classes, serving corporations, governments, institutions and individuals around the world. Bank of America offers industry-leading support to approximately 3 million small business households through a suite of innovative, easy-to-use online products and services. The company serves clients through operations across the United States, its territories and approximately 35 countries. Bank of America Corporation stock (NYSE: BAC) is listed on the New York Stock Exchange.
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Rachel ten Brink
SOURCE: Red Bike Capital
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