Heath Butler wants to see more minority startups receive capital and resources from venture capital investors. 

Butler, a venture partner at Mercury Fund, says the innovation economy has bypassed a lot of business communities, and that includes startups founded by women and people of color.   

While all communities are capable of innovation, Butler says having capital and resources to power that innovation is key, and many communities have been shut out.

According to Butler, the average entrepreneur can expect to retain 18%-22% of proceeds when their startup is sold. The rest of the money from the sale goes to the venture capitalist who backed the startup financially. The problem, according to Butler, is when an entrepreneur of color sells their business, they are mostly backed by white investors, and the majority of the profits from the sale of the business do not end up in marginalized communities. “That’s a problem,” he says.  

Butler says he is working to educate entrepreneurs and investors on how to provide access and resources to investors and entrepreneurs of color. He is working on a way to give investors a “de-risked” way of providing capital to entrepreneurs from marginalized communities.   

In addition, InnoPower is working on a similar program for investors and entrepreneurs in Indiana.