Yinka Faleti is the new partner at Ascend Venture Capital | Business News

Yinka Faleti hopes to raise $25 million to help invest in minority-led businesses. 

According to Faleti, last year, venture capital (VC) firms across the nation had an outstanding record, $330 billion was invested into companies across the U.S.

However, less than 1% of the company’s founders were Black, and 3% of the founders were women.

And Faleti says those statistics stink. 

“I care about this personally, and that’s a big part of why I’m in this space,” said Faleti. 

Ascend Venture Capital has 18 portfolio companies, seven are founded and led by a minority. 

But in Faleti’s opinion, many local and national venture capital firms are not doing enough to ensure all entrepreneurs are included in opportunities that are beneficial to their business. 

White men control 93% of the $330 billion that was invested last year. 

“Most VC firms fund people who look like them, so many stones are left unturned when other communities are not considered,” said Faleti. 

So what is Venture Capital and how does it help entrepreneurs?

Well, it’s an economic investment tool that was introduced to the U.S. in the mid-70s. It’s how Facebook, Netflix, and other multi-million companies got their start. A VC firm invested in the business owner and the company.   

The investee receives financial support, mentorship, and the firm’s network to further grow the new business owner company. 

But because financial literacy is a newer topic in many Black and brown households, venture capital isn’t discussed at the dinner table. 

Faleti hopes to broaden the scope of introducing venture capital to minority-led businesses by helping to eliminate the bias in VC firms when it comes to investing in non-white male-led companies. 

Faleti knows he has his work cut out for him, but he is no stranger to succeeding in demanding circumstances. 

A Nigerian immigrant, Faleti graduated from Westpoint, studied law at Washington University, became a state prosecutor, led the Forward Through Ferguson Initiative, and ran for state secretary of state in 2020.

“My north star has always been, how do I positively impact the community,” said Faleti. 

And Ascend Venture Capital gives him that opportunity to impact overlooked talent in the St. Louis area. 

Working at a VC firm Faleti has the chance to ensure minorities have a seat at the table, they can create generational wealth. He says we can’t keep repeating the same mistakes from 250 years ago. Business owners north of Delmar now have a chance to generate economic viability in their community through the help of Ascend Venture Capital investing in them. It’s about companies having access to funds and investors. 

“As for people of color we have phenomenal ideas, for business, start-ups, and typically when we go into a bank for a loan, we usually don’t get the loan. And our ideas die on the vine,” said Faleti. 

He says it’s almost like you have to be rich to get rich and I’m here to create equity and opportunities for minorities and those who aren’t rich.