Banking platform for Black and Latino communities Greenwood raises $45m

Banking platform for Black and Latino communities Greenwood raises $45m

Greenwood, the digital banking startup for Black and Latino people and business owners, has closed a $45 million funding round led by Pendulum, an investment firm designed for founders of colour.

Cercano Management, Cohen Circle, The George Kaiser Family Foundation, NextEra Energy, Bank of America, Citi Impact Fund, PNC, Popular, Truist Ventures, TTV Capital, and Wells Fargo all joined the round.

The brainchild of former Atlanta mayor Andrew Young, Run the Jewels member Killer Mike - AKA Michael Render - and Bounce TV network founder Ryan Glover, Greenwood is named for the prosperous "Black Wall Street," part of the Greenwood District of Tulsa, Oklahoma, during the early 20th Century.

The venture aims to tackle a racial wealth gap that in 2020 saw white households hold 84% of total household wealth in the US, with Black households holding just four per cent - despite making up over 13% of the population.

Greenwood has signed up more than 100,000 customers to its digital banking platform, where it offers a host of products in partnership with FDIC-insured banks.

However, it is also building a wider community of more than a million members thanks to the recent acquisitions of The Gathering Spot, a private membership network, and Valence, a career development and job recruiting platform.

These acquisitions are being used to launch a new Greenwood membership called Elevate, which offers access to physical clubhouses, a networking platform and job listings. Members also get access to invitation-only events and other benefits such as luxury travel amenities.

Says Ryan Glover: "Our vision is to make Greenwood the premier destination for Black and Latino wealth creation and regeneration while keeping community connection and collective professional advancement at the centre."

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