CapWay Digital Bank CEO Sheena Allen Talks Accion Opportunity Fund and Other Funding Options for Black Entrepreneurs

CapWay Digital Bank CEO Sheena Allen Talks Accion Opportunity Fund and Other Funding Options for Black Entrepreneurs
Business Tools - CapWay Digital Bank CEO Sheena Allen Talks Accion Opportunity Fund and Other Funding Options for Black Entrepreneurs

While the journey of an entrepreneur is very gratifying, it’s not easy. The will need for capital is a main obstacle all entrepreneurs deal with. Luckily, means like Accion Opportunity Fund can appear to the rescue. 

No a single understands Black entrepreneurs’ have to have to have access to funding extra than Sheena Allen, the founder and CEO of CapWay. CapWay is the innovative fintech firm which is getting rid of barriers and closing gaps through electronic banking and other money companies for millennials and Gen Z. AfroTech spoke with Allen about how vital funding options like the Accion Option Fund are for Black business people.

AfroTech: Turning into the youngest lady in The us to individual and work a digital financial institution is an unbelievable accomplishment. Thinking of your non-tech qualifications, what influenced your journey as an entrepreneur in the tech and fintech industries? 


Sheena Allen: It is interesting. I double-majored in movie and psychology and minored in promoting, but the reality is I didn’t want to go to college or university. I was a product college student — varsity basketball, student council, a 4.2 GPA. But just after I graduated, I just wished some thing various. My mom and dad needed me to go due to the fact of my scholarships, and I’m actually a 1st-generation faculty university student. My senior calendar year of higher education, I experienced an strategy for an application. But when I could not uncover what I was hunting for, I determined to build it. That was my initial phase into tech. 


I obtained into fintech due to the fact I was traveling a good deal between the Bay and Austin. I observed the large change in the handling and accessibility to funds close to men and women who were more wealthy or in specified regions vs . Mississippi, exactly where I am from. That led me to think, “Hey, you know how to create a tech enterprise and how to chat to folks in Silicon Valley. You also know what it’s like when you even now really do not have a financial institution account.” Putting people two views jointly was my very first stage in fintech. 


AfroTech: You bootstrapped your to start with company, Sheena Allen Applications, and a ton of entrepreneurs sense they can do the exact. But how and why is it critical for youthful Black entrepreneurs to choose edge of other funding options (i.e., financial loans, investments, and so on.)?


Allen: It is like the declaring “Get it out the mud” — we don’t have an possibility but to do it that way. Sad to say, we’ve experienced to bootstrap since of the disparities and discrimination for Black persons, especially Black business people increasing dollars. But folks who have accessibility are not investing their very own income to get their enterprises off the floor. They’re working with investments and loans. 


We’re coming on a time where by we’re observing additional chances open up up, and there are far more resources for Black enterprises. I normally convey to folks that there are professionals and drawbacks to every. For illustration, if you get an investment decision, you give up fairness. But‌, 100% of zero is zero. So if you can, go get that expenditure and go get that mortgage. 


AfroTech: What funding selections and options did you choose benefit of, and how did they assist scale CapWay?  


Allen: CapWay is a undertaking funds-backed firm. We elevated outdoors funding and are targeted on institutional funding, angel investors and venture capitalists.


But there are a lot of selections now that weren’t readily available 5 decades in the past, and undoubtedly not 10 a long time back when I begun my really 1st enterprise. There are angel traders, tremendous angel buyers, fairness crowdfunding and far more. The setting up route I endorse is taking advantage of business enterprise loans — specifically if your small business suits the earnings product demanded. 


AfroTech: How did the COVID-19 pandemic impression your enterprise? Ended up there COVID grants or financial loans in place that you utilised as means? If not, how could some thing like the aid fund be beneficial? 


Allen: We were being extremely lucky, [even though] we did have to lay off a number of staff. The largest effects that the pandemic experienced on us wasn’t revenue alone but fundraising possibilities. We took a appear at the sector and noticed that, appropriate after the peak of COVID and the death of George Floyd, everybody was supplying mentorship or grant funds. Every company in the entire world was declaring, “We’re pledging X amount of pounds.”


As a VC-backed founder, I thought it was egocentric for us to choose gain of COVID reduction funds since we experienced tens of millions in the lender. With so lots of mother-and-pop outlets shutting down and getting to lay off staff members, I targeted on letting people today know what choices had been available. Being a fintech business founded by a Black girl, I created guaranteed CapWay was obtaining the phrase out about the grants and mortgage prospects to other Black-owned companies. 


AfroTech: What had been the biggest problems you confronted when increasing and scaling your providers? What information would you give to entrepreneurs experiencing very similar problems?


Allen: A challenge that people today do not converse about a ton is acquiring a fantastic workforce and possessing men and women who aid you defeat challenges. When you’re younger, hustling and bootstrapping — even VC-backed corporations — you have to find the appropriate staff. Even if you’re a solopreneur, you need that basis all-around when points get tough. Regardless of whether it’s a non secular person, a bigger staying or an individual you can decide up the cell phone and connect with, you require to have a person. 


Social media is terrific for business and networking, but it is also a obstacle. My greatest advice is really don’t allow what persons put up on social media make or crack you. Really don’t permit social media make you come to feel like everybody’s accomplishing astounding and you’re failing. You are not. Other individuals are going through the exact problems. 


Finally, the most significant challenge for Black gals is funding. We raise considerably less money than everyone — considerably less than 1% of VC pounds. It is not due to the fact our companies are not fantastic, not mainly because there are not some completely bad-ass Black females accomplishing remarkable points. They just really don’t fund us. You can simply call it unconscious bias or whatever else, but figures really don’t lie. 


This is why possibilities like Accion Chance Fund are fantastic for Black entrepreneurs. Accion Chance Fund is building a transform and supporting individuals who have been disregarded and underinvested. 


This editorial is brought to you in partnership with Accion Option Fund.