Often Black Entrepreneurs Have Merit,
But too often they are Invisible and Unconnected
Blacks and other under-represented entrepreneurs often possess significant merit and unparalleled talent that would elevate them to the elite of their pursuits but unlike their exceptional peers from the majority community in North America, blacks too often are invisible and unconnected to the resources of the decision makers
THE WILL TO FIND A WAY
The Houston/Chavers Initiative creation was inspired by the analytical rigor and commitment of Charles Hamilton Houston while pursuing justice and equality and the dedication and business acumen of P.W. (Pearl William) Chavers in pursuing economic progress for people of African descent. These twin principles guide and serve as the spirit and raison d'etre of the HCI.
The Problem HCI is addressing
Mike Milken and Drexel Burnham Lambert initiated raising millions of dollars for black-owned businesses when other bankers turned them down including for: TLC Beatrice ($985 million), Georgetown Capital Partners ($105 million), American Shared Hospital Services ($35 million).
The TLC Group became viable because Mike Milken agreed to back Reginald F. Lewis. “What impressed me most was that he did his homework before any transaction. Eventually, we were pleased to provide nearly $1 billion in financing when the transaction closed in 1987.” Mike Milken.
When Mike Milken was indicted for securities fraud in 1989, access to the mainstream of money dried up for African American entrepreneurs because no other investment firm since has raised as much money for black-run companies.
Clearinghouse
HCI seeks to be the clearinghouse to launch and revive black businesses, address their needs and formulate how they gain access to needed capital. Launching and stabilizing a business correlates to both adequacy of non-cash pay start-up equity capital and eventually the ability to obtain lower cost debt capital to finance the following: 1) working capital and 2) growth. So future debt is the twin of present-day equity.
Network
Our network is our greatest value. HCI has a vibrant and unique network that is inclusive of: venture investors and venture capital firms, family offices, Wall Street executives, corporate executives and managers, supply-chain vendors, university professors and administrators.
We live in a ‘relationship economy’ in which everything from access to capital, vendors, customer acquisition, product placement are predominantly driven by relationships and connections. Our network is a strong lever that we bring to our portfolio companies.
Our passion and goal is to democratize the capital raising ecosystem and to create our own ecosystem for black and other minority owned/run companies to connect and thrive together. HCI will amplify the mission and help our portfolio companies accelerate their journey by helping them access capital and scale.
We will challenge the status quo and dare to venture where others have not been and will not go.
Purpose
The Houston/Chavers Initiative endeavors to assist in improving the economic status of men and women of the black community. Through our activities the HCI aims to be a catalyst for business development for black entrepreneurs who historically have had a difficult time accessing the capital raising ecosystem to start or expand a business.
We strive to help ambitious and bold entrepreneurs who lack access, relationships and formative resources. HCI looks to build bridges between investment capital and entrepreneurial potential.
Our mission is to spur black entrepreneurs and other underrepresented founders to develop transformational, prosperous, sustainable and scalable companies that will positively impact aspects of our society. We believe we add value by asking the right questions, not by having all the answers.
We will welcome anyone from any ethnic background who has a unique product or service and demonstrates market penetration potential to ramp-up and scale.
“I knew there was talent beyond just white voices. There were soulful sounds being made by Blacks but no one could hear them because they had nowhere to go to produce the kind of music Blacks wanted to hear,” Berry Gordy told an audience during a tribute to him at the Art Institute of Chicago. “All I wanted to do was help Black singers recognize their talent and share it with the world.”
Berry Gordy – hit making songwriter, Motown Records Founder, talent developer, visionary. Known as “The Chairman,” Berry Gordy, the founder and architect of Motown Records — an American original that arguably featured the most exceptional assembly of talent in music history.
What Berry Gordy and John H. Johnson did was to transform industries that blacks previously did not play leading roles in – and not only did they enter their chosen professions – but they dominated and transformed those industries and changed the way black businesses were looked on by people from all cultures.
The HCI is looking for bold entrepreneurs who are talented, determined and can demonstrate a strong value proposition that is scalable and sustainable.
“He put a human face on African people. He changed the face of American journalism,” Jesse Jackson said. “The media projected us as less intelligent than we were, less hardworking, less patriotic, more volatile, less worthy. But John Johnson affirmed us with a clear mirror and clear water. We were not ugly, the water was dirty, and the dirty mirror gave distorted images of who we really were.”
John H. Johnson, widely regarded as the most influential African American publisher in American history. Johnson expanded from magazine publishing into book publishing, and owned Fashion Fair Cosmetics, the largest black-owned cosmetics company in the world, Supreme Beauty Products, and produced television specials. Johnson also later became chairman and CEO of Supreme Life Insurance, where he had began his career.
