Melissa Bradley, Founder, 1863 Ventures

Core Thesis on Economic Prosperity: Bradley argues that racism is a political and economic issue that stifles U.S. global competitiveness and GDP growth, asserting that leveraging data to include marginalized populations is essential for societal betterment.

Personal Origin Story:

• Born in New York to a single mother who worked cleaning houses and dropped out of college to care for her grandmother; the family lived in a one-bedroom apartment in Jersey and relied on food stamps.
• At age 17, wrote a senior thesis on solving the racial wealth gap.
• Received a guarantee from a school representative named Gordon Chavez that financial aid would be secured for her Georgetown University attendance.
• After graduating and being unable to find a Wall Street job during a market dip, worked selling $19 billion in student loans, eventually leaving the role after realizing she was "selling her people down the river" by saddling borrowers with debt.
• When denied an SBA loan by a loan officer citing three "strikes" (being Black, being a woman, and the officer claiming no knowledge of successful Black women in finance), she vowed to prevent others from facing similar barriers.

Investment Philosophy and Market Opportunities:

• Bradley rejects the term "minority," defining Black and Brown populations as the "new majority" who dominate culture and will soon outpace other demographics globally.
• Cites research stating that historical marginalization of these groups has cost the U.S. economy $16 trillion in misrevenue.
• Demographic Shifts: Notes a 40% decline in white male entrepreneurs while Black and Brown populations start businesses at the fastest rates.
• Capital Barriers:
  • Diverse entrepreneurs face higher startup costs, estimated at $250,000 more than white peers.
  • "Friends and family" rounds for Black entrepreneurs averaged $750,000 in Bradley's experience, often with unrealistic repayment terms (e.g., "next Thursday") compared to white peers' $250,000 rounds.
• Sector Bias:
  • Critiques the venture capital focus on tech, noting less than 20% of Black businesses are in tech, while the majority operate in CPG, retail, health, beauty, wellness, construction, and IT services.
  • Emphasizes the need to recognize the history of successful non-tech Black enterprises, such as banks, insurance firms, and publishing companies (e.g., Bob Johnson).
• Primary Challenges for Entrepreneurs:
  • Imposter Syndrome: A lack of belief stemming from underrepresentation.
  • Access to Capital: Bias embedded in credit scores and underwriting decisions.
  • Knowledge Gap: A general lack of understanding regarding the diversity and history of Black entrepreneurship.

Government Role and Policy Recommendations:

• Experience: Served in the Clinton Treasury (regulator for Black banks), the Obama White House (Social Innovation Fund), and as Chief Strategy Officer for the Corporation for National Community Service (CNCS).
• Critique of Grants: Administered large grant programs but found that 50% of dollars often failed to reach intended groups due to intermediary margins; estimates a 15–20% loss to administrative slush.
• Preferred Mechanism: Advocates for tax credits and leveraging Universal Basic Income structures to deliver funds directly, bypassing intermediaries.
• Effective Government Functions: Believes government is best used as a "bully pulpit," signal creator, and incentive driver for regulated industries rather than a direct grantor.

Goldman Sachs Initiative "One Million Black Women":

• Commitment Structure: Features a $10 billion investment commitment and a $100 million investment fund.
• Significance: Bradley identifies this as the most significant commitment to date because the investment capital significantly outweighs the charitable component, signaling a belief in economic return rather than just aid.
• Tracking Concerns: Notes that historically, less than 10% of corporate commitments following social justice movements have been fulfilled.
• Outcome: Praises the initiative's signal effect regarding Goldman Sachs' belief in the economic viability of historically marginalized communities.

Forward-Looking Statements:

• Bradley asserts that continuing to marginalize the "new majority" will prevent the U.S. from competing with other countries and achieving its full GDP potential.
• Predicts that the shift in demographic power will inevitably force a restructuring of the capitalist paradigm to include people of color as asset holders rather than assets.