Clara Wu Tsai and the Social Justice Fund Announce Return of “BK-XL”

Social Justice Fund to Form Advisory Council of Venture Capital Firms to Identify Prospective Startups

Brooklyn, NY; April 2, 2024 – Clara Wu Tsai, founder of the Social Justice Fund and owner of the Brooklyn Nets, New York Liberty, and Barclays Center, announced today that BK-XL, a Brooklyn-based, early-stage startup accelerator for underrepresented founders, is returning for another year.

Up to twelve startups will be selected for BK-XL’s second cohort. Each receives a $125,000 investment in exchange for 7% equity on a SAFE note, with the opportunity to earn follow-on investments within 12 months of program completion. The program is industry-agnostic, welcoming startups registered anywhere in the US to apply and build their companies in Brooklyn. The Social Justice Fund and the BK-XL team are partnering with leading investing firms such as Benchstrength, Visible Hands, Udy Road, Harlem Capital, Infinity Ventures, and WndrCo who will serve on a program advisory council, helping to select founders and serve as guides throughout the program curriculum.

In addition to receiving funding from BK-XL, selected founders will participate in a ten-week immersion program in Brooklyn during which they’ll receive office space at Camp David in Industry City along with ongoing mentorship and support from investors and operators at Blue Pool Capital, Udy Road, BSE Global, the Brooklyn Nets, Barclays Center, and other partnering organizations. BK-XL and its network of partners will continue to support the selected companies after the completion of the accelerator program.

"We are proud to announce the second round of our BK-XL Accelerator," said Clara Wu Tsai. "We launched BK-XL in 2022 with a commitment to support underrepresented entrepreneurs with the requisite funding, network support, and access to resources to build extraordinary, enduring companies. We couldn't be more excited to welcome our new cohort to Brooklyn."

The 2023 inaugural BK-XL cohort included twelve startups across FinTech, Commerce, SaaS, and other diverse industries in Brooklyn, and provided valuable insight in supporting the needs of underrepresented founders. Of that initial cohort, 50% of companies received follow-on funding from BK-XL.

"Getting into BK-XL was one of the biggest highlights of our young organization. It gave us access to a community of creative and innovative thinkers who are also on the same journey, with whom we brainstormed and collaborated with," said inaugural cohort member and Founder & CEO of SWYW360 Jacob Makuvire. "We also got access to a community of industry leaders who are experts in different domains to support our organization. Without BK-XL, we would not have had access to these types of high-level industry leaders to help build our business."

Black-founded startups in the U.S. received less than 0.5% of the total $140.4 billion in venture funding received by all U.S.-based startups last year, according to Crunchbase data. With funding to Black founders in 2023 totaling $705 million, it marks the first time since 2016 that the figure failed even to reach $1 billion, greatly outpacing the decline in startup funding overall.

"I'm looking forward to working with Clara and her team at BK-XL to help identify and nurture the next generation of diverse startup talent," said Anthony Saleh, General Partner at WndrCo. "As an advisor, I'm excited to witness the ripple effect of our collective efforts as these founders go on to shape industries, communities, and economies.”

Applications for this year's BK-XL cohort will open on April 2, with a close date of May 3. Selected companies will be notified by mid-June and the program is expected to begin in early July and run until mid-September. More information on the timeline and application process is available at www.bk-xl.com.