Lupe Fiasco Starts A Fund To Help Local Businesses In Poor Neighborhoods

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Lupe Fiasco Talks His Quest To Find The Next $100 Million Diamond In The Rough

Many of the neighborhoods have a residential population of 75 percent African-American and 20 percent Latino. As of now, the project will launch on Nov. 13, with one location in Brownsville, Brooklyn, but according to Lupe, “Brownsville is just the beginning.” In the feature, Eisnor says it’s important that this project is seen as more than philanthropic work, however.

“It’s very important to me that this is not philanthropy, that we have real economic engines and real wealth coming to these neighborhoods. If one success comes out of this, then other investors will take it seriously. We want to be the on-ramp to something more sustainable,” she said.

In terms of “real wealth,” they are looking to create $100 million out of the funding project in over a dozen neighborhoods by 2016. And while that’s a large sum of money for these underprivileged areas, the contestants are also expected to earn something from the experience. They’ll compete for $5,000 to turn their winning ideas into prototypes and will have access to mentoring programs and free technology services.

Inner-city neighborhoods might be the unlikely spot to find entrepreneurs, but according to Fiasco and Eisnor, unlikely places have great, hidden talent. And for the haters and non-believers Eisnor says, “So? You don’t have to believe it. We’ll prove it. I’d also say that some of the best companies are from people who didn’t get to finish their education. Being an entrepreneur is more about being stubborn, tenacious, hard-working, and focused, rather than having any specific skill set.”

Lupe Fiasco Takes $1 Million Chance On Inner-City Innovators
 

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There are two central innovations in the Neighborhood Start Fund. The first is to look for ideas in overlooked neighborhoods. The second is a financial mechanism designed to redirect profits from a successful Brownsville startup (or a Compton startup, or Anacostia startup) right back into the economy of Brownsville (or Compton, or Anacostia). "We’re putting half the profits back into the neighborhood," in the form of further local investments, says Eisnor. It’s a commitment legally baked into the terms of the fund she and Fiasco have set up. "That’s the flywheel."

Eisnor says that the fund is emphatically not a philanthropic venture. "It’s very important to me that this is not philanthropy, that we have real economic engines and real wealth coming to these neighborhoods," she says. "If one success comes out of this, then other investors will take it seriously. We want to be the on-ramp to something more sustainable."

Lupe Fiasco And A Waze Exec Make A Million-Dollar Bet On Inner-City Innovators
 
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