The founder of Plug In South LA, Derek Smith, invested in an age-old dream: bringing better economic opportunities to his home community. Returning to South Los Angeles after a stint in NYC, he decided to establish a startup incubator to lift the local entrepreneurial spirits and pave the way for high-paying job prospects.

Smith understood that securing financial support is a daunting task, especially for founders from historically underrepresented groups. According to recent data from Crunchbase, funding for Black founders in 2023 hit a new low, with Black entrepreneurs receiving a mere 0.48% of total venture capital. These hurdles explicate the raison d’être of Plug In South LA, to streamline resources and assist Black and brown founders.

Twelve-week programs are available for entrepreneur training by Plug In South LA. These programs offer invaluable insight into various areas like financial planning, storytelling, and more. The initiative concludes with a demo day for investors.

Smith sees his venture as a way to tap into unutilized talent and support economic growth in areas often overlooked by the startup ecosystem. Smith’s vision transcends the material aims of prosperity and is rooted in the creation of a well-connected network of entrepreneurs.

Among the success stories that sprouted from Plug In South LA is ChargerHelp, a platform to assist field technicians in resolving issues with faulty EV charging stations. Founded by Kameale Terry, who participated in the 2020 accelerator program, ChargerHelp has raised a striking $20 million in funding. Besides the financial boom, the company also has a swelling workforce.

Meanwhile, the incubator is preparing for its fifth cohort, aiming to onboard between 12-15 participants. Other companies, like SwayBrands and ThriveLink, that have progressed through the program have demonstrated impressive development, corroborating Smith’s faith in underrepresented entrepreneurs pulling themselves up by their bootstraps.

In an exciting turn of events, Smith announced that Plug In South LA is switching to an equity-based model from its original free model. A subsidiary fund will contribute to the cohorts, implementing a strategy revolving around equity ownership and further investments.

Source: Plug In South LA helps build diverse startups in a traditionally underserved area.