How Plug In South LA Empowers Diverse Startups in Underserved Communities
Bridging the Opportunity Gap in South Los Angeles
Derek Smith, founder of Plug In Ventures, returned to his roots in Southern Los Angeles in 2014 with a mission: to foster economic development through entrepreneurship. After witnessing firsthand the lack of resources in his community, Smith launched Plug In South LA—a startup incubator designed to support underrepresented founders in building scalable businesses.
The Stark Reality of Funding Disparities
Black founders face significant hurdles in securing venture capital:
- Received just 0.48% of total VC funding in 2023 (\(661 million out of \)136 billion)
- Funding has declined for three consecutive years
- Systemic barriers persist in accessing capital and networks
“We want to support founders who can build businesses that scale broadly,” Smith told TechCrunch. His incubator provides the tools and guidance needed to overcome these challenges.
The Plug In South LA Program Structure
The 12-week accelerator program offers:
- Weekly workshops (5 hours/week commitment)
- Industry-specific mentorship
- Pitch deck refinement
- Storytelling training
- Financial planning guidance
- Investor demo day
Creating Economic Impact Through Entrepreneurship
Smith’s vision extends beyond individual startups:
- Fosters job creation in underserved communities
- Builds local entrepreneurial networks
- Develops homegrown talent
“The entrepreneurs have to do this work,” Smith emphasizes. “We need founders aligned with this broader vision of community development.”
Success Stories: From Incubator to Impact
Notable alumni include:
ChargerHelp
- EV charging station maintenance platform
- Raised $20M+ to date
- Grew from 12 to 45 employees
- CEO Kameale Terry credits the program with helping secure $17.5M Series A
Other Portfolio Standouts
- SwayBrand: Connects diverse creators with brands ($2M raised)
- ThriveLink: AI platform for underserved patients to access social services
The Power of Shared Experience
Participants gain access to:
- A growing network of diverse founders
- Peer support from those with similar lived experiences
- Ongoing mentorship beyond the program
“I can find folks who understand my journey,” says Terry. “It’s powerful to both give and receive help.”
Evolving the Model for Greater Impact
Recent program developments:
- Transitioning from free to equity-based model
- Launching adjacent investment fund
- Taking 5% equity in cohort companies
- Providing follow-on funding opportunities
Building a More Inclusive Startup Ecosystem
Plug In South LA demonstrates how targeted support can:
- Unlock untapped entrepreneurial potential
- Create economic opportunities in overlooked communities
- Diversify the tech industry from the ground up
As Smith’s initiative prepares for its fifth cohort, it continues to prove that when given the right resources, founders from all backgrounds can build successful, impactful companies.
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