Disparity in capital access is holding back disadvantaged entrepreneurs.
Torchlight Support Capital (TSC) is an organization that provides funding, guidance, and other support to early-stage impact-creators from socially and economically disadvantaged groups. We are here to support mission-driven individuals and organizations that are overlooked by traditional financing resources.
We are passionate about building a community of founders and professionals that enables knowledge and experience sharing, which are valuable social capital to entrepreneurs in addition to funding resources.
TSC is here to light the path for entrepreneurs.
The Problem
The number of small businesses sought for financing was stable pre-pandemic, but dropped since 2020 – not because people didn’t need funds, but because they were discouraged by the expectation of disapproval from traditional financing sources. Indeed, the percent of founders who received they entirety of their requested funding sharply decreased during the same period, leaving more businesses with a financing shortfall.
Not surprisingly, early-stage minority-owned businesses suffered bigger financing challenges.
While access to capital is a critical issue for minority firms during periods with or without an economic crisis, minority firms have been hit the hardest during the past few cycles.
According to an awarded research project (Sanchez, Mederiros, Huyser) by the Stanford Center on Poverty and Inequality, between 2005 and 2009, hispanic households lost 66% of their wealth and black households lost 53%, while white households lost only 16%.
Similarly, the Kansas City Fed found minority-owned businesses to be most vulnerable during the COVID-19 pandemic.
With another recession lurking around the corner, minority business owners and entrepreneurs must take on the upcoming challenge and prepare for an even tougher environment.
Our Solution
To access existing sources of start-up financing, entrepreneurs are usually burdened with an unrealistic amount of paperwork, extended timelines, and unnecessary covenants.
Rather than a lender or investor, we would like to be your friend and business partner. As a non-profit organization, we are mission driven to help founders succeed.
At TSC We Promise To:
Make the grant application extremely easy
Encourage good ideas
Reward big dreams
TSC Partner Benefits:
Receive initial founders’ grant of up to $5,000
Develop and elevate business strategies and actionable plans
Connect with broader support communities
Grants
We provide grants ranging from $1,000 - 5,000 designed to give you critical early-stage support to implement your vision. Our capital is structured as a 100% grant and is delivered as a lump sum once we have reviewed and approved your application.
Guidance
We have a team of investment professionals and entrepreneurs that are passionate about helping you. We can help you with setting up a business plan, financial projections and analysis, navigating complex contracts, and as a sounding board for your ideas.
Governance
We believe that every successful organization has strong governance. Governance helps align stakeholders and provides a firm foundation to build upon.