Silicon Valley Investors Visit Claflin University
On Oct. 17, a delegation of elected officials and venture capitalists traveled by bus to [UNCF-member institution] Claflin University‘s Ministers’ Hall to learn how historically black colleges and universities (HBCUs) are preparing students to become the next generation of entrepreneurs and technology professionals.
South Carolina Congressman James Clyburn (D-6th District); Ohio Congressman Tim Ryan (D-13th District); and California Congressman Ro Khanna (D-17th District) were the chief organizers of the “Comeback Cities Tour South,” which visited cities throughout the region and HBCU campuses in North Carolina, South Carolina and Georgia.
According to Michael Morley, a native of Youngstown, Ohio, and a senior advisor to Congressman Ryan, the idea of the tour evolved from a previous project when Morley coordinated a similar trip to cities in the Midwest.
“The venture capitalists were so excited about what they saw and experienced, they wanted to do it again in another region of the country,” Morley said. “Congressman Clyburn suggested they visit cities in his district in South Carolina. He also encouraged Ryan to visit HBCUs to find out more about these institutions and meet some of the talented students on their campuses.”
“We greatly appreciate Congressman Clyburn and Congressman Ryan spearheading the delegation’s visit to Claflin,” said Dr. Karl S. Wright, the University’s provost. “It is very significant that these investors and elected officials now realize the entrepreneurial capacity of Claflin and other HBCUs. The combined efforts of our administrators, faculty, students, and alumni could be the catalyst this region needs for sustainable economic growth.”
Morley pointed out that most of the venture capitalists in the group were from California’s Silicon Valley and others were from New York and Chicago, IL. He said one of the primary purposes of the trip was to bring potential investors from the West Coast to meet with HBCU administrators and students, elected officials, and representatives of local businesses to discuss investment opportunities and the possible strategies for creating jobs in this region.
“Our focus is on meeting with entrepreneurs or aspiring entrepreneurs who have a relationship with HBCUs,” said Roy Bahat, head of Bloomberg Beta, an early-stage venture firm backed by Bloomberg L.P., based in San Francisco, CA. “We met some incredibly promising recent graduates who might be good candidates for some of the companies we work with. Technology has become a global profession and our conversations with Claflin students are the same we hear on an elevator in San Francisco. Literally it’s the same language and the same way of thinking. We are learning that people have different life experiences and we need to take that into account when creating connections with Silicon Valley and schools like Claflin,” Bahat said.
“HBCUs are extraordinary institutions with rich traditions and history. Our goal, as investors, is to look everywhere for viable investments. HBCUs have been overlooked for too long so we see this as a great opportunity.”
“We are learning that people have different life experiences and we need to take that into account when creating connections with Silicon Valley and schools like Claflin.”
The tour organizers believe that HBCUs are valuable economic components in their communities which results in more jobs, stronger growth and more vibrant cities and towns. South Carolina’s eight HBCU’s have a combined economic impact of $463 million on the state’s economy and they have a direct or indirect impact on almost 5,000 jobs statewide. A recent landmark study, HBCUs Make America Strong: The Positive Economic Impact of Historically Black Colleges and Universities, broadly quantifies the economic impact of HBCUs on the nation’s economy and their respective regions. The report, which was commissioned by UNCF’s Frederick D. Patterson Research Institute, placed the economic impact of HBCUs at $14.8 billion annually, which is equivalent to a ranking in the top 200 on the Fortune 500 list of America’s largest corporations. The report also concluded that HBCUs generate 134,090 jobs in total for their local and regional economies. According to the report, Claflin, generates $79 million and provides 835 jobs to contribute to the total economic impact of the local and regional economies. This estimate includes direct spending by Claflin from faculty, staff, academic programs and operations, and by students attending the institution.
“Tim Ryan and I are very good friends and we spend a lot of evenings together,” said Congressman Clyburn. “Several years ago when the steel mills closed, Youngstown, Ohio went through a debilitating economic depression.
Congressman Ryan addressed the problem by starting the ‘Comeback Cities Tour’ for the purpose of bringing venture capitalist from California, New York, and other places to take a look at rural communities. That’s why we brought this group to Orangeburg, and we’re taking the tour to Charlotte, Columbia, and Atlanta so they can see some of the HBCUs in those cities. I am convinced a lot is going to come out of this tour and the conversations they are having on these HBCU campuses.”