the Data

Despite the extraordinary challenges of 2020, ICA remained focused on our mission to accelerate great businesses through mentoring and investments to close the racial and gender wealth gaps.

Building an economy for all
We served 89 Bay Area businesses in 2020:

  • 86% were owned by women or people of color
  • 51% were owned by women
  • 28% were owned by Black entrepreneurs
  • 24% were owned by Asian / Pacific Islander entrepreneurs
  • 10% were owned by Latino(a) entrepreneurs

Accelerating great companies
Of these companies, 67 received extensive hands-on advising and support through their participation in ICA’s accelerator programs and/or investment portfolio. These companies represented:

  • $87MM in total revenues, with an average revenue of $1.30MM
  • 734 jobs
  • $26MM in total wages paid

The pandemic hits home
In March, when the shelter-in-place order was enacted in the Bay Area, it affected ICA-supported businesses across the board:

  • 34% closed temporarily
  • 23% reduced operations
  • 56% cut employee hours
  • 44% furloughed workers
  • 35% permanently laid off employees
  • 29% lowered wages

A rapid response
Launched two weeks after shelter-in-place orders went into effect, the Rapid Response Liquidity Fund addresses entrepreneurs’ dire funding needs, with terms that reflect the unprecedented urgency of the moment:

  • 0% interest loans of up to $150,000
  • No payments required for 12 months
  • No credit checks or collateral

Filling the gap
11 days after ICA launched the Rapid Response Liquidity Fund, entrepreneurs began to receive our funding:

  • ICA deployed $1.40MM in emergency loans to 30 ICA entrepreneurs, with an average loan size of $47K
  • 86% of recipients indicated that funding met their emergency capital needs
  • ICA deployed funding to companies within 14 days of receiving a completed application, on average
  • 90% of recipients were women and/or people of color

Building Resilience
We also adapted our coaching and capital offerings, and created new programs to support our entrepreneurs:

  • The Resilience Lab Accelerator launched in June and served 24 companies, 96% of which are run by people of color and/or women.
  • ICA served an additional 23 entrepreneurs through workshops and office hours dedicated to addressing the impact of the pandemic.
  • In total, ICA’s emergency-response initiatives helped 72 companies navigate the crisis.

Job losses were high
Many ICA-supported companies had to downsize their workforces:

  • Investment portfolio companies saw job losses of 23%
  • Accelerator companies saw job losses of 41%
  • Resilience Lab Accelerator companies saw job losses of 50%

But some jobs were hit harder
Jobs losses varied by industry, and part-time jobs represented the bulk of the cuts.

  • Overall, jobs declined by 34%, led by a loss of part-time jobs in the heavily impacted catering industry
  • Catering businesses accounted for 63% of jobs lost and all food-related businesses accounted for 82%
  • Part-time jobs comprised 79% of all jobs lost

A living wage
But while part-time jobs did decline, ICA-supported companies continued to pay a living wage to their workers:

  • The average wage at ICA companies was $26.55—19% higher than the Living Wage defined by the MIT Living Wage calculator for Alameda County
  • ICA companies increased average wages by 4%.

Adapting to grow
Job and revenue losses were to be expected. But the entrepreneurs ICA supports are resilient, resourceful, and tenacious. They changed course and met the challenges head on:

  • 72% added new products
  • 53% increased online sales
  • 42% launched new customer acquisition channels

Continued growth
And with ICA’s support, a number of companies continued to raise growth capital:

  • Accelerator and investment portfolio companies raised $15.22MM in new investments, excluding any emergency relief funding

ICA's support makes a difference
The challenges of last year inevitably took a toll on our community. However, the impact of the crisis varied, and companies with a longer working relationship with ICA tended to fare better:

  • Companies in ICA’s investment portfolio increased revenues by 14% with average revenues of $4.07MM
  • Accelerator companies increased revenues by 8% with average revenues of $1.11MM
  • Companies that sought emergency assistance via the Resilience Lab Accelerator—71% of which were engaging with ICA for the first time—saw revenue declines of 27%
  • Companies that received Rapid Response funding, 59% of which were engaging with ICA for the first time, saw a decline of 4% in revenues

13 The road ahead
While it is too soon to measure the long-term impact of ICA’s support, here’s what we know so far:

  • All companies that received emergency support from ICA stayed open in 2020
  • In 2021, companies are hiring again and overall jobs are up more than 2%
  • 94% of the companies that ICA has served since since 2016 are still in business, with only one closure due to the COVID-19 pandemic
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