Why underestimated entrepreneurs are critical to America’s competitiveness
Ten years ago, Plug In Ventures began with a simple but urgent belief: innovation cannot thrive if entire communities are locked out of the process. At the time, venture capital funding was already inequitable — with less than 2% of dollars reaching Black and Latinx founders — and today, that number hasn’t moved nearly enough.
Meanwhile, artificial intelligence is reshaping industries, climate innovation is accelerating, and new technologies are redefining how we live and work. The stakes are too high to leave underrepresented voices on the sidelines.
That’s why we started Plug In Ventures in South Los Angeles, a community with the same vibrancy and resilience I’d seen in places like Southwest Atlanta, Bed-Stuy, and South London. We knew that without intentional investment, innovation would bypass these neighborhoods.
So we built Plug In with four pillars in mind: space, programs, capital, and economic impact.
A Decade of Building an Inclusive Tech Ecosystem
What began in 2015 as grassroots community workshops on venture and entrepreneurship grew into a no-equity, no-capital accelerator by 2019 — a model intentionally designed to lower barriers for founders historically excluded from venture networks. That same year, the momentum of this work took new shape through Urban Tech Connect, which amplified our impact by convening more than 700 founders, investors, and ecosystem leaders in Los Angeles.
When the pandemic hit in 2020, many accelerators closed their doors. Plug In went in the opposite direction — we took all programming online, expanding access nationwide and proving that inclusive ecosystems could withstand shocks. In 2023, we joined the Accelerate Hub to deepen support for Black and Brown founders in tech, expanded to New York and Atlanta, and began preparing new non-dilutive capital programs for founders in South LA.
“Innovation isn’t just about technology — it’s about who gets the opportunity to create it.”
Over the past decade, Plug In Ventures has supported 1,000+ startups, fueled deal flow for emerging VCs, enabled $40M+ in founder funding, and built trusted partnerships with companies like Verizon, Nike, Los Angeles County, 2nd District, California Health Care Foundation, and more.
Our founders are solving problems across fintech, healthtech, climate, and digital media — proving that underestimated entrepreneurs are not only investable but essential to the innovation economy.
Championing Inclusive Innovation
Why does this matter? Because inclusive innovation isn’t just a moral imperative — it’s a matter of national competitiveness. As policymakers debate AI regulation, climate policy, and digital equity, diverse founders are already building the solutions the country needs.
I think of alumni who have gone on to raise millions in venture capital, or who are reshaping industries from media to wellness to government technology. Their successes are proof that when you expand access, the return on investment is not just financial — it’s generational.
Beyond Capital: Building Bridges That Last
Plug In’s work has always been about more than cutting checks. Through initiatives like our Accelerator program, which connects startups with corporations, resource providers, capital, and government, we’ve built strong bridges between founders and institutions.
These connections matter now more than ever, as debates around AI, climate innovation, and economic equity dominate the national agenda.
Our role is to make sure that the next generation of entrepreneurs — particularly those from underestimated communities — don’t just watch these conversations from the outside. They shape them.
The Next 10 Years: From Milestones to Moonshots
Looking forward, our goals are ambitious and urgent. We are scaling equity investments into startups, expanding our reach nationally while staying rooted in Los Angeles, and reimagining accelerator programs to meet the needs of founders at every stage.
Our moonshot is simple but bold: ensure that diverse founders are leading in the AI era, the climate tech revolution, fintech, and digital health.
For a decade, Plug In Ventures has consistently done more with less, stretching limited resources to deliver outsized impact for underestimated founders. As we chart the next chapter, we remain focused on building the momentum needed to translate vision into reality and laying the groundwork for the larger investments required to bring our full mission to life.
If the past ten years have proven anything, it’s that lasting change doesn’t come from waiting for the system to shift — it comes from reimagining the system itself and proving what’s possible even with modest means.
“Lasting change doesn’t come from waiting for the system to shift — it comes from reimagining the system itself.”
Closing Reflection
Ten years in, the lessons are clear. What some once dismissed as unrealistic — creating tech spaces in South LA, offering capital without taking equity, and building long-term programs for underestimated founders — is now part of an ecosystem with real roots and momentum.
We’ve proven that skepticism can be met with persistence, and that real change comes not from quick wins but from infrastructure built to last.
But this work has never been ours alone. I’m deeply proud of and grateful to the philanthropists, VCs, corporations, investors, and founders who have invested in underestimated entrepreneurs. We’re equally thankful to the countless mentors and VCs who have given their time to guide founders through their early stages — and often their very first startups.
Plug In’s impact is just one part of a broader movement, powered by the contributions of many across the ecosystem. I am bullish not just on Los Angeles’s tech boom and the role its people will play in positioning LA as a power tech hub, but also on other places like it — including Southwest Atlanta, East New York, Bed-Stuy, and the Brixtons of the world.
Over the years, I’ve seen how our work has encouraged others to rethink philanthropy and reimagine what it means to invest in communities too often overlooked. For those who believed, partnered, invested, or simply showed up: you were the fuel behind this mission.
Innovation is not just about technology. It’s about who gets the opportunity to innovate and who gets to pick who innovates. Plug In Ventures was built to widen that circle — and as we look ahead, we invite founders, investors, partners, and policymakers to join us in aiming higher.
The next decade isn’t just about milestones. It’s about moonshots.
Derek Smith is the Founder & CEO of Plug In Ventures.