Morgan Stanley has selected AMAKA and four other start-ups led by women and ethnic minority founders to participate in the inaugural Multicultural Innovation Lab (MCIL) cohort in Europe, Middle East and Africa (EMEA).

In a press release released on Tuesday, September 6, the leading global financial services firm disclosed that through the Lab it would make an aggregate £1 million investment in the selected women-led startups.

The EMEA programme will run from September 2022 to February 2023. During the five-month period, the five women CEOs chosen from over 1,200 applications will benefit from the close support of Morgan Stanley’s global ecosystem of internal and external partners which will provide a wide range of mentorship opportunities and business-growth resources.

Sanghamitra Karra, Managing Director and EMEA Head of the Multicultural Client Strategy Group, stated that the CEOs selected for the programme are highly groundbreaking women.

She said: “The five were selected on the merits of their innovative offerings and significant investment potential. Their intersectional diversity across race and gender was seen as a key factor driving greater innovation and resilience potential.”

Spotlighted in Morgan Stanley’s Times Square billboard, AMAKA, alongside the four other corporations selected for the inaugural EMEA cohort include imagi, Kami, Perse, and Wearisma. The early-stage companies are developing key solutions in a wide range of areas such as education, climate change, technology and wellness.

Morgan Stanley explained that the first cohort commenced on September 6 in a hybrid environment, using online video platforms and in-person events to facilitate the Lab curriculum, and enhance connectivity and foster community.

More about the Multicultural Innovation Lab

Morgan Stanley’s Multicultural Innovation Lab (MCIL) is a startup accelerator programme that promotes financial inclusion and provides access to capital for early-stage technology and technology-enabled companies led by women and multicultural entrepreneurs.

Originally launched in the US in 2017, the programme was born from the need to create a more inclusive investment landscape for women and diverse founders.

The funding gap in intersectional Venture Capital (VC) has been a concern among diverse founders who have advocated for measures to address the issue.

Adaora Oramah, founder and CEO and Founder of AMAKA, told sifted that decision-makers in the VC industry need to understand the importance of intersectionality.

“It’s not just the funds that say ‘oh we really believe in diversity’,” she says. “Who are the people in power in those impact funds? Who will be able to make those executive decisions? Who will understand the importance of intersectionality?

’’Similarly, Dora Palfi, co-founder and CEO of coding platform Imagi, said intersectionality in investment means diversifying who has positions of power in funds. She says, “One of the most important factors that could improve the fundraising experience of diverse founders is also diversifying the VC industry,” she says. “That is more diversity among the decision-makers, and even more funds started and led by people from diverse backgrounds.”