Bitwise Industries Announces $80M Raise Fueling Southside Chicago Expansion
New funds will drive company growth among current and new locations, developing Salesforce managed services, DocuSign and Digital Product Development offerings with a representative workforce
FRESNO, Calif., Feb. 28, 2023 /PRNewswire/ -- Today, Bitwise Industries (www.bitwiseindustries.com) announces an $80M investment led by Kapor Center and Motley Fool with participation from the Growth Equity business within Goldman Sachs Asset Management and Citibank. This latest raise from notable institutions will drive economic transformation in the cities Bitwise serves through its Salesforce managed services, DocuSign and Digital Product Development offerings. In addition, Bitwise is announcing its expansion to Chicago's South Side. The Comer Science & Education Foundation has been a critical partner in this expansion resulting in meaningful connections that will support Bitwise's operations and mission. This approach has delivered business value in the form of digital transformation nationwide resulting in unprecedented company growth despite global economic instability.
"This latest raise, led by a group of distinguished investors, acknowledges the role technology plays in driving economic impact in previously underserved communities, validates our model and makes it possible for us to roll out our proven approach into other parts of the country," said Jake Soberal, Bitwise Industries co-CEO and co-founder. "Bitwise has been an agent of transformation for cities and people alike, delivering unmatched results for the tech industry, businesses and the communities we serve."
Bitwise Industries has helped support the creation of over 15,000 jobs in just one of its cities. This accounts for over a-quarter-of-a-billion-dollars in aggregated wages, mostly going to women and people of color, and the growth of the city's GDP by over 1% per year. Bitwise Industries has also renovated over 1M square feet in previously vacant, blighted spaces within underserved downtown areas across the country, creating vibrant spaces for innovation and commerce. This has supported the skilling of over 10,000 individuals, from underestimated communities who otherwise might not have considered the tech industry as a place for them. Eighty percent of those have gone on to technical employment after completion of the program.
"Goldman Sachs believes that Bitwise has shown a strong track record in training and upskilling talent to successfully find placement in the highly competitive technology labor market," said Hillel Moerman, a partner in the Growth Equity business within Goldman Sachs Asset Management. "Filling the talent gaps is not only pertinent for the sector, but also key to creating economic opportunity for those in underserved communities and we are excited to support Bitwise in its continued growth."
The investment from Goldman Sachs Asset Management is part of the firm's One Million Black Women initiative, which seeks to help narrow opportunity gaps facing Black women across key pillars including, Job Creation and Workforce Advancement.
"The Kapor Center, as a lead investor in this round, and Kapor Capital, as a continuing investor, recognize Bitwise's major accomplishments in closing gaps of participation in the tech ecosystem and transforming the economies of underestimated cities across the nation, now expanding to the South Side of Chicago," said Bitwise Board member, co-Chair of the Kapor Center, and founding Partner of Kapor Capital, Mitch Kapor.
A 6K-square-foot, South Chicago Avenue building will serve as a temporary home to Bitwise Industries' local operation while a permanent space is finalized. By leveraging the existing facility, the company will renovate the space to quickly deploy its community-focused investments. The building, located in Chicago's Greater Grand Crossing community, will operate in partnership with nearby Comer Education Campus, which consists of the Gary Comer Youth Center, a college prep high school and middle school, an urban farm, and an active affordable housing initiative.
"Bitwise has a track record of removing barriers that have prevented talented individuals from securing quality jobs in one of the fastest growing industries in the world," said Greg Mooney, President, Comer Science & Education Foundation. "These are high-growth, high-wage jobs that enable companies, schools, and local residents to succeed in the digital economy. We are excited to be partnering with national leaders, such as Bitwise Industries, to help Chicago thrive."
The new influx of capital will allow Bitwise Industries to continue its work creating spaces that unite communities, while spurring economic and business growth in underserved communities. This work is possible through the investment of mission aligned partners such as Comer, P33 and more. For more information about Bitwise Industries, please visit our website at: www.bitwiseindustries.com
About Bitwise Industries
Bitwise Industries, a transformative technology company, creates scalable digital solutions, offering services in Salesforce, DocuSign, and Digital Product Development—using a representative workforce in underestimated cities. Bitwise is a nationwide catalyst towards economic transformation, has a proven record of year-over-year growth and has been nationally recognized for its work. Bitwise has pioneered a movement in the industry regarding diversity, equity and inclusion reflected in the faces, lives, and humans in those we employ, those in which we partner, and communities we mean to lift up. To learn more about Bitwise Industries, check out www.bitwiseindustries.com.
About Goldman Sachs Asset Management Growth Equity
Bringing together traditional and alternative investments, Goldman Sachs Asset Management provides clients around the world with a dedicated partnership and focus on long-term performance. As the primary investing area within Goldman Sachs (NYSE: GS), we deliver investment and advisory services for the world's leading institutions, financial advisors and individuals, drawing from our deeply connected global network and tailored expert insights, across every region and market—overseeing more than $2 trillion in assets under supervision worldwide as of September 30, 2022. Driven by a passion for our clients' performance, we seek to build long-term relationships based on conviction, sustainable outcomes, and shared success over time. Goldman Sachs Asset Management invests in the full spectrum of alternatives, including private equity, growth equity, private credit, real estate and infrastructure. Since 2003 the Growth Equity business within Goldman Sachs Asset Management comprising more than 75 individuals has invested over $13 billion in companies led by visionary founders and CEOs. We focus exclusively on investments in growth stage and technology-driven companies spanning multiple industries, including enterprise technology, financial technology, consumer and healthcare. Follow us on LinkedIn.
About Goldman Sachs' One Million Black Women
In partnership with Black-women-led organizations, financial institutions and other partners, Goldman Sachs has committed $10 billion in direct investment capital and $100 million in philanthropic capital over the next decade to address the dual disproportionate gender and racial biases that Black women have faced for generations, which have only been exacerbated by the pandemic. The initiative, One Million Black Women, is named for and guided by the goal of impacting the lives of at least one million Black women by 2030. Goldman Sachs' research Black Womenomics has shown that sustained investments in Black women will catalyze economic growth, making for not only a fairer, but also a richer society.
SOURCE Bitwise Industries
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