Originally from South Los Angeles, Derek Smith recognized the lack of economic development in his community and decided to establish Plug In South LA in 2015 after working in NYC. His primary goal was to assist aspiring entrepreneurs in navigating the challenges of starting a startup, with the hope of generating higher-paying job opportunities in the area.
Smith understood the additional hurdles faced by founders from underrepresented groups, particularly Black entrepreneurs, in securing funding. Recent data from Crunchbase revealed that funding for Black founders hit a record low in 2023, accounting for just 0.48% of total venture capital allocated.
The pervasive institutional barriers prompted Smith to focus on supporting Black and brown entrepreneurs through Plug In South LA, facilitating their journey in building successful tech startups and contributing to wealth creation within marginalized startup ecosystems.
Smith emphasized the importance of enabling these founders to develop businesses with broad scalability potential, ultimately fostering economic growth and job creation in overlooked communities.
Empowering Entrepreneurs Through Incubation
Plug In South LA offers a 12-week program for participants, involving weekly workshops, industry-specific guidance, and mentorship from tech professionals. The program culminates in a demo day where entrepreneurs can pitch their ideas to potential investors.
A Vision for Community Empowerment
Smith envisions a wealth of untapped talent in regions like South LA and aims to cultivate these talents through startup incubation. By nurturing successful businesses that prioritize giving back to their communities, he hopes to establish a network of entrepreneurs committed to fostering economic development locally.
Smith emphasized the role of entrepreneurs in driving change, highlighting the need for self-reliance and community support as opposed to external interventions.
Supporting Diverse Startup Ecosystems
Vaughn Blake, a partner at Blue Bear Ventures, commended Smith’s initiative with Plug In South LA and emphasized the importance of organizations like his in providing mentorship and support for aspiring entrepreneurs in Los Angeles.