Derek Smith, the founder of Plug In South LA, a startup incubator in southern Los Angeles, decided to return home in 2015 to address the lack of economic development he witnessed growing up. His goal was to provide support and guidance to aspiring entrepreneurs in his community, with the hope of bringing higher-paying jobs to the area.
Smith recognized the challenges faced by founders from underrepresented groups in securing funding, especially for Black entrepreneurs. According to Crunchbase data, Black founders received only 0.48% of total venture money in 2023. This disparity fueled Smith’s mission to empower Black and brown entrepreneurs in building successful tech startups and driving economic growth in underserved communities.
Plug In South LA offers a 12-week program where participants receive guidance and mentorship from industry experts. The program culminates in a demo day where entrepreneurs can showcase their businesses to potential investors. Smith aims to tap into the untapped talent in South LA and nurture companies that contribute to job creation and wealth building in marginalized areas.
One success story from the incubator is ChargerHelp, a platform assisting field technicians in repairing EV charging stations. Co-founder Kameale Terry attributes the program to helping her secure a $17.5 million Series A funding. ChargerHelp has since grown to employ close to 45 people.
Smith’s vision extends beyond the incubator, as he aims to cultivate a network of entrepreneurs committed to supporting talent in overlooked communities. To further support startups, Plug In South LA is transitioning to an equity-based model, with plans for a dedicated fund to invest in future cohorts.
Through initiatives like ChargerHelp, SwayBrands, and ThriveLink, Plug In South LA is empowering diverse creators and underserved populations to build successful businesses and make a positive impact on their communities.
