Comcast Promises $20MM Venture Fund for Minority Digital Owners

Comcast recently announced that it would put it’s money where it’s mouth is and allocate $20 million to a venture fund targeted to minority digital entreprenuers.

Coincidently,  this move comes in the midst of Comcast seeking FCC approval of their pending merger with NBC Universal (NYSE: GE).  Comcast (NSDQ: CMCSA) promised U.S. Rep. Bobby Rush in writing that it will establish a $20 million venture capital fund for minority entrepreneurs to develop “new media content and applications” when the deal closes. The new fund would be part of Comcast Interactive Capital. According to a letter to Rush, timed for Thursday’s congressional hearing in Chicago about the merger, the fund would “facilitate early stage financing of minority businesses.”

Comcast EVP David Cohen told Rush in the letter released by the company that there would be more details about the fund in the fall. The focus of the Chicago field hearing for the Subcommittee on Communications, Technology, and the Internet is “Comcast and NBC Universal: Who Benefits?”

Cohen’s letter also lists:

• Comcast’s promise to expand on its previous diversity pledges, especially when it comes to African-Americans
• A planned minimum of 10 new indie linear digital networks with African American majority ownership
• Training and mentoring programs for minority students, including African Americans
• A commitment to sale KWHY-TV in L.A. to a qualified minority owner

The National Journal reported,

the FCC has scheduled a July 13 public forum in the Windy City on the transaction, being reviewed by the agency and Justice Department.

So why is the Second City the first destination for both the commission and Congress? Comcast is the dominant cable provider in the market, owns a regional sports network there and would own Chicago’s NBC affiliate if the deal is approved. Plus, it’s a short airplane hop away from DC.

Yet it was in D.C. that a room full of minority digital owners convened at Black Web Media’s New Media Entrepreneurship Conference and discussed venture funding in our closing session. One of the key points brought out during the session is that increased venture funding in the media space would increase quality digital programming for and by blacks. And it will aide in the growth of small digital companies owned by minorities, specifically African Americans and allow us to develop properties that are competitive in the digital media space.