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Diversity and inclusivity have been trending since protests against systemic racism reached fever pitch this summer. As many companies scrambled to prove their support of Black lives, other entities have continued to shutout Black creativity, ideas, and wealth. Ahead of the new year, The Startup Pill reported on Silicon Valley’s top 25 venture capital firms least likely to invest in founders of color. The information is compiled of data from The Black Founders List, which serves as a running historical record of Black founders and the investors who invested in them. The list names well-known firms that have less than five Black-led investments while boasting thousands of investments and billions in revenue. The Startup Pill says that only one percent of venture-backed companies are led by Black founders. “On a macro level, the lack of diversity in the industry is a problem because it means most of the money flows to types of founders VCs understand — businesses with white men of a...
As of Aug. 31, a total of $87.3 billion in venture capital has gone to founders so far in 2020. However, Black and Latinx founders have received just 2.6 percent of that funding. According to CNBC, a new report from Crunchbase confirms the Black founders are still struggling to raise money for their innovative ideas. Released on Oct. 7, the reports gathered data from over 970 Black and Latinx-founded companies that have raised VC funding since 2015. The report also highlights data from the nonprofit organization BLCK VC that shows 81 percent of all VC firms don’t have a single Black investor. “I think it’s pretty shocking,” Crunchbase data evangelist Gene Teare said. “Hopefully for the industry, this is a wake-up call.” Teare cites racial bias and discrimination within the venture capital space for the rejection founders experience early in the fundraising process. “That early funding is all about you as a founder, your network, and your credibility,” she said. However, with limited...
Even with diversity and inclusion efforts from corporations in recent months, there is still a need for more representation and investment in Black businesses. According to Sifted , Diversity VC and RateMyInvestor conducted a study that found less than 1 percent of VC is invested in Black-owned businesses in the U.S., and things are no better in the U.K. However, Black-owned London-based venture capital firm, Impact X Capital Partners, is raising £ 100 million ($131 million) to invest in Black entrepreneurs in the entertainment, media, tech, health, and digital space reports Shoppe Black . Founding member, Principal & CTO Ezechi Britton told Shoppe Black that it’s time investors put their money where their mouth is. “There is no doubt in our mind that Black founders need more support,” Britton said. “We’re massively over mentored and under funded. There are plenty of people willing to give their time, but not their money.” Britton tells Shoppe Black he noticed the problem when he...