Is The Black VC Pipeline Drying Up? Report Reveals Fewer New Entrants And Promotions
Fewer Black professionals are entering venture capital, and even fewer are rising through the ranks, a new report has found.
The Black Venture Report 2025
On Juneteenth, BLCK VC released the third edition of its Black Venture report. Its first edition was promoted by a question between the co-founders: Where are we, really? That question expanded into a critical report that highlights the link between Black representation and power in venture capital.
“Our research continues to expose a stark truth: Black investors remain severely underrepresented, especially in senior roles,” it says in the report. “As of 2022, venture capital professionals are overwhelmingly white and male. White men account for 58% of all investors and control 93% of VC assets, while non-white and/or female investors manage the remaining 71%”
As DEI initiatives are being removed from various companies and institutions, it’s essential to examine what can be done to empower and build wealth and capital in Black communities.
Key highlights from the report
A shrinking Black tech talent pipeline
Black professionals continue to face stark underrepresentation in venture capital, especially in leadership roles. There are also fewer early-career Black professionals entering the field, and just 17% of respondents reported receiving a promotion in the past year, a sharp drop from 28% in previous years. In keeping with this trend, fewer than 1 in 4 (24%) believed internal promotion was their most viable path forward, down from 57% in previous years.
The importance of mentorship
The report found that senior interviewees consistently emphasized the importance of mentorship, both from Black and non-Black mentors. However, the representation of Black professionals in front-office investment roles remains significantly low. The underrepresentation has long-lasting effects on the distribution of wealth across different communities.
Ongoing gender disparities
Examining figures from 2022 to 2025 reveals a consistent pattern in which men significantly outnumber women in the venture capital sector. While this imbalance exists, Black women continue to thrive in other areas.
In 2025, Black women were more likely than men to report having been recently promoted (19% vs. 16%) and were also significantly more likely to report having a Black mentor in venture capital, now 50% compared to just 33% of men. These findings highlight that although Black women succeed in specific areas, they are still facing structural barriers.
Black investors are adopting AI
Black investors are increasingly integrating generative AI into their investment workflows, with the highest usage being in due diligence (51%) and competitive analysis (49%).
More firms do not have any DEI efforts
Over 60% of respondents shared that their firm or fund does not currently have any active initiatives or programs aimed at advancing diversity among investors and founders. Only 31% of those surveyed indicated that such initiatives are in place.
“Based on strong recommendations from mentors in the field, we removed all language from our website that explicitly states our support for Black and BIPOC entrepreneurs. That messaging is no longer visible, although all the images on our site still feature people of color. The only remaining text that hints at our focus is a line encouraging women of color to apply,” an anonymous person said in the report.
Image: DeNoise
