A report from The Alliance for Entrepreneurial Equity has found a troubling decline in venture capital and other forms of funding for Black-owned businesses. While the number of Black-owned businesses are growing, they  are severely underrepresented compared to their population making up only 2.5% of all businesses. In recent years, Black-owned businesses have faced challenges in securing funding, a trend that blocks their growth and reflects issues within the American financial landscape. The Alliance for Entrepreneurial Equity’s latest report, a collaboration between the National Urban League and Third Way, illuminates
Techish host Michael interviews VC and founder Andy Ayim! About Andy Ayim: Former product leader, entrepreneur, angel investor. Ex Managing Director of Backstage Capital London [founded by Arlan Hamilton] Listen on Spotify or Apple podcast also. Watch On YouTube:
Through venture capital, Ohio has gave $86 million to early-stage tech companies in women – minority-owned or underserved areas. The money comes from the federally funded State Small Business Credit Initiative Venture Capital program and will be invested in 11 professionally managed funds. Ohio Funding These funds are aimed at investing in companies focused on things such as health care, manufacturing and food technologies. The funds were eligible to apply for between $5 million and $10 million. “These awards will help spur innovation by fostering a diverse entrepreneurial ecosystem and accelerating the
Verod-Kepple Africa Ventures (VKAV) has announced the closure of its first fund at $60 million. A Pan-African Vision with Global Backing VKAV is a collaborative effort between West African private equity firm Verod Capital Management and Tokyo-based venture capital firm Kepple Africa Ventures. Notably, the fund includes backing from Japanese powerhouses such as SBI Holdings, Toyota Tsusho Corporation, and Sumitomo Mitsui Trust Bank. Nigeria’s SCM Capital and other institutional investors from Japan, including Taiyo Holdings also contributed. VKAV’s investment strategy focuses on digital infrastructure builders, efficiency solvers, and market creators.
Recent data from Crunchbase reveals that there has been a disproportionate decline in venture funding for Black-founded startups in the United States. A Fall Below The $1B Threshold Last year, these startups secured only $705 million in funding, marking the first time since 2016 that the figure fell below the $1 billion threshold. This sharp decline of 71% in funding to Black-founded companies starkly contrasts with the 37% decrease in overall U.S. startup funding, highlighting a widening gap in investment allocation. This drop signifies a declining share of Black-founded startups
Startup SocialCrowd has announced the securing a $1.6 million pre-seed funding round to expand its team and focus on customer acquisition. SocialCrowd Founders Raphael Akinsipe and Paul Doran are on a mission to optimize the world’s labor force through data and automation. The platform automatically tracks employee progress toward goals, reminds them of the work they have left, and rewards them instantly. Key to SocialCrowd’s appeal is its real-time tracking capability, which integrates seamlessly with existing productivity apps. “Many of our customers have large blue-collar shift teams; their staff was
Beta Boom, a US-based venture capital firm, has announced the closure of its $14.5 million Fund II. Founded in 2017 by Kimmy and Sergio Paluch, Beta Boom is committed to bridging the funding gap experienced by underrepresented founders, particularly in areas beyond the major tech hubs. Beta Boom’s Fund II Beta Boom’s Fund II, raised by the duo, alongside Ally Bank, Melinda French Gates’ Pivotal Ventures, and Bank of America, signifies a pivotal shift in the venture capital landscape. The fund aims to support early-stage startups that cater to the
Fearless Fund has urged a US appeals court to allow its grant program to resume, which awards funding to businesses run by Black women. The Fearless Fund Story To Date The American Alliance for Equal Rights (AAER) attacked Fearless Fund in August 2023 after it claimed the fund’s grant was racially discriminatory. The AAER, founded by Edward Blum, who was behind the Supreme Court’s affirmative action ruling, accused the grant program of violating Section 1081 of the Civil Rights Act of 1886. The US District, Thomas V. Thrash, initially ruled that Fearless Fund
Venture capital (VC) funding for Black entrepreneurs in the US has been decreasing since a peak following George Floyd’s murder in 2020. In 2023, Black founders in the US got only 0.48% of all venture dollars, about $661 million out of $136 billion, TechCrunch reports. This is the lowest in recent years. Peak funding in 2021 In 2020, Black founders received 0.6% of venture funding. By the first half of 2021, funding to Black entrepreneurs in the US reached nearly $1.8 billion, a fourfold increase compared to the same time
From dealmakers at significant funds to founding partners of new firms and industry-changing nonprofits, Forbes 30 Under 30 listed young leaders helping to shape venture capital’s future. The list spotlights funders and founders aged 29 or younger as of December 31, 2023. We have compiled a list of some people of color founders who are helping the venture capital industry. Sesana Allen – Associate Investor, Smash Capital Allen is an investor at Smash Capital, a late-stage venture firm backed by former Disney executives and investors from Insight Partners. She sourced the firm’s investment in
