Black founders still raised just 1% of all venture capital funds in 2022 australiabusinessblog.com
Some. Good. News.
The latest data from Crunchbase shows that the founders of Black Startups in the United States have raised approximately $264 million of the total $33.6 billion in venture capital committed in the fourth quarter of 2022. That’s an increase from the $178 million — or 0.43% — the group raised in the third quarter.
In total, American black founders raised an estimated $2.254 billion of the $215.9 billion in US venture capital allocated last year. That’s about 1%, a slight decrease from the 1.3% raised in 2021. Let’s break this down.
“As the macroeconomic environment collapsed, the investors who preached D&I disappeared, and their implicit bias became more apparent.” De’Havia Stewart, investor, BLCK VC
So black founders in the US picked up about 0.79% of venture capital funds raised in the fourth quarter of 2022. There was a fear that investors would retreat to their old-fashioned networks during a bear market, and the total amount of funding Black founders received last year is nearly half the amount they raised in 2021 — a record $4, 34 billion (of about $330 billion in the US and $681 billion worldwide).
Despite the record-breaking 2021, that amount equates to just 1.3% of all capital raised in the US alone. Whatever happens, it seems that the actual percentage of money raised for this cohort is barely moving, even as more and more capital floods the markets.
Ty Callowaythe founder of fintech Coolertold australiabusinessblog.com it’s embarrassing as a black founder to always be associated with negative stats, especially when someone is trying to raise money.
