The amount of capital raised by black entrepreneurs continues to decline.
The latest Crunchbase numbers show Black founders raised $187 million in the third quarter, a staggering drop from the nearly $1.1 billion they received in the third quarter of 2021 and a significant drop from the $594 million the cohort raised in the second quarter.
Black founders have only 0.12% of the $150.9 billion deployed in Q3.
Within that, black women raised 49% of all capital allocated to black founders in the third quarter, at a rate of about $91.63 million. In any case, to pick up crumbs, it’s good to see that black men and women seem to receive nearly equal amounts this quarter, although the number they’re splitting is appalling.
Honestly there are houses worth more than $187 million. Adam Neumann raised more in one lap than all black founders can be done in fifteen minutes. Adele is worth it $220 million. However, these numbers are not necessarily surprising. australiabusinessblog.com reported that investors often withdraw into their networks amid economic downturns and take fewer risks for minorities.
“When the venture capital industry catches a cold, underrepresented founders get pneumonia.” Tiana Tukes, investor, Colorful Capital
This is perhaps best illustrated by the fact that the capital raised by the black founders in the third quarter is roughly equal to the $180 million allocated to the cohort in the third quarter of 2020. However, the black founders were able to raise that $187 million from just 32 deals, compared to until 2020, when it took 93 deals to reach $180 million.
In total, Black founders have raised just over $2 billion in venture capital this year, down from the staggering $4.72 allocated in the record year of 2021.