Let’s be honest: The problem is never with the lack of money.
Last week, TechCrunch report that Black Founders in the U.S. Grow 1% out of $215.9 billion in venture capital allocated last year. Not to be confused with the 1.3% gain in 2021, the 0.8% gain they received in 2020, the 1% gain they received in 2019, or the 1.1% gain in both 2018 and 2017 , according to Crunchbase data.
In case it’s not clear why these numbers are so dire, it’s worth noting that black Americans make up more than 13% population.
Every time these numbers are released, there are always a few people asking the same question: Where do we go from here? Is the next step looking at alternative funding or is it still on the battlefield, ready to fight?
It’s amazing that, always seeking equality, seclusion has always been a safe place in America. Separate school, separate neighborhood, separate hair care aisle, separate investment fund.
Brandon Brooksa founding partner at adventure is overlookedsays it’s time to get creative with funding and points to Small Business Development Centers and grant programs as a way to get through.
James Oliverapp co-founder Kabila, co-signed that it’s time for Black founders to be more careful than ever to get funding. “The period,” he told TechCrunch.
Oliver, who is based in Atlanta, is leveraging relationships to raise pre-seed and angel rounds by tapping local resources, such as the Atlanta Tech Village, while also mobilizing a “founders ring,” in which other founders invest in his company.
“Being a Black founder raising money right now is often bad,” he continued, adding that he once had an investor fund early-stage companies. The first paragraph ignored his idea because he didn’t have a product built yet. (Usually, these investors support ideas, not products.) “When you have your back against the wall, that’s when you find out who you are. Make the most of your relationships, prioritize others, this opens up possibilities for you and let’s get to work, friends.”
