Black Founders: Making Inroads in Venture Capital in 2022

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Black startup founders in the U.S. raised $264M out of the total $33.6B venture capital allocated in Q4 2022, an increase from the prior quarter’s 0.43% ($178M).

In 2021, U.S. Black founders raised an estimated $2.254 billion out of the total venture capital allocated in the U.S.: $215.9 billion (1%). This marks a slight decrease from 1.3% in 2020, highlighting the need for further progress and investment into these communities and entrepreneurs alike

“When the macroeconomic environment tumbled, the investors that were preaching D&I disappeared, and their implicit bias became more apparent.” De’Havia Stewart, an investor at BLCK VC

Black founders in the U.S. secured 0.79% of venture capital funds raised in Q4 2022, despite fears that investors would retreat to their old networks during a bear market. This amount is nearly half the record-breaking $4.340 billion Black founders raised out of $330 billion domestically and $681 billion globally in 2021.

Despite 2021’s record-breaking capital raise, only 1.3% of all funds raised in the U.S. went to this cohort – a figure that barely budges despite increased investment activity across markets.

Tye Calloway, founder of fintech Cooler, told TechGround it’s “embarrassing” being a Black founder constantly linked to negative stats – particularly when fundraising.

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Ava Patel

Ava Patel is a cultural critic and commentator with a focus on literature and the arts. She is known for her thought-provoking essays and reviews, and has a talent for bringing new and diverse voices to the forefront of the cultural conversation.

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