Funding to Black founders is on a downward trend once again. In 2023, there was a sharp decline for the third consecutive year. Out of $136 billion in venture dollars allocated, Black founders in the U.S. only received a meager 0.48%, totaling around $661 million. This data, sourced from Crunchbase, shows the lowest percentage in recent history.
The previous years had seen a slightly higher percentage, with Black founders raising at least 1%. However, 2023 confirmed suspicions as the market cool down had a significant impact on the Black community. In the first two quarters of the year, Black founders managed to raise 0.74%. The following quarter saw a steep decline to 0.13%, and in the final quarter, the numbers went up slightly to 0.20%.
The decline in funding has been consistent since the tragic murder of George Floyd in 2020. That year, there had been a notable increase in capital flow to Black founders as the tech industry pledged to provide better support. However, this promising trend has not continued, and the numbers continue to decline.
