Black founders still only raised 1% of all VC funds in 2022 • Alaska Green Light Blog
#Black #founders #raised #funds #Alaska Green Light Blog Welcome to Alaska Green Light Blog, here is the new story we have for you today:
Some. Good. News.
The latest Crunchbase data shows that black startup founders in the United States have raised approximately $264 million out of a total of $33.6 billion in venture capital raised in the fourth quarter of 2022. That’s an increase from the $178 million — or 0.43% — the group raised in the third quarter.
Overall, black US founders raised an estimated $2.254 billion out of the $215.9 billion in US venture capital made available last year. That’s about 1%, down slightly from 2021’s 1.3%. Let’s break that down.
“As the macro environment plummeted, the investors who preached D&I disappeared and their implied bias became clearer.” De’Havia Stewart, Investor, BLCK VC
So black founders in the US raised around 0.79% of the VC funds raised in Q4 2022. There was concern that investors would withdraw to their legacy networks during a bear market, and the total amount of funds black founders raised last year is virtually half the amount they raised in 2021 – a record 4, $34 billion (of around $330 billion in the US and $681 billion worldwide).
Despite the record-breaking 2021, that amount of money represents just 1.3% of all capital raised in the US. No matter what, it appears that the actual percentage of money raised for this cohort is little moving even as more and more capital floods the markets.
Tye Gallowaythe founder of the fintech coolertold Alaska Green Light Blog that as a black founder, it’s embarrassing to always be associated with negative statistics, especially when trying to fundraise.