Dominic-Madori Davis @dominicmadori / 11:26 AM EDT•October 20, 2023
Image Credits: Klaus Vedfelt / Getty Images
Black founders raised 0.13% of all capital allocated to U.S. startups in Q3, according to Crunchbase. That’s about $39.7 million out of $29.9 billion.
This number is a massive year-over-year drop.
In Q3 2022, Black founders raised $1 billion out of around $81.7 billion in venture dollars, around 1.2%. Actually, $39.7 million is a massive quarter-over-quarter drop. Just in Q2, Black founders raised $212 million out of $29 billion, and in Q1, they raised $352 million out of $45 billion. There seems to have been an overall dip in venture capital funding this Q3, but, as we’ve covered, funding to Black founders has been consistently declining since 2020.
“Unfortunately, the venture industry is moving in the wrong direction here,” Gené Teare, the senior data editor at Crunchbase, told TechCrunch. “It may be tempting to blame a larger market correction, but the data tells a different story.”
She pointed out that it’s not just the dollars to Black founders that are down, but also the overall percentage of funding remains low, dropping to some of its lowest levels. “Despite the valiant efforts of many firms and organizations, it’s clear that more work needs to be done to overcome biases in the ecosystem,” she continued.