By Justice Allen
- Forward-thinking venture capital firms are investing in the future of minority owned companies
- 81% of VC firms didn’t have a single Black investor
It’s no secret that venture capital investors are about as diverse as a loaf of sliced white bread, and the same can be said for the companies they invest in. A TechCrunch report called out the fact that 81% of VC firms didn’t have a single Black investor. But alas, the tide may be turning thanks to a small number of forward-thinking firms intent on creating a seat at the table for diverse entrepreneurs; including the likes of Harlem Capital Partners, Plexo Capital and SoGal Ventures. This year could be massive for the minority founder’s trying to secure their bag.
Why This Matters: To say that the lack of VC funding has deterred minority founders from starting businesses would be capping to the highest degree, given the abilities of Black folks to level up their businesses, which grew by 400% in 2018 alone. In recent months we’ve seen an increase in the number of investment funds that are focusing specifically on people of color. Former BET CEO Debra Lee even suggested she’s cooking up a VC fund of her own at the Upfront Summit in Pasadena.
In recent months we’ve seen an increase in the number of investment funds that are focusing specifically on people of color
This new wave of investment firms act as a much-needed lifeline for minority business owners- especially black female entrepreneurs. Despite the huge amount of venture funding pouring into tech companies in the last decade to the tune of $424.7 billion, Black women led companies have only secured .0006% of that money. It’s high time these women of business get their fair share of the investment pie.
Situational Awareness: At this point it seems the VC industry is becoming slightly woke, but the work is far from finished. While we salute the investment firms stepping up to answer the challenge, let’s take a look at how we can act as a solution. It starts by investing in ourselves and our financial growth. Investing in companies as a minority, whether it be as large as a VC investment, or as small as supporting your local business, could be the way that we make our seat at the table a permanent one.
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