- Black-led VC firms got less than 1% of all US capital raised in 2021, data shows.
- A new report reveals that more Black partners are launching firms, many within the past two years.
- These Black VCs hope to effect change by investing in more underrepresented startup founders.
While venture-capital funding to Black startup founders smashed records last year — it increased 281% from 2020, according to Crunchbase — the same can’t be said for investments in firms led by Black venture capitalists.
Funding to Black VCs in the US significantly dropped last year to $1 billion — less than 1% of all US capital raised —from the $3.5 billion they raised in 2020, according to data from Crunchbase. And that was in a record-breaking 2021 in which US VC firms raised $128.3 billion, according to PitchBook data.
Black VCs are increasingly addressing such long-standing diversity, equity, and inclusion issues head-on by starting their own firms.
A new report by the nonprofit Blck VC, in partnership with Silicon Valley Bank, found that there are more Black VCs writing checks than ever before. More than 50% of Black partners who were part of the study launched new firms, and half of those were founded within the past two years, according to the report.
By starting their own funds, these Black VCs hope to effect change by investing in more underrepresented startup founders who have traditionally been overlooked.
Do you know of other Black VCs who started their own funds to back underrepresented founders? Let us know by contacting Vishal Persaud at vpersaud@insider.com.
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