Venture capital funding has historically been limited for women and founders from Black and brown communities. We have collaborated with Crunchbase to analyze funding trends, identifying moments of advancement and setbacks for marginalized entrepreneurs.
In 2021, Black founders experienced a surge in funding that steadily declined as the market cooled and DEI initiatives receded. However, funding for female founders has remained relatively stable at around 2%. Interestingly, funding for mixed-gendered teams has been on the rise, suggesting that women founders may receive larger investments when partnered with male co-founders.
Stay informed about the evolving landscape of funding for underrepresented communities with our selected stories.
Explore the Funding Landscape for Black Founders
Despite initial promises to support Black founders following the events of 2020, funding for this demographic has dwindled. In 2021, Black founders in the U.S. secured only 0.48% of all venture capital funding, amounting to $661 million of $136 billion. Discussions continue on what is necessary to increase funding opportunities for Black entrepreneurs, with persistent calls for more investment, trust, and reduced bias.
In 2022, Black founders saw a decrease in funding, receiving just 1% of all venture funding, marking a drop from the previous record-breaking year.
Insights into Funding Trends for Women Founders
Funding for women founders has exhibited consistency over the years, while support for mixed-gendered teams is on the rise. However, solo women founders face significant challenges in securing investor funding.
Despite fluctuations in funding levels, there have been no substantial changes to aid solo women founders.
Examining Funding for Other Marginalized Groups
While discussions often focus on funding disparities for Black and women founders, other marginalized communities also encounter obstacles in accessing investor capital. Latino founders and members of the LGBTQ+ community, for example, face similar challenges and are beginning to receive more visibility in tracking funding allocations.
Insightful Commentary on Funding Disparities
Experts, investors, and founders share diverse perspectives on the current funding landscape for marginalized groups, offering valuable insights into the challenges and opportunities present.
Global Perspectives on Funding Challenges
Marginalized founders in Europe also confront hurdles in raising capital, with aspirations of breaking into the U.S. market despite facing similar barriers. Their experiences shed light on the broader context of funding disparities beyond national borders.
