Black Tech Nation Ventures was founded in 2021 to bridge the funding gap for Black founders in response to the surge of venture diversity initiatives following the tragic death of George Floyd in 2020. As the backlash against diversity-focused investments grows, the firm’s mission is more crucial now than ever.
Based in Pittsburgh, this venture firm has successfully raised its first $50 million for its inaugural fund. The fund aims to support pre-seed and seed-stage software startups led by underrepresented groups, including Black, women, and LGBTQ+ founders. Notable backers of the firm include Alphabet, First National Bank, and billionaire Mark Cuban.
David Motley, a general partner at BTNV, shared the challenges faced during the fundraising journey. Despite initial success in 2021, reaching the full $50 million goal proved to be a tough endeavor due to shifting market conditions and dwindling investor interest in diversity-focused ventures.
While the industry faces a resurgence of traditional investment patterns, BTNV remains committed to its mission of supporting underrepresented founders. The firm’s investments range from $250,000 to $1 million, focusing on enterprise software solutions in sectors like fintech, edtech, and clean tech across the U.S.
Motley emphasized the importance of not viewing diversity initiatives as temporary trends but as sustainable investment opportunities. BTNV’s collaboration with Black Tech Nation, a nonprofit founded by Kelauni Jasmyn, aims to extend the impact of their investments beyond financial returns by fostering connections within the Black tech community.
Despite the firm’s dedication to backing underrepresented founders, the primary goal of Fund I is to deliver top-tier returns that justify future fundraising efforts. By focusing on underserved markets, BTNV aims to demonstrate that championing diversity in venture capital benefits everyone involved.
