Venture Capital has had a rough year. For Black founders, it’s been even worse. Because despite the promises and handwaving only 0.13% of VC went to Black founded companies in the third quarter of 2023.
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.”
For more, read “Black founders received 0.13% of capital this Q3.”