Black founders have long been overlooked by the venture community, raising only a tiny portion of VC funding.
In 2022, Black founders raised only 1% of total US funding, according to a report from McKinsey, and the downturn has cause the progress made over the last few years to reverse.
“There’s been a noticeable tapering in VC investments after [2021’s] blockbuster year,” said Shila Nieves Burney, general partner at diversity-focused Zane Venture Fund. “The decline underscores the need for sustained momentum and commitment from the investment community to ensure that the growth observed in 2021 isn’t just a one-off event but a foundation for the consistent backing of Black founders in the years to come.”
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