Top Venture Capital firms that support Black-owned businesses in the U.S.
Black-supporting venture capital (VC) firms have been in long existence. However, following the ongoing nationwide fight against racial inequity more VCs and investors are giving more priority to Black-owned businesses.
According to a TechCrunch report, 81 percent of VC firms in the U.S. do not have any Black investors. A 2017 Harvard study also revealed that women account for less than 10 percent of the entrepreneurial and venture capital labor statistics between 1990 and 2016, with 2 percent being Hispanics and less than one percent African Americans.
A more recent study by Stanford revealed that even the few successful Black venture capital firms experience more difficulties in the industry compared to their white counterparts. Black and Latinx women founders have also been on the lower end of the spectrum, as a result, more women of color are taking up the challenge of creating venture capital firms to support more women entrepreneurs, especially women of color.
Here are some Black VCs making a difference in the industry:
Blck VC is a Black-led venture capitalist group that aims to “connect, engage, empower and advance Black venture investors by providing a focused community built for and by Black venture investors,” its website stated. The goal of the firm is to increase the number of Black venture capitalists to 400 from 200 by 2024. Black VC plays a role in including diversity and inclusion practices in the venture capital industry.
Black Angel Tech Fund was founded by a group of Black entrepreneurs and angel investors. They are focused on Black-tech companies that specialize in software programs and Information Technology Communication. Their portfolio includes OmniSpeech, an IT company that developed a software program that enhances sound quality on different communication platforms.
Backstage Capital is focused on “minimizing funding disparities in tech by investing in high-potential founders who are people of color, women, and/or LGBT,” according to the company founder Arlan Hamilton. The company said it has by far invested $7 million in startups led by founders in minority and underserved groups. The firm’s portfolio includes CurlMix, Swivel Beauty, and Career Karma.
MaC Venture Capital is a merger between Crossculture Ventures and M Ventures. The firm is committed to “finding ideas, technology, and products that can become infectious,” according to its website. The firm has a diversified team of women and people of color who have track records of success across several areas in the tech industry.
Harlem Capital says it’s on a mission to transform the face of entrepreneurship by “investing in 1,000 diverse founders over the next 20 years.” The firm kicked-off as angel investors, until they debuted their VC fund in December 2019 with a $40.3 million seed.
The New Voices Fund was created to invest in women of color, especially African American women entrepreneurs. The fund $100 million Voices Fund was created by Richelieu Dennis after he sold his Shea Moisture and purchase of Essence Magazine from Time Inc. The fund seeks to “empower women of color entrepreneurs to reach their full potential.” Its focus is on women on color entrepreneurs who are launching startups, small businesses, or community-focused enterprises, and need capital to launch or expand.
Base 10 is a Black-led VC founded by Nigeria Adeyemi Ajao and TJ Nahigian. The company debuted in 2018 with a $137 million seed fund. Base 10 is focused on providing capital to AI-focused startups. Included in the company’s portfolio are The Pill Club, Shipwell, and We Travel, among several others.
The Fearless Fund is a Black women-led fund in Atlanta that helps to create more funding and business opportunities for women of color. The firm was founded by Keisha Knight Pulliam and Ariane Simone. According to its website, the Fearless Fund “invests in women of color-led businesses seeking pre-seed, seed level or Series A financing. The fund is built by women of color for women of color.
Cleo Capital was created from the stables of former advisor to the creators of Bumble App, Sarah Kunst an entrepreneur and the managing director of Cleo Capital. The firm is a female-focused investment fund that specializes in investing in female scouts and then uses the funds to invest in promising companies. Since its founding, Cleo Capital has raised millions of dollars to promote diversity and inclusion of underserved female groups in the VC industry.
Global tennis champion Serena Williams debuted her investment fund in 2014 to increase opportunities for founders across different industries. Serena Ventures is particular about “companies that embrace diverse leadership, individual empowerment, creativity, and opportunity.” Serena also partnered with Bumble Fund to show her support in investing in women of color.
Digital Undivided is a Black and Latinx-focused VC founded by Black and Latinx women. It has over 52 companies in its portfolio, with $25 million in investment distributed across these companies and 2,000 founders. The firm says its main focus is “investing where others won’t and championing what others don’t.” It has a mantra that says “Go Big, or Go Home.”
Other Black VC firms include:
Backstage Capital
Diversecity Ventures
Precursor Ventures
Devcolor
Be the first to comment!
You must login to comment