Funding for black founders remains bleak – where do we go from here? • businessroundups.org

Last week, businessroundups.org reported that black founders in the United States raised 1% of $215.9 billion in venture capital last year. That should not be confused with the 1.3% raised in 2021, the 0.8% they raised in 2020, the 1% they raised in 2019, or the 1.1% raised in both 2018 and 2017 has been retrieved, according to Crunchbase data.

In case it’s not clear why these numbers are so appalling, it’s worth noting that black Americans have more than 13% of the population.

Every time these numbers are published, there are always a few people asking the same question: Where do we go from here? Does the next step look to alternative financing, or does it stay on the battlefield, always ready to fight?

Brandon Brooksone of the founders of Overlooked enterprisessaid now is the time to get creative with funding and pointed to Small Business Development Centers and grant programs as a way to make ends meet.

James Oliverthe co-founder of the app Kabila, countersigned that, saying it’s time for black founders to get sloppier than ever to get funding. “Period,” he told businessroundups.org.

Oliver, who is based in Atlanta, uses relationships to pick up a pre-seed and angel round by leveraging local resources, such as the Atlanta Tech Village, and also hosts “founder rounds,” in which other founders invest in his business.

“It generally sucks to be a black founder raising money right now,” he continued, adding that he once had an investor who funded early-stage companies pass on his idea because he didn’t have a built product. (Usually these investors support ideas, not products.) “When you put your back against the wall, you discover what you’re made of. Tap into your relationships, give to others first, which unlocks giving to you, and let’s get scrappy, y’all.