SITUATION:
Black female entrepreneurs face a challenge when they try to raise to money.
The funding market is predominantly a white and male venture capital industry.
Venture capitalists have tendency to believe in, & fund founders in this group.
Women in sports, entertainment, and government leading movement to change.
SIGNIFICANCE:
Capital tends to go to those who are familiar & have the ‘right’ pedigree.
So money is invested in what you know & who you know.
Created landscape where white men receive overwhelming majority of funding.
Venture capital beginning to see need for “discoloring” investment portfolios.
SOLUTIONS: (Under way)
Black female athletes coming forth to invest in new ventures by black women.
Like Serena Williams,- Founded San Francisco-based Serena Ventures in 2014.
Awareness increasing among males, press, and public so action shaping.
Key priorities of Biden Administration & National Venture Capital Association.
SAYS:
“Black founders contend with systemic inequity at each step of their journey.
Investors expect to see more traction from Black founders than their White counterparts,
and will often question their technical expertise and market understanding” – Serena Williams
STATS:
Only 4% of the people who work in venture capital are Black.
Only 3% of the people actually leading investments are Black.
Investing in people who look like you leads to systemic exclusion.
In 2018 & 2019, Black women founders raised only 0.27% of venture capital.
3% of businesses in the area with 500 employees are owned by women.
Los Angeles ranks ninth in percentage of women-owned businesses at 20.99% .
Third of women-owned businesses with more than 500 employees or 3.20%.
SOURCES:
1) National Venture Capital Association
202.864.5920
Bobby Franklin
President and CEO
2) Key Policy Priorities by New President: https://nvca.org/pressreleases/nvca-outlines-key-policy-priorities-in-letter-to-joe-biden/
3) Serena Williams calls on Silicon Valley investors to back more Black women entrepreneurs –https://www.bizjournals.com/bizwomen/news/latest-news/2020/12/serena-williams-calls-on-silicon-valley.html?ana=e_n_set1&j=90542011&t=Niche&mkt_tok=eyJpIjoiWlRZMU9EQTJZamMyWkdaaCIsInQiOiJoRVZucVA0UUFHR09xYk9uUzNKajJIV2lkNEVSWHRIZEwySHZIa3oraTBidnVtZ0JFb3Jtb1pMcWYrK3kwYllxOVwvaXFidVJKaGhFMWJnYnZBOHc1SUNNNjlDVmFOXC9tekNnblJXNndza3RaSTBMU2Q1bTBFT1dNYSsyU0ZsWitOIn0%3D
