The Black Female Funding Gap and Those Who Are Changing the Tide
For as much progress as we’ve made, the real telltale sign of equality is in the money. Specifically, in venture capital. Business funding tells a story through numbers alone, and it’s no secret that they’ve looked bleakest for Black female founders for a long time. To put this into perspective: According to Fortune, as of December 2020, only 93 Black women had secured $1 million or more in funding for their business. Taken alone, this statistic is startling. But, it’s part of a larger narrative, and a hopeful future, as this number had tripled since 2018 when only 34 Black female founders had ever raised that much.
While we’re still lightyears away from where we need to be for true equality, there are venture capitalists and founders alike who are truly changing the tide. These pioneers are claiming their rightful stake in Silicon Valley and beyond, inspiring generations of Black founders and investors behind and around them. Here’s a current look at the state of affairs with the racial and gender disparity in VC funding.
While it’s not necessary to raise venture capital to be successful, it helps. Cash buys time in business, and the right VC firms also open doors to connections. When a business is already doing well, an infusion of capital can surge the business to new heights. And, it is when a business is doing well that it’s proven it’s a worthy investment. So, where’s the disconnect?
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