We’re living at a time when uncertainty is the only thing we can be certain about. A global recession is looming, and countries around the world are facing unprecedented challenges. It’s time we reevaluate what works and what doesn’t—and which voices are part of that conversation.
One voice that we should include is that of women of color. Recovery requires resilience, and women of color share the intimate lived experience of overcoming insurmountable challenges. Within a difficult time, there has never been a better moment to imagine a more functional, fortified future.
WHY WE NEED TO INVEST IN WOMEN OF COLOR
Creating a better future requires investment. Unfortunately, women and other entrepreneurs that aren’t cisgender men only command a tiny stream of venture capital funding. In 2020, women-led startups comprised only 2.3% of VC funding, a number that’s worsened over time—down from 2.8% in 2019. And out of those statistics, only a sliver of a sliver goes to women of color, despite businesses touting the virtue of diversity.
For women of color who are successful in raising capital to realize their dreams, that investment falls off a cliff between the seed and Series A stages. And those seed rounds are far smaller than rounds raised by white and male-led companies. In 2020, Black women raised $125,000 in a median seed round, while Latina founders raised a median of $200,000. Yet the average investment for businesses not helmed by women was $2.5 million.
Continue reading: https://www.fastcompany.com/90808896/nows-a-great-time-to-start-investing-in-women-of-color
One voice that we should include is that of women of color. Recovery requires resilience, and women of color share the intimate lived experience of overcoming insurmountable challenges. Within a difficult time, there has never been a better moment to imagine a more functional, fortified future.
WHY WE NEED TO INVEST IN WOMEN OF COLOR
Creating a better future requires investment. Unfortunately, women and other entrepreneurs that aren’t cisgender men only command a tiny stream of venture capital funding. In 2020, women-led startups comprised only 2.3% of VC funding, a number that’s worsened over time—down from 2.8% in 2019. And out of those statistics, only a sliver of a sliver goes to women of color, despite businesses touting the virtue of diversity.
For women of color who are successful in raising capital to realize their dreams, that investment falls off a cliff between the seed and Series A stages. And those seed rounds are far smaller than rounds raised by white and male-led companies. In 2020, Black women raised $125,000 in a median seed round, while Latina founders raised a median of $200,000. Yet the average investment for businesses not helmed by women was $2.5 million.
Continue reading: https://www.fastcompany.com/90808896/nows-a-great-time-to-start-investing-in-women-of-color
