Black founders received 0.13% of capital this Q3 | TechCrunch

Kusimulkku , 8 months ago

The article doesn’t mention how big of a percentage black founders are. Would be interesting to know and compare to that funding number

TropicalDingdong , 8 months ago

Venture captitolism is more about keeping class structures intact that it is creating hand over fist revenue. It rewards credential-ism and “coming from money” more than intelligence, drive, or grind.

If you’ve got a good idea and looked for money to fund it, don’t feel slighted by a rejection by VC. They don’t know their asses from wholes in the ground when it comes to finding diamonds in the rough, and the numbers pan out. Venture capitol is less effective than a coin flip at identifying successful business models.

autotldr Bot , 8 months ago

This is the best summary I could come up with:

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“Unfortunately, the venture industry is moving in the wrong direction here,” Gené Teare, the senior data editor at Crunchbase, told TechCrunch.

A lot of the diversity, equity and inclusion promises made after 2020 were broken, and conservative activists have started attacking grant programs that seek to help marginalized communities.

Given that context, Teare said she wondered if there is now an abundance of caution in the ecosystem that is preventing investors from taking chances on first-time founders who are more likely to be diverse.

Yves Perez, the co-founder of Workbnb, called 2023 “the year of smoke and mirrors for Black founders raising.”

“I watched several Black founders suddenly adopt AI to help them raise or drop their valuations significantly so they could get fundraising over with,” he said.

Black founders have also spoken more and more of simply leaning into their own networks rather than seeking capital from the old guard players who have become more obvious in not supporting them.

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The original article contains 535 words, the summary contains 161 words. Saved 70%. I’m a bot and I’m open source!