Amount of capital The rise of black entrepreneurs is diminishing.
The latest numbers from Crunchbase show that black founders raised $187 million in Q3, which is a nearly $1.1 billion decrease from the $1.1 billion raised in Q3 2021 and a significant decrease from the $594 million raised in Q2.
Black founders raised just 0.12% of the $150.9 billion invested in Q3.
Within that, black women accounted for 49% of the capital allocated to black founders in Q3, raising the number to around $91.63 million, according to Crunchbase. To pick up the slack, at least, it’s good to see that black men and women appear to have received an equal amount of funding this quarter, even if the split is staggering.
Truth be told, there are homes worth over $187 million. Adam Neumann fired more than one round. All black creators It can be in a quarter. Adele is worth $220 million. However, these numbers are not surprising. According to TechCrunch, investors often retreat to their networks during economic downturns to take less risk on smaller parties.
“When the venture capital industry catches the flu, unrepresented founders catch pneumonia.” Tiana Tucks, Investor, Color Capital
This Q3 amount of capital raised by black founders is equal to the $180 million allocated in Q3 2020, so black founders were able to raise $187 million from just 32 deals. It took 93 deals to reach $180 million by 2020.
Overall, black founders have raised more than $2 billion in venture capital this year, down from the record-breaking $4.72 billion allocated in 2021.
