Venture capitalists vowed to address diversity at their portfolio companies by funneling more funding into diversely-owned companies and creating more pathways for Black VCs to enter the space. While there has been some movement, Black investors are still underrepresented across the US and this is affecting how funding decisions get made.
For example, in June Crunchbase pointed out that VC funding in Black businesses has dramatically slowed as investors have pulled back in the last few years.
Venture funding to Black startups was $324 million in the second quarter of this year—a big dip from $850 million-$1.2 billion in prior quarters. This tight-fisted approach can be linked to VCs’ limited network of Black funders (investors rarely invest without a trusted referral) and overall lack of awareness of who’s out there.
Luckily, there are investors making decisions and closing funding rounds that are representative of the Black businesses we know deserve backing. Here are a few Black, Zellennial investors that are making a difference.
The British-Nigerian tech thought leader, who while in her early twenties, is a VC Scout for Ada Ventures ( £50M UK-based Fund). She also reportedly advised the government on the allocation of a £250m+ investment for tourism, and job creation.
Jonathan Moore, 26, an analyst for TCG Capital Management spearheaded a crypto fund and has since closed more than 20 deals and reportedly to continue to tap into BIPOC talent and bridge the gap between Web3 and VC investment.
This 24-years-old manages an investment portfolio for one of hip-hop’s most prosperous labels, Quality Control (QC), whose roster incudes Migos, Lil Baby, City Girls and Lil Yachty, among others