Venture capital for Black entrepreneurs plummeted 45% in 2022, data shows
Publishing timestamp: 2023-02-02 08:10:34
Summary
Black entrepreneurs have historically faced disparities in securing VC funding, but in the wake of the George Floyd racial justice reckoning, they saw historic gains in 2021. However, by the end of 2022, overall VC funding dropped by 36%, while financing for Black businesses saw a steeper drop of 45%. Beatrice Dixon, CEO and co-founder of Honey Pot Company, was able to secure crucial funding from a fund devoted to supporting women entrepreneurs of color and was able to launch her product in Target stores nationwide. Marlon Nichols, co-founder and managing general partner of MaC Venture Capital, said diverse businesses tend to take the brunt of VC slowdowns because firms typically resort to the status quo in times of economic uncertainty. Pocket Sun, co-founder and managing partner of SoGal Ventures, said venture capital is a very privileged and exclusive industry, and has always been that way. Studies have shown that investing in diverse teams can lead to higher returns for investors. Dixon called on investors to put their biases aside and see companies for their basics.
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Keywords: venture capital, business, breaking news: business, retail industry, business news, target corp,
Source: https://www.cnbc.com/2023/02/02/venture-capital-black-founders-plummeted.html