TLDR:
- Black founders struggle for their share of venture capital funding
- Less than 1% of start-ups with employees receive VC investment, with Black women receiving just 0.34% in 2022
Ayana Parsons, co-founder of The Fearless Fund, faced a preliminary injunction blocking them from awarding grants exclusively to Black women entrepreneurs. This action highlights the challenges faced by Black entrepreneurs in accessing venture capital funding. The ForbesBLK Summit discussed the issues of access and bias in the venture capital industry, with panelists emphasizing the importance of networking to increase funding for minority businesses. Stacey Abrams, co-founder of the Now Account Network, shared her insights on enabling Black Americans to thrive economically by standing firm, telling their stories, and staying connected. While there was a surge in VC funding for Black businesses in 2020 following the death of George Floyd, funding declined sharply by 2022, indicating a need for sustained efforts to support Black founders in the entrepreneurial ecosystem.
