Friday, July 8, 2016

This Black Female Venture Capital Founder is Closing the Racial Funding Gap - BLACK ENTERPRISE

by Carolyn M. Brown 
Originally published: July 6, 2016

There is a lot of talk these days about getting more women and minorities into the tech pipeline; from sponsoring programs to teaching girls to code, and ensuring recruiters seek out African American candidates.

Venture Capital & Black Female Founders

Nowhere is the diversity issue more evident than in venture capital, which is dominated by white men who fund very few startups founded by women and minorities. African American men receive 2% of the VC funding other startups get, while black women get a tiny fraction.

According to DigitalunDivided’s report, The Real Unicorns of Tech, VC firms lend white men $1.3 million on average, even if their startups fail, compared to $36,000 for black women. In the past five years, black women received a negligible 0.002% of venture capital funding, while the number of black women starting businesses has more than tripled. There are only 11 startups founded by black women that have raised more than $1 million in VC funding, including Black Enterprise 2016 Techpreneur of the Year nominee, Jewel Burks, Co-founder and CEO of Partpic, an Atlanta-based visual recognition startup.