Regarding raising capital, Black women small business owners continue to be among entrepreneurs shunned in their quest to do so.
The fresh statistics are from this report. The analysis examined growing disparities and disadvantages female-led and people-of-color start-ups endure in obtaining much-needed financing.
Observers expressed concern if the latest funding downturn for female and minority founders will keep falling for those businesses as anti-DEI pressures continue to grow. They have come from conservative activists against private and public organizations as they have in recent months.
To boot, the meltdown comes roughly four years after the murder of George Floyd and promises by corporate America to invest billions of dollars into the Black community. That included vows to help Black small businesses gain financing to grow. However, many of the pledges have not yet surfaced. And that reportedly has occurred as DEI critics have since legally attacked such investment.
He added, “But with less money overall, this trend was short-lived. The pendulum swung even further back as VCs cautiously invested in decks that easily resonated. Investors are missing opportunities for outsized returns from underrepresented founders and less familiar ideas.”
Dropbox DocSend reported that if a team had minority team members, the business model slide was among the most scrutinized by investors. However, diverse teams received 29% less time on their business model sections than all-white teams.
Victoria Yampolsky, president and founder of The Startup Station, commented on the analysis in a news release. The Startup Station describes itself as a CFO advisory and finance education platform for startups and small businesses.
“Fundraising is rarely a quick process, especially for underrepresented founders,” she stated. “Despite increasing challenges, all-female teams continue to show unparalleled determination and resourcefulness. It’s more than just fundraising, though: utilize your existing network while you build a new one, apply to an accelerator, enter a pitch contest and attend startup conferences.”
She added, “Above all, believe in yourself, your ability to raise money and your mission. Having an unwavering will to persevere and open-mindedness to try all available resources can make the difference between success and failure.”
Source: Black Enterprise
