Source: yandex.com
America – It is the dream for any entrepreneur to go there and start a business. It is believed that whoever goes to America makes it big. But, when it comes to venture funding on Black Entrepreneurs or businesses, it was always small in the U.S. Sadly, up till 2021, only 1% of the total venture capital was being given to the Black built entrepreneurial startups. This shows how difficult it is to be a Black business owner in America.
But, this was the situation in 2020. In the past year, the Black community has been a great rise in venture capital investments after the “racial justice movement” started all over the country. Only in the first 6 months of 2021, the Black entrepreneurs in the country had already been given around 1.8 billion US dollars in funds [1] This was not double but four times the amount when compared with the first 6 months of the year 2020.
Today, there are many financial institutions and other companies that are betting on the businesses owned by Black owners. This is why the numbers are going up. 3 of them will be discussed below.
3 Financial Institutions and Venture Funds Betting on Black Entrepreneurs
Source: yandex.com
- Pay Pal
In October 2021, Pay Pal announced that it was going to invest a whopping 50 million US dollars in Black as well as Latinx-led venture capital. They will be investing in eight funds. This decision has been made because Pay Pal promises to invest a total of 530 million US dollars to support and help Black entrepreneurs and businesses to grow. This will in turn strengthen the minority community to give rise to economic equality and racial equity.
According to Dan Schulman, Pay Pal’s CEO, the Black founders have been ignored in the venture capital business for quite some time now. The company is working towards bringing a balance in the process of fundraising to give an equal chance to Black businesses too. - SB Opportunity Fund
This is a 100 million US dollar fund that is focused on bringing justice to the global funding ecosystem. The committee that releases the funds has both internal as well as external employees that are working tirelessly to ensure funds go to the deserving Latinx, Black and Native American founders. This will give a boost to the Black-owned business in no time. - First Boulevard
First Boulevard has raised around 5 million US dollars to invest in the digital banks that are aimed especially towards Black Americans. They believe that Black Americans have not been allowed to learn how to deal with money. Their fund aims to tell members about assets that are important to building wealth. These include cryptocurrency, money market accounts and even savings account that give higher yield.
As you can see, a shift can be seen in the venture capital world towards the Black community. Finally, things are changing and for the best
References
crunchbase.com | crunchbase.com | prnewswire.com | theopportunityfund.com | techcrunch.com | yandex.com
