Commentary: The old guard in venture reigns supreme


Share post:

Black founders raised $212 million out of $29 billion this Q2, picking up just 0.71% of the capital allocated to U.S. founders this quarter, according to Crunchbase. In Q2 2022, Black founders raised $602 million out of $62 billion, or 0.97%, of the capital allocated.

In total, Black founders raised around $565 million out of $75 billion in H1 2023, which is 0.75% of all capital raised in the U.S. so far this year. That, too, is a drop from the $1.8 billion out of $144 billion, or 1.25%, that they raised in H1 2022. Overall, funding to Black founders has gone down from previous years, but the overall amount of funding allocated has gone down, too.

This isn’t surprising. Black founders have never raised more than 2% of capital in any given quarter, and the funding to them has been on a steady decline since the first quarter of 2022. Black founders picked up at least a billion in every quarter of 2021, momentum pushed forward by the Black Lives Matter movement in 2020. But quietly, attention has moved elsewhere, and the consistent decline in funding proves the waning investor interest.

There seem to be two different worlds within the venture ecosystem. There is the old guard, the ones who have billions of assets under management, who operate in their bubble and rarely leave. Founders must go to them. Then there is the new guard, the emerging fund managers, many of whom are diverse, who are here to shake up the playbook. The problem is that they don’t have billions of AUM (assets under management), so even though their intentions are good, their checkbooks are dry.

Source link

Lisa Holden
Lisa Holden
Lisa Holden is a news writer for LinkDaddy News. She writes health, sport, tech, and more. Some of her favorite topics include the latest trends in fitness and wellness, the best ways to use technology to improve your life, and the latest developments in medical research.

Recent posts

Related articles

Procurement is painful, so Pivot wants to simplify it

Earlier this year, a big French tech company started requiring an email to the CEO for every...

How to raise a Series A in today’s market

If you’re an early-stage founder, the crazy days of 2021 are a distant memory. Money is tight,...

Why we’re seeing so many seed-stage deals in fintech

Welcome back to The Interchange, where we take a look at the hottest fintech news of the previous...

SBF’s trial starts soon, but how did he — and FTX — get here?

The highly anticipated criminal trial for Sam Bankman-Fried, former CEO of bankrupt crypto exchange FTX, begins Tuesday...

A tale of two research institutes

If you’re lucky, once a year you get to put together a panel built on pure kismet....

Tinder goes ultra-premium, Amazon invests in Anthropic and Apple explains its new AirPods

It’s that time of the week again, folks — time for Week in Review (WiR), TechCrunch’s newsletter...

How much can artists make from generative AI? Vendors won’t say

As tech companies begin to monetize generative AI, the creators on whose work it is trained are...

Venture capital is opening the gates for defense tech

Welcome to the TechCrunch Exchange, a weekly startups-and-markets newsletter. It’s inspired by the daily TechCrunch+ column where...