Black Unicorns Are Rare in Tech and the Downturn Could Make It Worse – Bloomberg

Category: Black Lives Matter

Its a complicated time to be a Black entrepreneur. Some Black founders in recent years have created formidable startups with towering valuations. But there are still shockingly few large VC-backed startups with Black leaders, and recent months chaos in the venture capital market has taken a disproportionate toll on their companieswiping out diversity gains in fundraising.

On the heels of the Black Lives Matter movement, Black entrepreneurs raised record amounts of venture funding. In the second quarter of last year, they took in $866 millionaccording to Crunchbase data, almost double the previous years US total.But in the second quarter of this year, Black-founded companies raised just $324 million, a 63% drop. Meanwhile, the decline in the VC industry as a whole was not nearly as stark: PitchBook data shows that overall VC funding in the US fell by just 23% in the same period.

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Black Unicorns Are Rare in Tech and the Downturn Could Make It Worse - Bloomberg

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August 24th, 2022
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