Why Funding is Elusive for Black Founders
Young companies need money to grow. But Black tech entrepreneurs say they’ve been left out of the “elusive, secretive and chummy” world of venture capital which isn’t governed by the same civil rights laws that apply elsewhere, the Washington Post reports.
Of the estimated $136.5 billion in venture funding that went to tech startups in 2019, only 1 percent went to companies with Black founders, according to the Transparent Collective. The lack of funding translates into a loss of 9 million potential jobs, according to a 2016 study.
“Venture capital, from Silicon Valley to New York, remains an industry deeply rooted in its investing and hiring patterns, self-perpetuating funding for a limited number of privileged companies that are overwhelming white, male and Ivy League-educated,” Marketwatch explains. And investors have been flocking to proven ventures this year, the Wall Street Journal reports.
This is one of the many reasons why Solace turned to crowdfunding through SeedInvest.*
Solace co-founder David Odusanya shared his thoughts with SeedInvest: “If an idea inspires intrigue and the team members are former Nike senior executives, doors will often open. Doors that, unfortunately for many, would stay firmly closed. That being said, I often ask myself if my incredible co-founders were also Black, would the doors still have opened?”
David also shared his personal experience following his mum’s death in this blog post.
Black entrepreneurs often succeed by turning to other sources of income, like crowdfunding or debt, while others warn not to “let VCs be the gatekeepers of success.”
It is in this spirit that SeedInvest has launched a new initiative called “BlackCapital,” in collaboration with Kevin Johnson, a former mayor of Sacramento and former NBA player, as a way of tackling this problem.
Solace has served hundreds of families in our first year and we have big ambitions to grow. If you agree that all families deserve a better way, please consider joining us in revolutionizing the funeral business by supporting our crowdfunding at SeedInvest.com.
* Solace is offering securities under Regulation CF and Rule 506(c) of Regulation D through SI Securities, LLC (“SI Securities”). The Company has filed a Form C with the Securities and Exchange Commission in connection with its offering, a copy of which may be obtained at: Solace: https://www.seedinvest.com/solace
Photo of David by Grace Young
Solace is now Tulip Cremation, the nation’s largest online direct cremation services provider, delivering world-class and compassionate care 24/7.
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