The amount of capital raised by Black entrepreneurs continues to decrease.
The latest Crunchbase numbers show that Black founders raised $187 million in Q3, a staggering decline from the nearly $1.1 billion they received in Q3 2021 and a sizable drop from the $594 million the cohort raised in Q2.
Black founders raised just about 0.43% of the nearly $43 billion deployed in Q3. (Correction: This article was updated to show that Black founders raised 0.43% of all venture funds for Q3, not 0.12%.)
Within that, Black women raised 49% of all the capital allocated to Black founders in Q3, according to Crunchbase, pacing the number at around $91.63 million. To grab crumbs, it’s good, at least, to see that Black men and women appeared to receive nearly equal amounts of funding this quarter, even though the number they split is appalling.
Frankly, there are homes worth more than $187 million. Adam Neumann raised more in one round than all Black founders could in one quarter. Adele is worth $220 million. However, these numbers are not necessarily surprising. TechCrunch reported investors often retreat to their networks amid economic downturns, taking fewer risks on minorities.
“When the venture capital industry catches a cold, underrepresented founders catch pneumonia.” Tiana Tukes, investor, Colorful Capital
Perhaps this is best exemplified by the fact that the capital raised by Black founders this Q3 is roughly on par with the $180 million allocated to the cohort in Q3 2020. However, Black founders were able to raise that $187 million from just 32 deals, compared to 2020, when it took 93 deals to hit $180 million.
In total, Black founders have raised a little more than $2 billion in venture capital this year, a decrease from the stunning $4.72 billion allocated in the record-breaking year that was 2021.