(Photo by Flickr user WOCinTech Chat, used under a Creative Commons license)
The number of Black and Latinx women founders raising nine figures in the U.S. more than doubled over the last two years, but entrepreneurs who identify in these groups still receive less than 1% of all venture funding.
That’s according to a new data from the startup digitalundivided released this month via its latest ProjectDiane report. Released every two years since 2016, it seeks to put numbers behind the entrepreneurial experience of founders who are women of color.
Key findings include:
- Black and Latinx women founders received .64% of all VC investment since 2018.
- Since the 2018 report, the number of Black and Latinx women founders who raised $1 million or more doubled from 79 to 183.
- Collectively, Black and Latinx women founders have raised a total of $3.1 billion
- The median seed funding total for founders who identify in these groups is $479,000. That’s one-fifth of the overall median seed total of $2.5 million across the U.S.
The report says the growth in dollars raised and increased number of million-dollar fundraisers “are encouraging signs of progress and point to increased networks of support for Black and Latinx women founders.”
“At the same time, the overall percentage of venture capital that goes to these founders is startlingly low, and it will require active commitment and engagement on the part of founders, funders and partner organizations to shift the landscape of entrepreneurship,” the report states.
So where’s DC in all this?
Washington, D.C. is highlighted a few times in the report. Of the city’s with founders in ProjectDiane’s database, it has the fifth-highest concentration.
In all, 36 Black and Latinx women founders in D.C. raised $249 million, which is the third-highest total for a state overall behind only California and New York.
D.C.’s Howard University is also the top-ranked school for undergraduate programs that produce the most Black women founders, with 18.
A D.C. entrepreneur is also profiled in the report as one of the founders who raised more than $1 million. Jasmine Jones founded Cherry Blossom Intimates, which makes customizable post-mastectomy breast prosthetics, which are created with 3D printing. The Glenarden, Maryland-based company also offers size inclusive intimates for breast cancer survivors. After receiving a digitalundivided grant and taking part in a Techstars accelerator, she closed a seed round of $1.25 million in September, per the report.
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