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USA Today – December 8, 2020 – Black women and Latina entrepreneurs get less than 1% of venture capital

I want the conversation around supporting women of color as entrepreneurs and founders to become the mainstream conversation.

Black women and Latinas are raising more venture capital funding than ever, tapping into Silicon Valley’s wealth-generating machine amid the nation’s racial reckoning, but funding parity is still a pipe dream for women of color, according to a new report.

“We have seen the number increase but not enough,” said Lauren Maillian, chief executive officer of of digitalundivided, which put out the report.

Black women-founded companies raised about $700 million in funding from 2018-2019, a significant increase from the previous two-year period, yet still account for only 0.27% of the $276.7 billion in venture capital investment, according to the ProjectDiane report from the not-for-profit group, which supports female entrepreneurs of color and, is named for civil rights pioneer Diane Nash.

Latina-founded companies raised $1.03 billion in the same period, accounting for 0.37% of total venture capital investment during those two years, the report found

Combined, Black women and Latinas make up less than 1% of all venture capital investment.

ProjectDiane is a biennial demographic study that tracks public funding announcements for Black women and Latina entrepreneurs.

 

– USA Today`