It’s Black History Month, and while we reflect on historic Black leaders and their stories, it’s important to talk about the future and how to grow as a community. The racial wealth gap has been devastating to the Black community for decades. However, with tech advancements, Black entrepreneurs are finding ways to change the system. Renee King started FundBlackFounders, a crowdfunding platform that helps finance Black businesses. King joined Bold TV to discuss the importance of funding and what’s next for the platform.
Black entrepreneurs are underfunded
Let’s get into some numbers. There are more than 2 million Black businesses in the United States, but only 1% of venture capitalists’ funds go to Black entrepreneurs. Also, 44% of Black entrepreneurs use their own money to fund their businesses. This is more than the average small business owner (37%). Meanwhile, Black businesses have made more than $150 billion in revenue.
The racial wealth gap plays a huge role in the lack of funding. King discussed friends and family capital, which often is an essential boost to starting a business. Due to the racial wealth gap, Black people rarely have access to colleagues who can afford to donate to their start-up.
How to get involved
King started FundBlackFounders to serve as “the new friends, family, fans and funds” for Black entrepreneurs who need money to start their businesses. There are a plethora of Black entrepreneurs currently looking for funding on the site. The website features a range of live campaigns accepting donations for hair care products, apps, cereal and more. In the future, they will roll out a match funding feature where FundBlackFounders matches the amount of money a campaign raised on their platform.
For more on funding Black businesses, check this out!
To learn more about funding Black neighborhoods, check this out!