ImpactAlpha, June 22 — Google launched its inaugural $5 million Black Founders Fund last year as part of its $175 million initiative to promote economic opportunity for Black Americans (see, “Scaling the ‘capillary banking system’ to expand access to capital”).
The fund awarded $100,000 in cash for 76 Black founders, who have gone on to raise more than $38 million, according to Google. It is launching a second $5 million vehicle that provide $100,000 in non-dilutive funding for 50 additional Black founders.
Tech companies like Google, Apple, Netflix and PayPal have contributed to the – slight – rise in capital going to Black founders (see, “Seven ways finance has changed in the year since George Floyd’s murder”).
A record 306 venture investments in Black-founded startups has boosted the share of U.S. venture capital funding going to Black founders to 1.4% so far in 2021, up from around 1% over the last four years.
Venture capital funds led by Black managers and looking to deploy capital for Black entrepreneurs include Sixty8 Capital, which raised $20 million to women and minority tech founders at the pre-seed and seed-stage.
Collab Capital raised $50 million to invest in Black-led early-stage businesses building generational wealth in Black communities. Harlem Capital raised $134 million in just five months to invest in startups led by women and minorities. Kesha Cash’s Impact America Fundraised $55 million to support technology companies disrupting systemic racism.