Civil unrest in the wake of George Floyd has not solved racial inequity in the venture capital world
Black women and Latina entrepreneurs still receive less than 1% of venture capital funds.
The civil unrest that was sparked after a video surfaced of George Floyd being on the ground with a police officer’s knee to his neck for eight minutes and 43 seconds created a conversation throughout the nation about inclusivity, equality, justice.
Despite the renewed energy, change doesn't happen overnight, and is unfortunately, a slow, gradual, and sometimes draining process.
Seven months later, the “slow” and “draining” part of it still holds true. In the venture capital sector, Black women and Latina women entrepreneurs received less than 1% since the uprisings, according to a study by digitalundivided called Project Diane.
It is the first biennial study commissioned by digitalundivided to look at the state of Black women and Latina startups.
In spite of the obstacles and lack of funds, both groups still rise to the challenge of inequity.
Beyond the current statistics, Black women and Latinas are quickly raising venture capital funding, and throughout the year of a racial awakening, have gotten involved with Silicon Valley’s power machine of money.
But Lauren Maillian, CEO of digitalundivided, said that while there is an increase of representation, it isn’t enough.
Between 2018 and 2019, Black women-founded companies raised almost $700 million. This was a significant increase reflecting .27% of the 276.7 billion in investment according to a Project Diane report.
Latina-founded business funded $1.03 billion in the same time frame, making up .37% of the total venture capital investments.
Still, with increasing numbers, Black women and Latinas made up less than 1% of all the venture capitals.
Though these statistics are disheartening on the surface, they also beg the question of what the George Floyd uprisings have to do with venture capital.
The majority of the venture capital investments are composed of white men and it will be a mountain to climb for Black women and Latinas. Both the racial and gender gaps combine to double the difficulty.
Chipping away is the only approach, and the previously-mentioned “slow” and “gradual” process is in full effect.