In the midst of nationwide protests last June, many venture capital firms acknowledged the problem — less than 1% of founders who receive venture funding are black, despite making up over 13% of the U.S. population. Many outlined initiatives and action plans aimed at tackling this problem.
Hallo conducted the research in order to create a benchmark around the progress being made towards fulfilling those promises.
The report analyzed 1,383 companies who raised a round of capital between July 1 and October 1 with a total funding amount between $500,000 and $20,000,000.
Hallo’s research found that out of the 1,383 companies analyzed, 31 had black founders. The companies combined raised $5,882,471,765 with $114,852,638 being invested in black founder-led startups.
Commenting on the findings, Hallo’s founder and CEO Vern Howard said: "Real diversity means real change. It’s up to venture capital firms and the startup community to decide if they are willing to step up and take action or simply stand back and allow black founders to be held back and limited by the ability to access venture capital."
Following the release of their first quarterly Black Founder Funding report, Hallo announced they will begin distributing a weekly report that analyzes the startups who raised venture capital to determine how many were led by black founders.
Howard said: "Our objective here is to keep a weekly pulse on progress being made so we can ensure that all the awareness and momentum that was built in June doesn’t slowly fade away."
To access the report’s findings, visit here.
Hallo is a diversity recruiting platform that helps connect college students across the country with leading companies like Apple and Google. Hallo has raised $1.9M in funding from Canaan Partners, Tribe Capital, Kleiner Perkins, and many other leading VCs.
The numbers represent the global startups who raised a round of capital between July 1 and Oct. 1, 2020. The total funding criteria was $500,000 — $20,000,000. This data was sourced from Crunchbase. Companies with at least one black founder were included. Six startups with black founders raised less than $500,000 or did not have any funding data disclosed were not included in the final numbers.
Q3 2020 Black Founder Funding Chart