Despite the growth of Britain's tech sector, Black founders continue to struggle to secure venture funding. This article explores the systemic challenges they face, including racial bias and a lack of diversity in the investment community. It also highlights the efforts of organizations like Colorintech to support underrepresented founders and foster a more inclusive tech landscape.
In 2018, Black founders secured just 0.23% of venture funds, according to Extend Ventures. That share of the market for the minority group has increased little since then. Black founders in the U.K. are looking to buck the trend of declines in funding by targeting high-profile investors and by adopting a more community-focused approach that includes the support of'family and friends' funding rounds.
Ayesha Ofori, founder of a female-focused financial investment platform, Propelle, faced numerous rejections despite her background at Morgan Stanley, Goldman Sachs, and an MBA from London Business School. Ofori notes that fundraising is 'phenomenally difficult' and that she feels her gender and skin color are factors in her lack of progress. Black founders often face systemic challenges ranging from racial stereotypes to a lack of diversity in the sector. Some VC firms subscribe to quotas, turning down Black founders once they've hit their threshold, while others pit Black founders against each other for limited funding. In response to the lack of data and representation, Colorintech was established to foster a community for people of color in tech. The organization reports that underrepresented founders on their program have raised more than $50 million in funds, highlighting the potential for community support in bridging the funding gap
BUSINESS SOCIAL ISSUES BLACK FOUNDERS VENTURE CAPITAL FUNDING UK TECH DIVERSITY INCLUSION COLORINTECH SYSTEMIC CHALLENGES
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