Black Founders Fund: Bridging the Venture Funding Gap

The Black Founders Fund is a vital initiative that's helping to bridge the venture funding gap for African American entrepreneurs. It was founded by Arlan Hamilton, who had to overcome her own struggles to secure funding for her startup, Backplane.

The fund has made significant investments in startups like Walker & Company Brands, a personal care products company that offers products for people with curly hair. This investment not only provided much-needed capital but also helped to bring more diverse perspectives to the table.

The Black Founders Fund is more than just a source of funding - it's a platform that connects entrepreneurs with valuable resources, mentorship, and networking opportunities. This support can be a game-changer for startups that might otherwise struggle to get off the ground.

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The Black Founders Fund is a remarkable program that has been making waves in the startup world. It provides over $150K in cash awards and hands-on support to help Black entrepreneurs build and grow their businesses.

One of the key eligibility criteria for the program is that the company must have at least one Black founder. This ensures that the support is specifically tailored to the needs of Black-led startups.

The program is open to companies that are between pre-seed and Series A funding stages, and have a scalable product or service that is ready to go global.

Since 2020, the program has awarded over $30 million to help Black-led startups in Africa, Brazil, Europe, and the U.S. secure funding, strengthen communities, and create generational change.

Here are some of the benefits that recipients of the Black Founders Fund can expect:

The program has already had a significant impact, with one notable example being Propel, a company that helped businesses collaborate with over 200+ tech and development countries around the world. Through the Black Founders fund, their tech team tripled in size, their product strategy sharpened, and they successfully launched their community platform.

The SoGal Foundation is hosting the Black Founder Startup Grant to provide several $10K and $5K cash grants to minority business owners. This grant aims to provide Black women and nonbinary entrepreneurs with business financing, recognizing that Black women founders are one of the fastest growing demographic of entrepreneurs.

The Google for Startups Black Founders Fund provides over $150K in cash awards and hands-on support to help Black entrepreneurs build and grow their businesses. Recipients also receive up to $100K in Google Cloud credits, hands-on mentorship, and leadership training.

To get started, check out the following resources:

The Coalition to Back Black Businesses is a collaborative effort to drive change within the Black business community by providing short-term relief and supporting the long-term success of minority-owned businesses. In partnership with American Express and various organizations, the Coalition plans to provide over $14 million in grants, training, and resources to empower Black-owned small businesses within the next four years.

Harlem Capital is a pioneering venture capital firm that specializes in seed-stage and tech-enabled startups with a strong commitment to empowering minority and women founders. They aim to reshape the entrepreneurial landscape by backing 1,000 diverse founders over the next two decades.

Harlem Capital has introduced "culture carry", where founders can divide one percent of the fund's carry, creating a collaborative ecosystem where each founder's achievements benefit the entire community. They currently manage $174mm across two funds.

Harlem Capital makes investments of $250k to $1mm in Seed and Series A companies, focusing on investing in minority and women founders in the U.S. If you meet the criteria and are interested in jumpstarting your business, you can fill out the Harlem Capital Investment Form.

Here are the key criteria for Harlem Capital's investments:

If you're a Black entrepreneur in need of funding, there are several startup grants available to help you get started. The SoGal Foundation's Black Founder Startup Grant provides $10K and $5K cash grants to minority business owners, with a focus on supporting Black women and nonbinary entrepreneurs.

The Black Founder Startup Grant aims to provide business financing to Black women founders, who are one of the fastest growing demographics of entrepreneurs yet often face funding barriers. If you're a current Black women business owner or have a scalable business idea, you can apply for the SoGal Black Founder Startup Grant.

The Google For Startups Black Founders Fund provides over $150K in cash awards and hands-on support to help Black entrepreneurs build and grow their businesses. Recipients also receive up to $100K in Google Cloud credits, hands-on mentorship, and leadership training.

Here are some startup grants that you can consider:

These startup grants can help provide the necessary funding and support for your business to succeed. Be sure to check the eligibility requirements and application deadlines for each grant to ensure you're on the right track.

This year is on pace to set a new nadir for funding to Black founders, with a combined total of $351 million for the second half of last year and the first half of this year.

Last year's funding totals for Black founders were already low, but this year is shaping up to be even worse.

A few big rounds in the second half of the year could potentially flip the numbers, but deal flow is also slowing down for Black founders, making those rounds seem unlikely.

The total of $351 million is a significant drop from last year's funding, and it's unclear if it will be surpassed in the second half of the year.

It's worth noting that even half-a-billion dollars is a relatively low amount compared to the funding totals for other founders.

Here's an interesting read: What It's like to Be Black in Naperville?

The Coalition to Back Black Businesses is a collaborative effort to drive change within the Black business community by providing short-term relief and supporting the long-term success of minority-owned businesses.

Over $14 million in grants, training, and resources will be provided to empower Black-owned small businesses within the next four years, thanks to the partnership between the Coalition and American Express.

You can still prep for the next round of grant applications, but keep in mind that the 2022 grant period is currently closed.

A total of $5,000 grants will be distributed to applicants each fall from 2020 through 2023, followed by mentorship and training.

A select few will receive $25,000 enhancement grants the following summer.

ROBS, or Rollovers for Business Startups, is a financing option that's gaining popularity among entrepreneurs.

Debunking myths about ROBS can help you understand its benefits. Debunking 13 of the Biggest Myths About ROBS reveals the truth behind common misconceptions.

Considering ROBS for your business requires careful evaluation. Answering these 5 questions first can help you determine if ROBS is right for you.

Here are some financing options to consider:

If you're interested in ROBS, you can prequalify now to see if you qualify for debt-free business funding.