Discovering how many Black creators have actually successfully raised equity capital, and which venture capital companies bought their start-ups hasn’t been a simple job, historically. Venture capital information is frequently diceable by phase, state, or by start-up type. If you wanted to understand how lots of Black creators a specific company had invested into, that information has been hard to come by.
Until now, that is.
Previously this year, a group called People of Color in Tech assemble what it called “ the most extensive list of US-based venture-backed Black founders ever.” You can check out the information here. It’s an extraordinary document, both for its effectiveness and its brevity. Today the list is just 283 names long, though it appears to be expanding over time.
The exact same group just recently created more information. Now, the exact same public spreadsheet includes information on which venture capital firms have actually purchased Black-founded startups. (The creator list came throughout Black History month, while the VC list was created around Juneteenth, Individuals of Color in Tech wrote; for more on how tech just recently found Juneteenth, head here).
There are more VC companies that have invested in Black creators than there are Black founders who have raised money from VCs. This makes good sense, as there is frequently more than one VC firm in any offered round. While the number of VCs detailed is motivating at first glance, there’s subtlety to the information.
TechCrunch spoke to James Norman, CEO of Pilot.ly, a partner at the Transparent Collective and a factor to the dataset, who told TechCrunch that he was initially “overwhelmed by the large number of financial investments made from 570 different companies,” however that “after one look, approximately 75% of the names had one black founder investment.”
Even more, Norman informed TechCrunch that after reviewing the information he “recognized the majority of the companies on this list are likely follow-ons stacking into single rounds of funding.” That most VC firms on the list of groups that put capital into a single Black-founded startup “highlights the absence of capital released to black founded start-ups in basic” he continued.
Still, having the founder and VC information assembled works by itself. In Norman’s view, the dataset will allow other orgs to consume and parse the information, hopefully yielding useful understanding that was previously occluded.
Sefanit Tades, another contributor to the Black founder and VC lists, informed TechCrunch that reaction to the databases has actually been “overwhelmingly favorable, with a number of people connecting to provide assistance to broaden the list and provide extra data points.” She likewise said that user “feedback is also driving our iterations on The Black Creator List database,” so there need to be more to come from the effort. That’s welcome and interesting.
Silicon Valley likes to say things like “ step what matters.” Well, here’s a list of Black creators and the VCs who have cut one, 2, or more explore their start-ups. It matters that both lists get longer, and we can now measure development.
Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.