Top Funding Resources for Minority-Led Startups

As minority entrepreneurs we sometimes face our own, unique set of challenges. One of the biggest challenges is funding, with 97 percent of startup venture capital going to white males. But, the reality is that there need to be more businesses led by minorities, specifically Hispanic, African-American and females, where the gap is the greatest. Minority-owned businesses produce more than $400 billion dollars in revenue annually, and they are responsible for creating $2.2 million jobs.

According to a study by CB Insights, only 1% of companies owned by Hispanic and African-American entrepreneurs receive venture capital funding. By not supporting them, there’s a large market that is virtually untouched and underrepresented.  However, there is some hope as there are several funding resources that are making a concerted effort to give minority led business a chance.

Venture Capital Firms That Invest in Minorities

Although the faces of venture capital tend to be those of older, white men, there are several that are making it their mission to build a startup world that is a more accurate reflection of the real world.

• 500 Startups – The global VC firm has a record of investing in …They have one of the most diverse executive teams for a firm. (They also have an accelerator program.)

• Social Capital – Founded by the outspoken diversity advocate and venture capitalist, Chamath Palihapitiya, Social Capital’s vision is to invest in innovative startups━no matter the race, gender, religion or other affiliation. (Portfolio includes: Slack, Brilliant and Netskope.)

• UpFront Ventures – Another of the few VC firms that has a diverse team and portfolio. They have invested in companies like: ThredUp, Loot Crate and Tristan Walker’s Walker and Company.

Enterprises with investment arms have also devoted funds to support minority entrepreneurs. Intel Capital has one of the largest funds at $125 million. Comcast Ventures has a $20 million fund while Apple and Google have set up multi-million dollar funds towards inclusion.

Remember, it is not only the firm that matters, it’s the individual investor. When searching for investors, look at their portfolio and see what they have invested in already. Twitter, LinkedIn, or blog channels will likely reveal their interests and passions.