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# Drop In Venture Funding To Black-Founded Startups Greatly Outpaces Market Decline
- URL: https://werd.io/drop-in-venture-funding-to-black-founded-startups-greatly-outpaces-market/
- Published: 2024-02-27T14:50:39.000Z
- Updated: 2024-02-27T14:50:39.000Z
- Author: Ben Werdmuller
- Tags: NotableLinks, #Import 2025-06-13 09:20

"The decline in capital to Black-founded companies greatly outpaces the overall decline in startup funding. While total venture dollars in the U.S. fell 37% last year, funding to Black-founded startups dropped a staggering 71%, according to Crunchbase data."

As the piece points out, this may in part be because venture funds are abandoning diversity initiatives. Because so much of venture is based on networks - you usually need a warm introduction to get funded, and some partners pattern-match with founders they've backed before - people from a certain demographic are more likely to be funded.

There was a time when I thought startups were meritocratic; in reality, it tends to be rich, white people funding people from similarly rich, white backgrounds. [#Business](https://werd.io/tag/Business)

\[[Link](https://news.crunchbase.com/diversity/venture-funding-black-founded-startups-2023-data/)\]