with CLIPREVIEWED learn the articleBlack Women Tech Founders Deserve Your Investment
Tech startups led by Black women raised $289 million between 2009 and 2018: That’s a mere 0.06% of total venture funding for technology. Despite this, Black women continue to create and grow successful tech companies.
As we reported last year on International Women’s Day, Black women are an untapped market for investment. In October, the Black Women Talk Tech and the Talk Tech Association released the largest published study to date that looks into who Black women tech founders are and the challenges they overcome to build viable businesses.
The report surveyed 671 self-identifying Black women and found that they were high academic achievers, with 39% holding a Bachelor’s degree and 46% with a professional degree (a master’s, JD, MD, or PhD). A majority, 76.1%, were self-funded, with 52% providing more than a fifth of their personal income to their businesses.
These women are concentrated in New York, California, Georgia, New Jersey, and Texas; the largest industries of focus are education tech (9.9%), e-commerce/retail (8.5%), financial tech (6.7%), software as a service (5.2%), and health tech (4.7%).
Technology investors generally like companies with more than one founder, but 70% of Black women founders are solo. That could be one reason they’re denied funding.
But Black women are launching startups in industries that make up $5 trillion in global market value; the opportunity is immense. They also experience growth without having seed funding for marketing: 40% of respondents said their business had paying customers.
They’re passionate about their businesses, as a key indicator of success for 75% of Black women founders is “impact.” And they know how to hustle: 91% are working full time along with starting a business.
All of these indicators “are very tangible signs of how much harder Black women tech founders have to work to create thriving businesses—not for lack of effort or viability, but because the tech industry and investors are not investing in Black women,” the report reads.
The report has a simple call to action for the tech industry: Invest in Black women founders.
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