|
Listen to this article here
|
It is inappropriate to make generalizations about an entire racial or ethnic group when it comes to their ability to create high-growth businesses.
Entrepreneurship and business success are influenced by a variety of factors, including access to resources, education, mentorship, networking opportunities, historical and systemic barriers, and socio-economic conditions. These factors can impact any individual or group, regardless of race.
It is vital to recognize that individuals within any racial or ethnic group have diverse talents, skills, ambitions, and aspirations.
Many Black entrepreneurs have achieved great success and created high-growth businesses. However, it is also true that historical and systemic inequalities have disproportionately affected certain communities, making it more challenging for some individuals to access resources and opportunities.
Promoting equality and addressing systemic barriers can help create an
environment where individuals from all backgrounds have equal opportunities
to start and grow successful businesses.
New survey shows Black decision-makers are instrumental in overcoming systemic barriers.
Sponsored by Amazon Web Services (AWS) and SVB, the survey looked at 225 Black investors at various stages in their careers, also drawing on other research. (A 2022 survey looked at partner-level investors). In addition, researchers explored the role of Black women in the industry.
Ultimately, the report finds that, for Black investors to make a significant impact in the venture industry, more Black decision-makers need to hold leadership roles at large funds.
Black Athletes and celebrities are also helping by starting their own VC funds and are investing and assisting minorities- and women-led businesses. Serena Ventures, the VC fund started by tennis legend Serena Williams, has made numerous investments in women-owned and minority-owned businesses.
NBA All-Star Kevin Durant’s Thirty5 Ventures and Stephen Curry’s Penny Jar Capital also invest in minority businesses, as do the VC firms started by rappers Shawn “Jay-Z” Carter and Calvin “Snoop Dogg” Broadus.
The clear message: “It’s still a difficult experience to progress in your career as a Black investor,” says Sydney Sykes, BlCK VC cofounder and board chair.
According to Forbes, the number of first-time Black fund managers is growing. Some 28.6% of Black fund managers launched their first fund in the last year. That’s consistent with 2022 findings that the number of first-time Black fund managers is increasing.