In the United Kingdom, the impact of the venture capital landscape’s downturn is evident among Black founders, as they secured a mere 0.95% of the total venture investment in the country this year. This amounts to approximately $165 million out of the overall $17.3 billion invested, as revealed in a recent report by Extend Ventures. This figure marks a decline from the percentages recorded in 2022 and 2021, where Black founders secured 1.02% ($316 million of $30.88 billion) and 1.13% ($454 million out of $40.03 billion) of venture investments, respectively.
The diminishing share of investment for Black founders appears to be part of a consistent trend since 2020, the year marked by the tragic murder of George Floyd, which triggered global advocacy and increased pressure to support the Black community. The decline in the allocation of investment to Black founders can be attributed to the broader venture capital downturn observed in the past two years. This trend underscores the persistent challenges faced by Black entrepreneurs in accessing financial resources and support, despite the heightened awareness and advocacy efforts following the events of 2020.
