Q2 2024 Black Venture Data Report: Tracking Progress and Gaps
At HBCUvc, we recognize that what isn’t measured often goes ignored, especially when it comes to tracking progress in venture capital. In today’s political landscape, where issues of equity and inclusion can be sidelined, it’s more important than ever to lean into consistent reporting. The Q2 2024 Black Venture Data Report plays a crucial role in providing a clear snapshot of where venture capital is flowing and the gaps that remain. By reporting on these trends, we remain committed to both tracking progress and highlighting areas where progress has stalled, all in the pursuit of driving meaningful change within the venture capital ecosystem.
The Landscape: Black Entrepreneurs in Q2
In Q2 2024, Black-led tech ventures raised a total of $201 million across 41 deals. On an individual level, we celebrate the determination and ingenuity of the Black entrepreneurs making progress within our current landscape. However, when viewed in its entirety, the data exposes the deep inequities that persist within the venture capital industry. These deals represent just 0.4% of the $55.6 billion invested in Q2, and based on current trends, Black-led ventures are on track to receive less than 1% of total venture funding by the end of the year. This comes just four years after many firms publicly committed to DEI initiatives following the tragic murder of George Floyd. The numbers are a stark reminder that those commitments have yet to translate into meaningful, sustaining change.
Key Insights from the Report
Here’s what we learned from Q2’s data:
Active Black Tech Ventures: We analyzed 942 Black-led startups and reviewed publicly available data on their fundraising efforts.
Industry Focus: AI, Healthcare, and Fintech are at the forefront, with 13 investments in AI alone.
Stage of Growth: Many of the deals remain concentrated in the earliest stages of growth, with 54% of the deals being pre-seed or seed-stage. Only 17% of Black-founded companies that raised in Q2, raised a Series A round, a significant gap compared to the broader market, where 37.7% of all Q2 deals were Series A.
Geographic Highlights: New York City stood out as a key city for Black-led startups actively fundraising, where 29% of all investments in Black-led startups in Q2 were located in New York City. Other cities like Los Angeles, Chicago, and San Francisco also demonstrated Black venture activity, but New York remains the most prominent hub.
Download the full report by completing the form below
