Despite myriad flaws, the US remains the top spot for black startup founders seeking venture capital dollars • TechCrunch
Despite, well, everything, the United States is still the best place in the world for black startup founders to raise funds. The check sizes are larger, the market more mature, the ambition oversized. There are more funds, more options, more opportunities, more, more, more.
It’s easy enough to rehash the dismal funding and often discriminatory treatment black founders receive in the United States. Through the haze, however, the reality is that the heart of the American Dream still beats.
For example, Lotanna Ezeikea serial founder, said he was looking to raise money for his new startup in the US, despite raising over $1 million for his UK-based fintech, XPO.
“Across the pond in the UK, reflection tends to be very limited, particularly at the seed stage,” he said, adding that a seed in the UK is a pre-seed or family round in the United States.
“I think it’s because of how small the UK is compared to other regions, so the mind can only dream so big. It’s really a spiral – less wealth, less capital , fewer ideas that become unicorns.
Cephas Ndubueze from Germany echoed similar sentiments. He said he always looks to the United States to find venture capital funds for his startup because there are more black founder success stories in the United States than in Europe, which means he was more likely to find his own way compared to Germany.
“I can definitely say that the United States is a better environment for black founders,” he told TechCrunch. “Why? More diversified investors in the US More investors are investing in non-traditional businesses. More institutional investors are offering tickets ranging from $100,000 to $500,000 at the idea stage, more opportunities to build a network of founders and more investors who have invested in black founders in the past.
While the reception of black founders may seem warmer in the United States, the numbers show more of the same. (France and Germany do not track racial data, although founders and venture capitalists interviewed by TechCrunch revealed anecdotal evidence of persistent racism in both markets.) As a result, founders look to the United States for networking opportunities.