In 2024, US startups with Black founders received just 0.4% of total funding, the lowest share in recent years and down more than two-thirds from just three years ago.
According to Crunchbase data, overall startup funding increased to $314 billion last year, but only $730 million went to Black founders.
Which Black startups received the most funding last year?
Twelve picked up a $200 million Series C in September, led by Capricorn Investment Group, Pulse Fund, and TPG. The startup converts carbon dioxide into jet fuel and other practical products. The company also secured $445 million in project financing and credit; the Series C was included in Crunchbase’s annual funding totals.Zing Health provides Medicare Advantage plans to reduce healthcare disparities among historically underserved populations. In September, the startup raised $140 million from investors such as Health2047 Capital Partners and First Trust Capital Partners.Pyka, a startup that develops autonomous electric aircraft, secured $40 million in a February Series B led by Obvious Ventures.Eleanor Health, which provides outpatient addiction treatment, raised $30 million in a February Series D led by General Catalyst.FinQuery, a tool provider for automating accounting, budgeting and forecasting, raised $25 million in an April financing.
Black founders struggling to gain capital
Black entrepreneurs still struggle to gain capital. According to Crunchbase, in 2024, Black-founded startups received just 0.48% of total US venture capital, down from 1.3% in 2021 and 0.5% in 2023. This decline comes as the country faces a vast overturn in DEI initiatives.
A HBCUvc report found that Black-founded ventures received only $201 million in total venture capital funding, displaying 0.4% of overall quarterly venture funding. Some top-funded industries included Artificial Intelligence (AI), Healthcare, and Fintech, led investment activity among Black-led companies.
The report also found a gap in Series A funding, with only 17% of Black-founded deals reaching this stage compared to 37.7% overall. Techstars, Latimer Ventures, Gaingels, Black Tech Nation, and Collab Capital were part of the active investors in Black-led startups.
Image: Wocintech
