Photo: FundBlackFounders
In 2019, entrepreneur Renee King was at a conference for Black entrepreneurs when she heard something that took her aback: “If you can’t raise a friends and family round, what does that say about you?”
An angel investor (someone who invests their own money into a new company) directed this remark at King and about 100 other Black women entrepreneurs. The investor was also a Black woman.
For King, this comment ignores the unique hurdles Black business owners might face.
While a friends and family round is one of the most common ways to raise money for a startup, it’s not always the most feasible option for Black founders, she explains.
She points to the fact that the typical Black family has $2,000 or less in liquid savings, while the typical white family has more than four times that amount.
“Just imagine how challenging that is for a [Black] entrepreneur to now go to their family and say ‘Hey, I have this business and I need to raise this friends and family capital.'”
Read rest of story here.
