What You Need to Know as a Young, Black Startup Founder

While two-thirds of all U.S. start-ups are likely to fail, the ones that get funding — and a shot at success — are overwhelmingly white (71.6%) and male (88.3%). In 2022, U.S. venture funding hit $198.4 billion, and less than 1% went to Black-founded start-ups. How can young, Black founders overcome these obstacles?

• Yves Perez, founder of Workbnb, advises young founders to focus first on personal branding, networking with people in positions of power, and spreading the word to potential clientele.
• Founders that can generate buzz — on social media, through live events, podcasts, and even group chat — will ultimately reach more investor circles, according to Perez.
• Myron Rivers, founder of Lerch, suggests looking into alternative options if venture capital (VC) funding isn’t successful.
• Private equity, angel investors, crowdfunding, and mezzanine financing are all alternatives to VC funding, but Rivers advises founders do their research in order to choose the best option for their current situation.