20 Angel Investors for black-owned startups

Raising funds for a black-owned startup is usually a problem. In the past, this situation was even worse than it is now because people thought that startups started by black people had little to no chance of succeeding. Of course, no investor would want to plug their fund into a worthless venture; after all, it’s an investment, and the investor enjoys a good return. So, black founders have been made to struggle with little or no means of securing funds to help advance their businesses. 

However, the events of the past few years have proven that black-owned startups with visionary leaders and employees can succeed like the others. It has confirmed that it’s not about the color of one’s skin but by the content as would have been thought by the erstwhile president of the United States, Martins Luther King Jr.

Globally, seeking funding is a challenging yet thrilling experience for those who have the opportunity to pitch their ideas to investors. And if you’re a black founder, you must realize that the odds are more against you than your white counterparts. 

According to the data published by Accenture, only about 1% of the $150 billion in capital made available by investors went to black-owned startups in 2021. This is a huge gap when compared to other races. Also, just like loans, Accenture estimates that “large banks approve about 60% of loans sought by white small business owners, 50% of loans sought by Latino or Hispanic small business owners, and just 29% of loans sought by black small business owners.” This is not to scare you into thinking that finding angel investors for black-owned businesses is impossible, but rather to prepare you for the challenges ahead. 

Anyway, there is a way out. Yes! There is a way out to help you seek the funds you need to build the dream you have imagined.

As the years progress, investors realize that managing a successful startup is way beyond the color of one’s skin. It’s a mindset and attitude backed up by clarity in the right direction.

Today, more than 20 angel investors have proven to be of great help in funding black-owned startups. If you’re a black startup founder, below you will find a list of 20 angel investors for black-owned startups that you can explore.

20 Angel Investors for Black-Owned Startups

There are many angel investors for black-owned startups around the globe, and this article delves into 20 popular Angel Investors, which include;

The Black Angel Tech Fund

The Black Angel Tech Fund team was established in 2015 and is composed of four people with the idea to establish a firm with a strong focus on black-owned startups. The team believes that black entrepreneurs have great potential to build the next big technology company that will change the world if they are supported. 

They have a proven record of supporting black founders with seed funding. Also, they are the investors backing black startups like CEEK VR.

EchoVC Partners

This was founded by the African-born entrepreneur Eghosa Omoigui, focusing on funding black startups across the globe. Today, they have successfully funded over 40 black-owned startups in 12 countries worldwide. 

Harlem Capital Partners

Harlem Capital Partners is a New York-based firm with a team of seven investors, a portfolio of 48 investments, and a presence in 13 cities and three countries worldwide. Harlem Capital Partners has positioned itself as a strong angel investor for black-owned startups. 

The firm is on a mission to invest in 1,000 entrepreneurs from diverse cultures for the next 20 years. And one of its philosophical statements, which assures black-skin entrepreneurs of their willingness to invest in them, reads: “We believe it’s important for founders to know there are people who look like them willing to invest in and support them and for the next generation to know that they too can be successful in VC.”

Base Venture

The firm was established in 2013. They invest in black startups both at the seed and pre-seed stages. Base Ventures have raised over $531 million in revenue and have backed 136 founders in different countries. Base Ventures prides itself on being in the business of investing in startups for more than 20 years.

Fearless Fund

Fearless Fund is a venture capitalist firm with a solid knack for funding startups owned by women, especially women of color.  It funds startups at the pre-seed level and seed level. Since its inception, Fearless Fund has supported over 30 startups owned by women. 

Backstage Capital

Backstage Capital is happy to serve as an angel investor for black-owned startups. The firm’s managing partner, Arlan Hamilton, stated they are interested in investing in the best entrepreneurs who identify as people of color, women, and LGBTQ. 

DiverseCity Ventures

DiverseCity Ventures was founded by Mariah Lichtenstern and has a proven track record of investment portfolios. This firm has a deep philosophy rooted in accommodating tech-based startups that have a tremendous potential impact on culture, society, and economy; that’s startups that are committed to impacting any of the above and must be technologically driven as they don’t accept startups that are solely brick-and-mortar. 

Hence they describe themselves as an “impact-oriented” investing in pre-seed tech-driven startups. Also, they pay close attention to a culture of diversity and inclusiveness. So, if you’re a black startup founder seeking funding for your next big-technology idea, they are happy to welcome you onboard.

Precursor Ventures

Precursor Ventures is a firm brand name in the VC space. It has a long history of supporting black-owned startups. However, the firm strongly focuses on startups in North America, Mexico, and Canada, and its opportunities are open to other startups from other countries. In pre-seed, they are willing to part ways with $250,000 and up to $1,000,000. Also, they are open to first-time founders. It has supported over 40 brands in its early seed funding. 

Cleo Capital

The firm has funded many known startups and is always willing to listen to black founders pitch their brands. However, they are restricted to investing in startups within the following categories: Future of Income, Consumer Fintech, Legal tech, Real Estate tech, Insurtech, Health tech, and Decentralized Enterprise. 

Project Include

It’s a non-profit VC focusing on the management and CEOs of startups. Project Include is friendly to black-owned startups. Its mission is to give everyone in the tech space a fair chance to succeed by providing funding to startups.

Hadiyah Mujhid x HBCU Ventures

This VC is a non-profit open to all black founders to pitch their ideas. They have a strong philosophy that nothing is more substantial than a community that invests in its people. 

Impact America Fund

This VC is open to black founders. They firmly believe that people from underserved communities have a personal grasp of their unique problems and are most likely to solve them. Hence, they are committed to investing in underrepresented people of color. 

Reach Capital

Reach Capital’s founders only want to invest in ed-tech businesses that make a real difference in education, whether at school, home, or anywhere else. 

Rough Draft Ventures

The name suggests their mission: to invest in “rough draft” startups. They believe that for any entrepreneur to achieve tremendous success, the entrepreneur must take a risk, and they are willing to fund the draft with up to $25,000 in funding. 

500 Startups

500 Startups is another excellent firm for black founders to pitch their ideas. It has invested in more than 500 startups in 74 countries. 

MaC Venture Capital

This VC firm is an early-stage venture capital firm. Over the years, it has supported black-owned startups and has over 40 startups under its watch.

Serena Ventures

This venture was started in 2014 by Serena Williams, the world-renowned tennis champion. It’s open to funding startups from people of diverse cultures, including black-skinned entrepreneurs.

Code2040

Code2040 is a VC co-founded by Laura Weidman Powers to help underrepresented minorities succeed with their startups. And it’s open to black founders to pitch their ideas.

Collab Capital

As the name suggests, Collab Capital is a VC leveraging financial, human, and social capital to assist startup owners in building sustainable, technology-enabled businesses. The firm is led by three black entrepreneurs; Jewel Burks, Justin Dawkins, and Barry Givens.

PS27 Ventures

PS 27: This is a black-owned venture capital firm. It’s based in Jacksonville, Florida, and its goal is to provide funding for startups in e-commerce, health tech, fintech, and SaaS, with a portfolio of more than 15 companies.