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African Americans Only 1% of Internet Start-up Founders


Black Web 2.0 has written about the importance of securing funding for Internet start-ups at various stages from the great idea to contracting the know-how to build it to the launch.
Private investment research firm CB Insights has released its first ever Human Capital Venture Capital report. In part one of the report, the company takes an in-depth look into characteristics of the founders of venture-backed companies including race, age and experience, and the number of founders per company. The study covers the first six months of the fiscal year (Jan-Jun 2010) and focuses on Internet companies that secured their first round of funding. To further narrow the study, the geographical locations are focused on The Big Three  in Internet funding: California, Massachusetts, and New York.
According to the report:
  • African Americans make up 1% of Internet company founders nationally.
  • The majority of the black founders were part of an all-black founding team. As far as mixed raced founding teams, New York led the pack with 14% with California and Massachusetts bringing up the rear with a close 13%.
  • The median amount of funding secured by an all-black founding team was $1.3 million, compared to $2.2M for a racially mixed team, and $2.3M for an all-white team.
  • Asian teams secured the most funding with a median range of $4 million dollars.









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