At Vetted, we believe the next generation of revolutionary companies will be launched by Founders of Color. We are a syndication platform that is connecting investors of color to these disruptive, industry-leading startups of tomorrow.
According to the Diversity in U.S. Startups report, in 2017 about 1% of venture funding went to Black Founders, .06% of which went to Black Women. Similarly, about 2% of Latinx Founders received venture funding, with .4% invested in Latina Founders. Part of the problem is rooted in the lack of diversity on the other side of the table. Additionally, approximately 1.3% of angel investors in the U.S. are black and 2.3% are Latinx. The VC industry isn't much better, with about 2% of decision makers at firms identifying as Black or Latinx.
However, that isn't the entire problem. Within the startup ecosystem for People of Color, there are many challenges. Investors often complain about struggling to get consistent, qualified deal flow that matches their investment thesis, check size, and stage of investment.
This is a problem for any investor, but for Investors of Color interested in finding startups from their communities, there are additional challenges for sourcing and vetting potential investments. For Founders of Color, there is a lot of noise in the investment space. it's difficult to find the right investors with the capital, market expertise, and willingness to invest in their ventures.
The ecosystem is changing.
According to a Harlem Capital Report, almost 200 startups founded by Black and Latinx individuals have raised at least $1MM, which was raised from over 550 investors.
There is a statistic from that report that illustrates one of the key traits in our ecosystem. 12 investors, including Andreessen Horowitz, 500 Startups, Harlem Capital, and BackStage Capital, among others, were invested in about 3/4 of all of those startups. Therefore, the remaining 550+ investors were either co-investors with these top 12 investors or invested in the remaining 1/4 of the 200 startups by Founders of Color
This indicates that there are hundreds of investors that are willing and able to make investments in early-stage ventures, however, they may not have access to the deal flow needed to deploy their capital.
At Vetted, we're bridging the gap between Investors and Founders of Color. Through our syndication platform, we partner with Investors to source, qualify, and syndicate startups that fit their investment thesis.
We are building a community of innovators and investors that are changing the face of the startup ecosystem. Join our movement to be included in the pilot launch this Summer.