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Section 6


We explore the financial side of these companies and unravel whether or not traditional funding paths are also avenues for them and if so, which ones and to what monetary extent.

We learn that black founders are their own friends and family round. Self-funding an average of £14k compared to the £9,500 average they raise from Friends and Family (47% more) tells us how a very standard ‘first cheque’ and funding source for the average founder isn’t equally available to them and how much further these founders have to take their companies themselves.

A Caribbean proverb

He who does not seize opportunity today, will be unable to seize tomorrow's opportunity


How Much Have They Raised?

The total capital raised through investment by 80% of the founders is

, with the remaining 20% bootstrapping their businesses.

The average amount raised is



Money doesn't ask ask its fellow money where it comes from.


Self-Funding and the Family & Friends Round?

88% of the founders self-funded part of their ventures. Eighty-eight.

On average, founders self-funded

, which suggests that a mix of other financing alternatives still comprise the bulk. The largest sums, £104k and £110k of self-funding are quite a jump from £50k, in 3rd and 4th place. These amounts are exceptional, as the bulk, three-quarters of contributions, remained between £1k and £50k.

What’s also interesting is that self-finance among these black founders was not synonymous with ‘family and friends round.’ Only 22% of Black founders relied on friends and family for early financial support - precisely 25% of the amount who self-funded their venture. Only one of our founders who raised money from friends and family didn’t self-fund their venture.

On average, founders raised

from friends and family. Friends and family rounds have traditionally been a way to quickly kick-start ventures without having to gain early, if any, traction.
It saves founders having to pitch external investors, where a lot of time is consumed, and rejection faced so it could be perceived that 78% have started without the advantage that many others have.


Black Founders and Grants

A similar trend is apparent from the lack of reliance on grants. Only 23.3% of Black founders received grant funding for their early-stage startup,

a total of

The average grant was


Black Founders and University Grants

University grants fared even lower, at 15% and a total of


A Ghanaian Proverb

You become wise when you begin to run out of money


Black Founders and Angel Investors


Angel investment is by far the most popular form of funding amongst our founders.

28% of founders received funding from angels, 6% more than those who received venture capital funding. A smaller 18% of Black founders reported receiving investment from angel syndicates, for a total of £807,000.


Black Founders and Venture Capital


22% of the founders secured venture capital totalling £2.3m.

This is nearly double the investment secured from angel investors and angel syndicates to finance fewer startups.


Black Founders and Startup Loans


Startup loans, guaranteed by the government, appear to be the next popular commercial avenue for Black founders (14%) after angels, syndicates and venture capital.

As positive as it is to have accessible capital, a Startup's loan is a personal debt which has to repaid regardless of the financial status or success of the company.


Black Founders and Crowdfunding

8% of founders used crowdfunding to raise £140k.


Angel Syndicates, Banks & Family Offices

18% of Black founders received funding from angel syndicates, banks, and family offices.

A Gambian proverb

If your only tool is a hammer, you will see every problem as a nail


The Diversity of Investors Currently Investing in Black Founders in London

The number of investors, currently invested in this cohort of Black founders is 159. Their diversity is telling as it further reinforces the need for consistent efforts in the investment community to review their outreach, hiring policies and unwavering commitment towards investing in a more representative workforce.

38% of investors currently investing in Black founders are people of colour. Black investors are more than a quarter of investors, with female investors comprising a fraction less than a quarter, at 25.79% and 24.53% respectively. Investors from the LGBTQIA+ community are one-twentieth of the total with Asian investors at 6%.