Policy Memo #11
DATE

Authors:
Kate Brodock, CEO, Women 2.0

For Black Female Tech Founders, limited savings limits
opportunities to access investment capital
SUMMARY

A recent study by Women 2.0 noted that the most important pre-launch resource for tech start-ups
is having money in savings. Yet in a survey of 111 female tech founders, which included 60 Black
women, tremendous gaps in starting capital between White and Black women were discovered.
Survey results revealed that the majority of Black women founders had access to $1,000-$4,999
pre-launch while the majority of White women founders had access to $50,000+ pre-launch. The
second most common starting capital reported by Black women was $0! For White women, the
second most common starting capital was $1,000-$4,999. Black founders in the study
communicated that having no or very limited starting capital made it difficult to obtain other
investments necessary for growth including credit, venture capital, angel funding, crowd or equity
crowd funding. Without being able to access the resources needed to launch and grow one’s
business despite having proved the fidelity of an idea or product, Black women in tech will continue
to be undervalued, leading to greater inequities in an already White male dominated industry.

OPPORTUNITIES FOR BLACK WOMEN
FOUNDERS

To conclude this study, Women 2.0 outlined
the following potential opportunities for Black
women founders:
• Increase exposure to debt-based
financing that specifically supports Black
women tech founders
• Increase education around alternative
financing, especially equity crowdfunding
and crowdfunding
• Increase access points to start-up space
• Identify additional ways to lower the hurdle
in the beginning stages of product
development

“I anticipated that it would be
challenging but not almost impossible
to get investment from angels and VCs. It
has proven to be much more
challenging than I anticipated. As an
African American woman…I have
discovered that few angels/VC are open
to engaging.”
~ Study Participant

RESOURCES FOR WOMEN OF COLOR
TECH FOUNDERS
• Women 2.0, https://women2.com/
• EnrichHer, https://enrichher.com/

To learn more about this study and the work of Women 2.0, visit
www.women2.com or contact study author and CEO Kate Brodock
kate@women2.com