At Harlem Capital, we are focused on investing in minority and women founders; two of the most underserved groups. Three years ago we began mapping this ecosystem after realizing that databases like Pitchbook and Crunchbase don’t track founders by race. Our 2018 report resulted in dozens of in-bound traffic from founders who we’ve included in our findings. Our 2019 report includes 200 diverse founders who have raised $1mm+ of venture funding. Below are some of the key findings from our research. Additional details can be found in our full 2019 report.
This year we saw an increase in diverse founded companies based outside of the Bay Area, New York City, and Los Angeles. Leading the pack were Atlanta, Boston, DC and Chicago representing almost a quarter of all companies founded. We also saw Latina founders increase by 41% and African American men increase by 20%. Collectively, women founders are down from 54% to 46%. Seed funding remained the majority of the latest funding rounds, growing from 50% to 53%. Although there weren’t any major changes from an industry standpoint, there was a wider range of series raises signaling greater success with founders beyond the seed round. Finally, we saw two new investors enter the top-12 with Cross Culture Ventures and First Round Capital, having at least 8 diverse founders in their portfolios.
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To see the full report with the list of 200 founders please visit the Harlem Capital website.
Main Image: Robert Reffkin, Founder & CEO at Compass