Will crowdfunding lead to more diverse entrepreneurs? Renee King says it’s the most significant key, and it’s why she founded FundBLACKFounders. This platform was created to open up access to capital for black entrepreneurs and provide them with culturally relevant coaching. King says that funding black founders is important because there are specific problems that need a diverse approach. Women and men have different obstacles; all races face different challenges. Similarly, black entrepreneurs have ideas and solutions specific to their culture and community. King shares her vision for diverse crowdfunding with Bold TV.
Why Invest in Black Entrepreneurs?
Funders should seek out diverse investments because researchers have found discrepancies in household wealth. Between 1983 and 2013, White households saw their wealth increase by approximately 14%, but black and hispanic households saw their wealth decrease. Some say this gap reveals a difference in access to resources such as banking and loans. Entrepreneurship is a great way to increase the wealth of these minorities, but how can they start businesses without funding? This need is the focus of FundBLACKFounders.
The Future of Crowdfunding
This platform launched weeks ago, at the end of January for Black History Month, and they have already raised $10,000 for their founders. The main obstacle for entrepreneurs is gathering people around your vision. Crowdfunding allows these founders to galvanize a community around them, and, then, the group propels the idea forward. While some may believe the future for diversity is dismal, the success rate for diverse founders in crowdfunding is high and continuing to rise. The 2020 Oscar winner for animated short film started off with crowdfunding, so this tool can lead to great success. To learn more about the community of FundBLACKFounders, check out the interview.