The Big Story: Celebrating Black founders, calling for a more equitable ecosystem
Black startup founders across the country are a crucial part of the startup ecosystem, despite the many barriers they face. As Black history month draws to a close, Engine wanted to recognize some of the important contributions of Black founders in our network and urge policymakers to advance policy solutions that create more opportunities for underrepresented founders, especially Black founders.
Diverse teams generally produce superior outcomes, with studies showing that racially and gender diverse teams are 33 percent and 21 percent more likely to be profitable than their less-diverse peer teams, respectively. And Black startup founders are among those poised to take on some of today’s biggest challenges. For example, Robert Buchanan of Adhere Gear is creating IoT solutions for the shipping industry as the world continues to grapple with unprecedented supply chain challenges; Thomas Dawson of Pruve Systems is “bring[ing] together artificial intelligence, blockchain, and inclusive biometric technologies in order to create secure ways to engage in business online;” and Wole Coaxum of MoCaFi is crafting fintech solutions to close wealth gaps in the country.
But to realize the benefits of a more inclusive innovation ecosystem, we need to dismantle the many unwarranted barriers to entrepreneurship that Black founders face. Fostering and creating an inclusive, innovative framework was crucial for Renee King when she launched FundBlackFounders, an organization that crowdfunds for Black entrepreneurs to lessen the burdens they can face accessing capital. But, as Renee discussed with us recently, it’s not just about “financial capital, but social capital, intellectual capital”—elevating Black founders to greater success also requires connections to a community that is equipped with the right tools. This week, FundBlackFounders for the second year, announced its partnership with the JLH Social Impact Fund and Kinship Advisors to provide $1 million in grants to Black-led nonprofit organizations and Black-owned businesses.
Relatedly, Safi Mojidi launched Hacking the Workforce—an organization aimed at increasing visibility and retention of Black LGBTQ individuals in leadership positions within cybersecurity and tech. As Safi noted in our interview with him last year, “our goal is threefold: achieve visibility and increased representation for Black LGBTQ cyber practitioners, create resilience and sustainability in the workforce through training and nurturing individualized mental health needs, and normalization of financial well-being.” This is critical, as it “takes people of all different backgrounds to determine if a specific technology or specific use of technology makes sense. One of the biggest risks to cybersecurity right now is a lack of diversity of thought.” Towards the end of last year, Hacking the Workforce announced its partnership with The Linux Foundation to provide 30 scholarships for Linux Cloud Security training and certification.
Every startup founder, no matter where they live or what they look like, should have a chance to succeed. But there are still wide gaps that underrepresented founders face. From the lack of Black investors—studies indicate over 80 percent of venture capital firms lack a single Black investor—to Black founders making up only 1 percent of venture backed startups, there is still much work to be done. Policymakers must recognize that a fair, diverse, and equitable startup ecosystem is not only the right thing to strive for, but necessary to bolster economic growth and prosperity for the U.S. Through conversations with these founders and others, Engine has identified various efforts policymakers can and should take to bring equity to the space. Until then, as Thkisha Sanogo, founder and CEO of MyTaask, has explained—as a Black woman founder, she will continue to “show up and keep showing up and make sure people recognize how important it is for us to be part of the conversation."
