SXSW 2024
The Friends & Family Round for Under-Represented Founders
Description:
You may be familiar with the Black funding epidemic (~1% of VC to Black founders), but did you know that the Friends & Family (F&F) round is the largest inhibitor to this gap?
Given the racial wealth gap, thousands of Black founders can’t access the F&F round ($23k), making it the largest inhibitor to the Black funding epidemic, where only ~1% of VC goes to Black founders (FifthStar Funds: https://www.fifthstarfunds.com/racial-wealth-gap).
This session will address the importance of the F&F round for under-represented founders and propose solutions to addressing the racial wealth gap.
Other Resources / Information
Takeaways
- The liquid wealth gap between white and Black American families is 21.8x. The funding gap is 21.2x. This is no coincidence.
- When founders do not have access to the F&F round, it impacts the disparity of subsequent funding rounds, leaving Black founders behind.
- If founders can access the F&F round and matriculate through exits similar to white companies, we believe over $5.2B in Black wealth can be created.
Speakers
- Stella Ashaolu, Co-Founder, FifthStarFunds
- Britney Robbins, Founder & CEO, The Gray Matter Experience
- Joey Mak, CEO, Chicago:Blend
- Tim Huelskamp, Co-Founder, FifthStar Funds
Organizer
Nicole McCarthy, Director Of Innovation & Venture Strategy, World Business Chicago
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