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Crunchbase: Black US founders raised around 1%, or an estimated $2.254B, of the total US venture capital raised in 2022, down from the record 1.3% in 2021

TechCrunch Dominic-Madori Davis

Context & Ripple Effects

This report closes a three-year arc that began when Crunchbase found only $1B of roughly $150B in 2020 US venture funding went to Black founders — the low point that triggered the industry's post-George Floyd funding commitments. The 2021 record 1.3% share looked like those commitments taking hold; the 2022 slip back to ~1% ($2.254B) suggests instead that the peak tracked the overall funding boom more than durable reallocation.

Why it matters: the denominator collapsed in 2022 as US venture pulled back broadly, and the follow-on data confirms the slide steepened rather than stabilized — [[a:849847|2023 funding to Black-founded startups fell to $705M across just 191 deals, under 0.5% of all venture funding]].

First-order effects

  • Black US founders fundraising in 2023 enter a market where both sides of the ratio moved against them: the estimated $2.254B raised in 2022 reflects a smaller absolute pool even before the broader venture downturn bites fully.

Second-order effects

  • Capital concentrated in niches where mandate-driven money still flowed — [[a:834702|US Black Web3 founders raised $60M in 2022, nearly quadruple 2021's $16M, even as total Web3 funding fell 39%]] — pushing founders toward whatever sectors still had committed diversity capital.

Third-order effects

  • If the pattern holds, 2021 marks a cyclical peak rather than a new baseline, and the share reverts toward its pre-reckoning sub-1% level absent changes in who controls check-writing — which is exactly what the quarterly trackers showed next, with Black founders at $39.7M, or 0.13% of startup capital, in Q3 2023. Crunchbase's annual and quarterly share figures become the standing scoreboard the industry is judged against.

The trend: US venture allocation to Black founders spiked with the 2021 funding boom and is reverting toward its pre-2021 sub-1% baseline, with sector niches like Web3 only briefly offsetting the slide.