BLCK VC Launches Initiative for Black Entrepreneurs in Investing

The challenges faced by Black founders in Silicon Valley are well-documented, as only a small percentage of venture capital funding goes to people of color. BLCK VC, in collaboration with Operator Collective, Salesforce Ventures, and Berkeley Haas School of Business, is working to address this disparity with the launch of the Black Venture Institute, an educational program designed to empower Black professionals to become angel investors.

This initiative aims to train 300 individuals over the next three years, building a robust network of Black investors and advisors capable of providing crucial funding. This represents a concerted effort by these organizations to enact substantial change within the existing investment landscape. BLCK VC was initially established in 2018 with precisely this objective in mind.

Frederik Groce, a principal at Storm Ventures and co-founder of BLCK VC, emphasizes that venture capital suffers from a significant accessibility issue, and this program is intended to dismantle barriers within exclusive networks.

“These exclusive networks have historically contributed to limited opportunities for the Black community. The Black Venture Institute is a deliberate strategy to establish access for Black professionals – encompassing roles from engineering to product marketing,” Groce explained to TechCrunch.

He further clarified that the program’s purpose is to equip these professionals with the understanding and resources necessary to participate in the venture capital ecosystem. “Our goal is to provide Black technologists and tech professionals with the knowledge and tools they need to navigate the industry and potentially contribute as scouts, limited partners, angel investors, or even transition into careers within the field.”

Leyla Seka, an investment partner at Operator Collective, explains that the program will offer a comprehensive curriculum to educate Black entrepreneurs on the core principles of venture investing, facilitated by a team of seasoned experts who will demystify the intricacies of the system.

“Gaining familiarity with the terminology, understanding the procedures, and building relevant connections requires time. While some individuals benefit from inherent exposure to this world, others require additional support to gain a foothold,” she stated.

Salesforce Ventures, having recently unveiled a $100 million Impact Fund focused on cloud startups driving social impact, affirms that supporting this venture aligns with the firm’s deep commitment to social justice.

“Without proactive measures, we risk perpetuating the same exclusionary patterns that have historically resulted in underrepresentation. We believe that by broadening access to venture capital knowledge and networks, we can empower the Black technology community and foster innovation, opportunity, and inclusivity,” the firm communicated in an official statement.

To illustrate the obstacles confronting Black founders, a 2018 Harlem Capital Report revealed that between 2000 and 2018, only 105 companies with exclusively Black founders secured funding of $1 million or more. These statistics underscore the existing inequalities in funding and highlight the critical need for initiatives like this one.