Tuesday, 27 February 2024

VC funding decline hits Black startup founders disproportionately hard

Plus, how to nurture a 'happy family' so your startup succeeds

February 27, 2024

Hi, Agen. Venture funding to Black-founded U.S. startups last year failed to reach even $1 billion for the first time since 2016, Crunchbase data shows, and greatly outpaced the overall decline in startup funding felt by all companies. Today, we look at why Black startup founders are being especially impacted by the venture funding slowdown — and what it means for racial parity in startup entrepreneurship. Plus, with research suggesting founder feuds are among the most common reasons startups fail, here’s how to nurture co-founder and executive relationships that set your company up for success.

📉 VC funding decline hits Black founders disproportionately hard

Black-founded startups in the U.S. last year received only $705 million in venture funding, marking the lowest amount such companies received — as well as the smallest share of the venture market — in seven years, Crunchbase data shows. We speak with those in the know in the industry about what’s going on, and what needs to change.

😬 These unicorns haven’t raised funding in 3+ years

If you’re the CEO of a unicorn startup that hasn’t raised fresh cash in several years, you’re probably feeling a bit anxious these days. Using Crunchbase data, we identified a sample set of 28 private companies that had a peak valuation of $1 billion or more but haven’t raised a round for years.

Related Crunchbase Pro list: Unicorns Last Funded Over Three Years Ago

🏅 Bezos, Nvidia reportedly back biggest deal of the week

A humanoid robot startup made a late arrival into last week’s top 10 startup deal ranks, reportedly landing a $675 million round that includes Jeff Bezos and Nvidia among its backers. All told, more than a half-dozen U.S.-based startups raised $100 million or more last week, with rounds split across several verticals including energy, healthcare and AI.

See also: The Crunchbase Megadeals Board

🤗 How to nurture a ‘happy family’ so your startup succeeds

Research suggests that 65% of startups fail due to founder feuds, which is why many seed investors say their job can seem eerily similar to that of a marriage counselor. So, how to achieve interpersonal harmony at your startup? Investor Saanya Ojha of Bain Capital Ventures discusses two of the most important “happy family” factors for all startup founders to consider.

🚧 Why VCs are betting robots will build your next home

Investors have spent hundreds of millions of dollars to back startups working on construction robotics in recent years. The pitch from startups — that they can save time, money and risk by automating repetitive tasks — seems an easy sell given widespread construction labor shortages and rising building costs.

Related Crunchbase Pro list: Construction Robotics Companies Last Funded In 2022-2024

Get more with Crunchbase Enterprise

Find out more about Crunchbase’s prospecting software that enables your entire team to find the right companies, identify the right people, and connect with the decision-makers who can move deals forward – all in one solution.

Recent Investments

Figure

$675M / Venture Round

Figure Robotics is an AI robotics company that is building a multi-purpose humanoid form robot.

Categories:

Artificial Intelligence (AI) • Machinery Manufacturing • Manufacturing • Robotics

Founders:

Brett Adcock

Investors:

Align Ventures, Aliya Capital Partners, Amazon + 12 more

BigID

$61M / Venture Round

BigID is a data intelligence company that helps organizations discover, manage, and protect sensitive information.

Categories:

Artificial Intelligence (AI) • Big Data • Cyber Security • Risk Management • Software

Founders:

Dimitri Sirota, Nimrod Vax

Cult.fit

845M INR / Series F

Cult.fit is a health and fitness company offering digital and offline experiences across fitness, nutrition, and mental well-being.

Categories:

Apps • Fitness • Health Care • Wellness

Founders:

Ankit Nagori, Mukesh Bansal

Investors:

Valecha Investments (Lead), Exceed Entertainment, Gul Advani + 6 more

More Fundings

Company Amount / Round Lead Investor
Retik Finance $32M / Initial Coin Offering -
Apica Unknown / Venture Round Riverside Acceleration Capital
All Recent Funding Activity

Recent Acquisitions

CSR

Pending acquisition by Saint-Gobain for 4.5B AUD

More Acquisitions

Company Acquired By Amount
Viridis Energia Fnm 80M EUR
All Recent Acquisition Activity

Discover innovative companies and the people behind them.

Follow Us on Crunchbase View Jobs on LinkedIn Follow Us on Twitter Like Us on Facebook

564 Market St, San Francisco, CA 94104
© 2024 Crunchbase Inc. All rights reserved. Privacy Policy | Terms of Service

Unsubscribe from Crunchbase Daily.

No comments:

Post a Comment