Entrepreneurs from black and ethnic minority backgrounds are being excluded from venture capital funding, research has found.
Only 1 per cent of founders who receive seed funding identify as black, according to a comprehensive report by Cornerstone Partners, an angel network focused on investing in black and diverse founder led businesses. It found that only 3 per cent of VC-funded founders identified as black and only 2.9 per cent were Asian.
It added that three quarters of founders come from advantaged socio-economic backgrounds and hardly any founders come from families living on welfare entitlements.
“The data suggests that ethnic minority founders who are successful at raising seed capital are still often excluded at the pre-VC and VC stage of funding. Thereafter, they are subsequently underserved