Venture funding to Black startup founders fell to 0.32% of U.S. total in 2025, down more than two-thirds from three years prior

In 2025, $942 million — or 0.32% of total U.S. venture funding — went to startups with a Black founder or co-founder. So far in 2026 (as of May 20), $643 million has been raised by U.S.-based startups with Black founders or co-founders across 34 deals, with the majority raised in Q1 2026, marking the most raised in a single quarter since Q2 2022 ($653 million).

The 2026 total includes a $350 million Series E round by SambaNova (an AI chip startup co-founded by Kunle Olukotun in 2017) in February, which has raised $1.5 billion in known funding total. Other notable rounds included Novig's $75 million Series B, Harper's $47 million Series A, Posh's $37 million Series B, and GovDash's $30 million Series B.

The sharp decline contrasts with 2021, when investment in Black startup founders hit $5.2 billion, representing 1.5% of U.S. venture funding at that time. Henri Pierre-Jacques, managing partner at Harlem Capital, attributed the decline to a shift in the political environment, with fewer conversations on the topic as many are afraid to speak on it directly.