• IFEL

Black Founders Face Barriers in Accessing Capital

According to McKinsey & Co. the average black founder starts a business with approximately $35,000 while White founders start with $107,000.

Many founders will tap into their personal or family savings accounts and will reach out to friends and family for an initial investment to help them build their business. Access to capital, whether in the form of loans or venture capital, is essential for the viability of any business. Most business owners need funding beyond their personal savings to help cover start-up costs and have the working capital needed to grow and scale.

The longstanding racial wealth gap h