6 Startup Investors On What It Will Take To Fund More Black Founders

figure — editor’s note: This article is the third in a three-part series on the state of venture investment to Black-founded startups in 2026. Driving these reports is data from Crunchbase’s Diversity Spotlight feature, which offers insight into diversity in startups’ and investment firms’ leadership teams.

Part 1 explored the data on funding to Black founders, and in Part 2 we spoke with Black founders who became investors.  Crunchbase data tells us Black startup founders still receive only a tiny sliver of venture funding. What the numbers don’t tell us is why investors continue to overlook those entrepreneurs, and more importantly, how the industry can improve the odds for Black and other underrepresented business leaders. To better understand what’s driving the persistent gap — and what it will take to close it — Crunchbase News spoke with six venture capitalists who actively back Black founders about where they believe the ecosystem continues to fall short and how it can improve outcomes. While they offered different perspectives, several themes emerged: Venture firms need to broaden the networks they rely on to source deals, founders continue to face structural barriers long before they pitch investors, and lasting progress will require changes from both investors and entrepreneurs. Expand beyond familiar networks Arianne Kidder, partner at Seae Ventures. (Courtesy photo) Underrepresented founders face distinct pressures as the venture industry retreats to its traditional networks, according to Seae Ventures partner Arianne Kidder, who said the pullback in funding to Black founders overlooks where investors can discover market-outperforming businesses. “The bar for all founders has gotten higher in recent years, and I don’t necessarily think that’s a bad thing,” she said, pointing out that the surplus of capital during the previous market peak meant startups that probably should not have been funded received investment anyway. Still, the subsequent market correction has triggered a familiar defense mechanism among institutional investors, she said. “When things get hard, it’s human nature to revert to what you know and what feels safe,” Kidder said. “Unfortunately, that means back to the same networks, and so there’s been extra pressure on underrepresented founders.” Instead of viewing diversity through a philanthropic lens, Kidder argues that the current environment means venture investors need to look outside of their conventional circles to beat the market. “Alpha is more likely to be found outside that comfort zone in founders who bring different perspectives and solutions to the table, especially in healthcare,” she said. To date, Boston-based Seae has backed nine Black startup founders. Kidder notes that those entrepreneurs, like with the rest of the founders in the firm’s portfolio, bring “extraordinary grit, experience and passion to building sustainable solutions for the market.” David Hornik, partner at lobby Capital. (Courtesy photo) David Hornik, partner at lobby Capital, agrees that venture firms’ existing networks tend to limit who gets funded and he argues that expanding those networks requires deliberate action. To that end, his firm several years ago launched Lobby: Elevate, an event designed to support underrepresented startup founders.