While over $137 billion was invested in startups during the first half of 2021, only 1.2% of that total went to Black entrepreneurs, and only 2% went to women-founded companies, according to Crunchbase, an online database of companies and startups.
Angel investments are often the precursor to obtaining venture funding to help a company on the grow-scale-exit trajectory. As capital constraint remains a significant barrier for black founders, the Institute For Entrepreneurial Leadership (IFEL) is addressing the disparity and lack of access to capital through an innovative program, the Making of Black Angels.
The three-part online program will be offered online at 6:30 p.m. on Wednesday, May 11, May 18, and May 25. Attendees will learn how the angel investing process works, hear insights from existing investors, and gain a deeper understanding of how diversity among the investor pool translates to access to capital for Black entrepreneurs.
IFEL Co-Founder & CEO Jil Johnson, the creator of the Making of Black Angels, said the goal of the program is to introduce a broader group of people to a new wealth-building tool. The online sessions are an opportunity to learn about an asset class that has been the exclusive domain of a select few for too long.
“The Black community is missing an opportunity to participate in this wealth-building asset class that opens the flow of early-stage capital to Black entrepreneurs,” Johnson said. “There is no better time than now to catalyze a new generation of Black investors and make a life-changing impact on Black-owned business enterprises.”
In recent years, the amount of angel capital going to women founders has increased with an increase in the number of women angel investors. The Making of Black Angels movement believes this model works. With an increase in inclusion within the angel investing sector more Black entrepreneurs can garner angel investment. IFEL’s targeted approach provides a model for expanding resources to other historically excluded populations as well.
The Making of Black Angels program is made possible by generous funding from JPMorgan Chase.
For more information, or to enroll, visit makingblackangels.org.