2021 in Review: How Much Funding Did Black Founders Get This Year?

Black-founded startups received roughly $1.8 billion in funding in the first half of 2021, a number that is four times larger than the previous year.

Although at a glance this amount of money may seem significant, in reality, it is only 1.2% of the total venture capital investments that startups in the U.S. received during the same time period. Black women are further marginalized, receiving only 0.34% of the total venture funding. This, compared to the U.S. population where Black people make up 13.4% of the country, is disproportionately low.

Despite studies showing that diverse startups lead to higher returns, receiving funding as a POC founder has still proven to be a challenge. In fact, Black investors make up only three percent of the venture capitalist community.

Further, once a Black-founded startup does receive funding, it is likely to occur in single rounds. But despite all the systemic barriers, there have still been Black-owned startups that have successfully raised a large sum of money this year. The 2021 Crunchbase Diversity Spotlight Report introduces some of these startups. Below are the org charts of the 14 Black-owned businesses that made the list:

1. Cityblock Health

Brooklyn Based Cityblock Health founded by Iyah Romm and Toyin Ajayi raised a $192 million Series C led by Tiger Global and $400 million Series D led by Softbank. The company provides in-home, community-based and virtual care to its members and is currently valued at an estimated $5.7 billion.

2. Formstack

Workplace productivity platform Formstack helps organizations by simplifying forms, documents and signatures. Founded by Ade Olonoh, who has since stepped down as CEO and sits on the company’s board, Formstack raised a $425 million private equity round in November led by Silversmith Capital Partners and Providence Strategic Growth.

3. Calendly

Tope Awotona is the founder and CEO of Calendly, a tool that simplifies meeting scheduling through automation. Based in Atlanta, Georgia the company has raised a $350 million Series B this year led by Openview.

4. Chipper Cash

Chipper Cash was founded by Ham Serunjogi and Maijid Moujaled in 2018. A platform designed for cross-border payments, it recently closed a $100 million Series C led by SVB Capital in May and a $150 million Series C extension led by FTX. The company is currently valued at $2 billion.

5. Rocket Lawyer

Rocket Lawyer was founded by Charley Moore in March 2014, providing online legal services to individuals and small to medium-sized businesses. It received a $223 million venture round led by Vista Credit Partners in April this year.

6. Andela

Andela connects global talent with companies. It was founded by four professionals Ian Carnevale, Iyinoluwa Aboyeji, Jeremy Johnson and Christina Sass and currently has over 1000 employees. Andela raised a $200 million Series E led by Softbank Vision Fund in September, bringing its total amount of funding to $381 million.

7. Flutterwave

Flutterwave is a fintech company that builds payment infrastructure that connects Africa to the global economy. It was founded by Olugbenga Agboola in May 2016, and it is currently valued at over $1 billion after raising a $170 million Series C led by Tiger Global Management and Avenir Growth Capital in March this year.

8. CloudTrucks

San-Fransisco-based CloudTrucks helps businesses manage their trucking services. Founded by George Ezenna, Jin Shieh and Tobenna Arodiogbu in 2019, the company raised a $115 million Series B led by Tiger Global, bringing its valuation up to $850 million.

9. SmartAsset

SmartAsset is a fintech company that helps customers make smart decisions about their money. It was founded by Michael Carvin in 2010 and recently closed a $110 million Series D round led by TTV Capital, valuing the company at over $1 billion.

10. Gro Intelligence

AI-powered Gro Intelligence analyzes data from over 40,000 sources and provides insights and forecasts for agricultural products and services. It was founded by Nemo Semret, Sara Menker and Sewit Ahderom in 2014 and recently raised an $85 million Series B, bringing its total funding to $115.3 million.

11. Universal Hydrogen

Founded by John-Paul Clarke, Jon Gordon, Paul Eremenko and Jason Chua. Universal Hydrogen is on a mission to make carbon-free aviation a reality. This year it raised a $20.5 million Series A led by Playground Global and a $62 million Series B led by multiple investors.

12. Titan

Premier investment firm Titan was founded by Clayton Gardner, Joe Percoco and Max Bernardy. This year, the company closed a $12.5 million Series A led by General Catalyst and a $58 million Series B led by Andreessen Horowitz.

13. Fuzzy

Pet healthcare subscription company Fuzzy, hopes to make pet care more affordable. It was founded by Eric Palm and Zubin Bhettay. The company raised an $18 million Series B led by Greycroft and recently closed a $44 million venture round led by Icon Ventures.

14. Somatus

Healthtech company that specializes in kidney health, Somatus was founded by Anthony Welters and Ikenna Okezie in 2016. This year the company raised a $60.1 million Series D in June bringing its total funding to $140.1 million.