One of the promises of investment crowdfunding and the online private markets is democratizing access to capital. Instead of relying on traditionally white-male-dominated venture capital (VC) gatekeepers, entrepreneurs can connect directly with investors from diverse backgrounds to fund their businesses.
In honor of Black History Month, we analyzed the data to see if investment crowdfunding is delivering on its promise of broadening access to capital for minority entrepreneurs — specifically Black founders.
How Represented Are Black Founders in Investment Crowdfunding?
In 2023-2024, Black founders participated in investment crowdfunding at rates comparable to their representation in the U.S. population (13.7% per 2023 census data):
- 14.6% of all deals had at least one Black founder
- 12.5% had an entirely Black-founded team
However, the type of fundraising Black founders pursue tells a more nuanced story:
- Only 10% of equity deals had at least one Black founder, compared to 21.4% of debt and revenue share deals.
- This suggests that Black founders may be raising capital with different business models in mind, with fewer pursuing high-growth equity funding.
Encouragingly, Black founders’ participation in online capital raising has increased over time:
- In 2020, Black founders accounted for 9.5% of all Reg CF and Reg A+ fundraisers.
- By 2024, that number rose to 11.0%—more than three times (3X) the 3.47% VC average (per a 2024 Columbia Business School study).
Do Black-Founded Startups Raise As Much Capital?
While more Black founders are raising capital through investment crowdfunding, funding levels still lag behind.
- In 2023-2024, Black-founded teams raised just 4.4% of all capital from online private market investors.
- However, this percentage is increasing:
- 2023: Black-founded teams raised 4.1% of all capital.
- 2024: That number grew to 5.0%.
Compared to VC, investment crowdfunding is far more equitable:
- In the first half of 2024, Black-founded teams received just 0.3% of all VC funding — on par with 2023’s 0.48% annual average.
A Shift Toward More Minority Founders in Investment Crowdfunding
Despite ongoing disparities in capital raised, the overall trend is promising. Investment crowdfunding appears to be a viable alternative for minority founders seeking funding, and investors are increasingly supporting them.

*2020-2022 data from the SEC report, “Women and Minority-Owned Businesses in Regulation Crowdfunding“. 2023-2024 statistics from Kingscrowd data.
The percentage of white founders in Reg CF and Reg A+ has steadily declined, while minority representation has grown.
- Black founders’ share of investment crowdfunding has increased from 9.5% in 2020 to 11% in 2024.
- Hispanic/Latinx founders saw an especially significant jump—doubling from 2023 to 2024.
In summary, while investment crowdfunding has made meaningful progress in leveling the playing field compared to Venture Capital, there is still a gap in funding for Black-founded teams.