As an analyst with a background in racial equity and technology, I find the Crypto Council for Innovation’s research on racial disparities in web3 funding deeply concerning. The data highlights a stark reality: Black and Latino founders continue to face significant barriers to securing funding in this sector, despite its promise of democratizing the economy.
As a researcher conducting studies with the Crypto Council for Innovation, I’ve discovered that web3 doesn’t offer an equal playing field as racial disparities persistently influence funding opportunities.
In the realm of web3, which aims to level the economic playing field for everyone, racial disparities remain significant. According to information gathered by the Crypto Council for Innovation (CCI), Black and Latino entrepreneurs secure a minimal percentage of the overall funding deals.
As an analyst, I’ve examined the report published on crypto.news, and my findings reveal that the overall decline in venture capital (VC) investments amounted to a significant 36% in the year 2022. This downturn can be attributed to the persistent inflation and rising interest rates. However, the situation was even more challenging for Black-led businesses, as their investments experienced an “even steeper” drop of approximately 45%.
As a researcher studying the trends in crypto fundraising, I’ve discovered that Black- and Latino-led businesses saw a remarkable increase in funding between 2017 and 2022, with a total of $16.5 billion raised last year. However, this substantial amount only accounted for a meager 0.5% of the overall fundraising volume in web3 industry during the same period. This is a stark contrast to the 7.1% share held by these groups back in 2017.
According to the CCI’s observation, this decline marks the most significant annual drop in funding for Black entrepreneurs over the last ten years. Consequently, it highlights that web3 still faces a considerable distance before achieving equity for all.
During economic recessions, the perception that Black and Latino entrepreneurs carry higher risks than their counterparts intensifies, exacerbating existing biases in funding distributions.
The Crypto Council for Innovation
Black- and Latino-owned businesses consistently add value to the marketplace, yet they are disproportionately affected when investment funds become scarce.
“I haven’t encountered many women or Latin Americans in the United States working on web3 projects. I believe accessing capital for Latino founders in the U.S. is more challenging… I also suspect there exists a lack of awareness among this community regarding the various types of financial support available to them.”
Mónica Talán, the founder of CryptoConéxion
Based on the CCI’s estimates, the growth rates for fintech and data storage in the web3 sector, where a significant number of Black and Latino developers are actively contributing, are projected to reach approximately 44.4% and 45.1% respectively over the next ten years. This group of developers is particularly noteworthy as they focus on addressing unmet market demands that may have previously gone overlooked by investors and other industry players.
Read More
- BODEN PREDICTION. BODEN cryptocurrency
- GHST PREDICTION. GHST cryptocurrency
- BETA PREDICTION. BETA cryptocurrency
- STRD PREDICTION. STRD cryptocurrency
- Mango Markets Exploiter Found Guilty Of Fraud And Manipulation
- GBP EUR PREDICTION
- MATIC PREDICTION. MATIC cryptocurrency
- LOOKS PREDICTION. LOOKS cryptocurrency
- BRN/USD
- TNSR PREDICTION. TNSR cryptocurrency
2024-07-12 10:34