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According to the “Empreendedorismo Negro do Brasi” l survey, carried out by Preta Hub, in partnership with JP Morgan and Plano CDE, most black entrepreneurs indicate the difficulty of accessing entrepreneurial capital under fair conditions as one of the main obstacles to the development and growth of their startups – about 30% of black entrepreneurs say they have been denied credit without explanation.

These data portray a scenario of racial inequality and its impact on the economy and on the Brazilian innovation ecosystem, by demonstrating the existence of enormous barriers to the success of black men and women entrepreneurs, some of them visible and others invisible and structural.

In order to fill these gaps in diversity, inclusion and access to entrepreneurial capital, in 2020, Google for Startups announced the creation of the ‘Black Founders Fund’, a fund that invests financial resources in startups founded and led by black people in Brazil, without any consideration or equity interest.

Since its launch, the Black Founders Fund has invested in around 43 startups. In 2022 alone, BRL 8.5 million were invested, totaling BRL 13.5 million destined for companies founded and led by black people in Brazil since the launch of the initiative.

As a requirement for applying to the fund, startups must have active founders in their corporate structure who declare themselves black, as well as be looking for a round of investment to finance the next stage of development and have a product launched with some users and potential customers.

This is an important initiative that seeks to increase racial representation in the technology market, contributing to the construction of a more egalitarian and diverse ecosystem