VC funding for Black entrepreneurs hits record high

Latest Q1 data shows Black-led startups secured $500 million in venture funds.

A new Q1 2025 report from Crunchbase and PitchBook data reveals that Black-founded startups pulled in a record $500 million in total venture funding—a 28% increase over Q1 2024. This surge was driven by 18 equity rounds across fintech, healthtech, and climate-tech sectors.

Key Highlights

  • 18 Black-founded companies closed funding rounds in Q1 2025.
  • Average round size grew to $27.8 million, up from $21.7 million in Q1 2024.
  • Top geographies: California (7 deals), New York (5 deals), and Georgia (3 deals).

Investors attribute this momentum to a growing emphasis on DEI initiatives and a handful of outsized Series A and B rounds that captured attention across the ecosystem.