Business Gift Registry is putting a new spin on a familiar tradition to make fundraising accessible to everyone. Entrepreneurs can now launch their business with a gift registry and get their friends and family to support them through gift giving just like they would support a couple for a wedding or baby shower.
In light of Elizabeth Warren’s recent policy proposal to provide grants to Black, LatinX, Native American, and other minority entrepreneurs, I wanted to circle back and send you some relevant info. (https://peopleofcolorintech.com/articles/dear-senator-warren-we-black-and-brown-founders-hear-you/)
Problem: There is a capital gap.
In 2018, only 2.2% of venture capital went to women-led startups. The gap widens for women of color. In the past 10 years, Latinx women-led startups raised 0.32% and Black women-led startups raised 0.0006%.
Put another way. Black women startups raise an average of $42,000 compared to the average initial round of funding for all startups which is $1.3 million.
Despite record levels of VC funding and supposed diversity efforts to increase access to capital, there continues to be immense obstacles for women of color looking for funding.
Why now: Entrepreneurship is a rising trend.
Millennials are overwhelmingly choosing entrepreneurship. In the next 2 years an additional 27 million are projected to be self-employed. Black women are leading the charge and are the fastest growing group of entrepreneurs in the US. While the number of women-owned businesses grew an impressive 58% from 2007 to 2018, the number of firms owned by black women grew by a stunning 164%, nearly three times that rate.
Solution: A new spin on a familiar tradition.
Business Gift Registry lets friends and family support an entrepreneur through gift giving just like they would support a couple for a wedding or couple for a baby shower. [slideshow: Why I Created BGR]
Mission: Build wealth, together.
Since 2014, seed stage deals (less than $1M) has been declining. With less early-stage capital available, it's expected that founders can raise money from friends and family. But the lack of accessibility is challenging, particularly for entrepreneurs of color. We're on a mission to make fundraising accessible to everyone so that gifting something small can make a huge impact on the progress of a company.