WHAT IS PROJECT DIANE?
- The number of Black & Latina women in the $1 million club more than doubles since 2018, totalling 183 Latina and Black women founders.
- The total funds raised by Black & Latina women founders is now up to $3.1 billion, just 0.64% of VC investment since 2018.
Since 2016, digitalundivided’s Project Diane Report has provided the startup community a snapshot of the state of Latina and Black women entrepreneurs in the tech and innovation ecosystem.
As the first research study to quantify the entrepreneurial experience of women of color-founded startups, Project Diane has fundamentally shifted the startup ecosystem’s focus and identified the need to increase investment for all founders to have equal access to funding.
Project Diane?
WHAT IS
Timeline
- Less than 20 Black women entrepreneurs raise $1 million or more for their startups.
- The inaugural release of this Project Diane report ignites a national dialogue about inclusive innovation and investment in the startup space.
2016
REPORT
2018
REPORTS
2020
REPORT
- Over 350 founders at more than 300 startups have raised $1 million or more in just under a two-year span.
- Though investments are down across the industry, they still outpace historic levels.
- Black women and Latina founders receive only .85% of startup funding as of Q3 2022.
2022
REPORT
- By this time, thirty-four Black women founders have raised more than $1 million in venture capital.
- Latina-led startups grow 87% between 2007 and 2012, but raise only 0.4% of the over $400 billion dollars in venture capital received by startups since 2009.
Project Diane 2022 presents crucial insight into the launching and funding experiences of more than 750 funded Latina and Black women startup founders. Our findings highlight noteworthy progress alongside the substantial work that must be done.
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Best cities to live in as a Project Diane founder
FAST FACTS
Latina and Black Women Entrepreneurs
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In 2021, Latina and Black women startup founders received more than $3.46 billion, bringing their combined annual share of total VC funding over the 1% mark for the first time.
9 Black women and Latina founders have achieved the elusive unicorn status with valuations of $1 billion or more.
Unicorn status unlocked
Financial services, education, business products & services, and beauty, comprise the next largest industries Black women and Latina founders are building innovative and groundbreaking companies within9 Black women and Latina founders have achieved the elusive unicorn status with valuations of $1 billion or more.
The leading industry for Project Diane founders is healthcare
The top cities to live in for all Project Diane founders include New York, San Francisco, and Los Angeles.
Venture funding in Latina and Black entrepreneurs doubled between 2020 and 2021
In 2021, Latina and Black women startup founders received more than $3.46 billion, bringing their combined annual share of total VC funding over the 1% mark for the first time.
This is more than twice the $4.8 billion that went to these startups through 2020.
Getting to 1%
In 2021, Latina and Black women startup founders received more than $3.46 billion, bringing their combined annual share of total VC funding over the 1% mark for the first time.
Hitting the Million dollar mark
Top states to be a Black woman or Latina entrepreneur
Based on the number of founders who have raised more than 1 million dollars or more, the top states for funded founders are California, New York, Georgia, and Florida.
$1
Million
For Black women founders, the top cities to live in included New York, Los Angeles, and Atlanta.
Best cities to live in as a
Project Diane founder
FOUNDER DEMOGRAPHICS
However, over 50% of Project Diane entrepreneurs gravitate towards building products and services in the following industries:
- Health & Wellness (16%)
- Business Products & Services (14%)
- Education (10%)
- Personal Care & Beauty (9%)
- Financial Services (8%)
Black women and Latina founders are developing powerful tech-enabled solutions across multiple industries.
Black women and Latina founders are developing powerful tech-enabled solutions across multiple industries.
WHAT DOES A PROJECT DIANE FOUNDER
Black women and Latina founders are developing powerful tech-enabled solutions across multiple industries.
Latina and Black Women Entrepreneurs
look like by location?
Project Diane entrepreneurs are educated and ambitious. Despite the connotation of STEM fields leading to success in the startup field, the majority of Project Diane entrepreneurs do not have a STEM related degree.
After decades of Silicon Valley dominance, New York City is the new top location for Project Diane entrepreneurs
Networks matter.
Within the space of education, one key educational institution - Stanford University - is turning out the most Project Diane founders with VC-backed businesses.
WHAT DOES A PROJECT DIANE FOUNDER
look like by education?
WHAT DOES A PROJECT DIANE FOUNDER
look like by university?
look like by city?
look like by industry?
WHAT DOES A PROJECT DIANE FOUNDER
WHAT DOES A PROJECT DIANE FOUNDER
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Latina and Black Women Entrepreneurs
in the Tech & Innovation Ecosystem
INTERVIEWS
Fundraising is a tough and uphill road for any founder. But for Project Diane founders, their journeys take on additional experiences. The most common feelings Black women and Latina founders reported are;
- Feeling their companies are undervalued in the venture capital space
-
Finding investors aligned with their overall goals, mission, and values is especially tough
- There should be more resources for founders to connect with investors (eg. mentorship, more opportunities to connect with funders, etc.)
Read more about Elise’s $18.7 million dollar fundraising journey, alongside interviews with some of Project Diane’s most prolific Black women and Latina entrepreneurs. Learn how these entrepreneurs navigated fundraising obstacles, obtained their first - or second - million dollar raises, and how they are defining success on their own terms, despite the odds.
Tanya
Menendez
SNOWBALL WEALTH
NOPALERA
PRAXIS LABS
THE LABZ
Sandra Velasquez
READ THE
Farah
Allen
Elise
Smith
interviews
Latina and Black Women Entrepreneurs
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INVESTMENT
2020
Project Diane founders receive $4.8 billion during venture fundings recording breaking investment year.
Fast facts
2022
Though investments are down across the industry relative to 2021, they still outpace historic levels. Black women and Latina founders receive .85% of startup funding as of Q3 2022.
Latina and Black Women Entrepreneurs
in the Tech & Innovation Ecosystem
WHAT YOU SHOULD KNOW
2021
Even more money is invested in the startup space. Latina and Black women founders received more than $3.46 billion, bringing their combined annual share of total VC funding over the 1% mark for the first time (0.64% for Latina founders and 0.41% for Black women founders).
More Latina and Black women founders are receiving funding than ever before. To date, Project Diane founders have raised nearly $10 billion dollars.
founders really gaining more industry funding?
ARE BLACK WOMEN AND LATINA
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In 2022, 5%
of all venture capital funding went to women. Of this money .85% went to Black women and Latina entrepreneurs
$57 billion
in VC that went to all female- founded companies in 2021. Of this money, Latina and Black women secured just over 6%.
UNICORN STATUS
The number of Latina and Black women raising $1 million or more for their startups has exponentially grown in the past half decade. This growth was accompanied by an industry-wide upward trend in startup valuations. 2021 was hailed as the “year of the decacorn” (companies with a valuation of $10 billion or more). In 2021, private companies valued at over $1 billion doubled, with 519 new unicorns emerging in that year alone. However, we have yet to see any Latina or Black woman-founded startups reach this mark.
2018
79 Black women and Latina founders break into the million dollar club
2020
183 Black women and Latina founders reach the $1 million in funding
2022
350 Black women and Latina entrepreneurs have raised
$1 million or more at more than 300 startups
2016
fewer than 20 Black women entrepreneurs raise over $1 million for their startups
Where are the Unicorns?
As of 2022,
more than 350 Black women and Latina entrepreneurs have raised $1 million or more.
More than 100
Latina and Black women founders have raised $10 million or more.
9 of these founders’
the number of Black women and Latina entrepreneurs who have raised over $1 million is 350
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FUNDRAISING
HACKS FOR FOUNDERS
FUNDRAISING
Hacks for Founders
- Farah Allen, Founder, The Labz
We're excited to support your growth and success as a Latina or Black woman entrepreneur! To help us provide the best resources and support possible, we kindly ask that you share some information with us. By providing these details, we can tailor our resources to meet your specific needs and help you reach your entrepreneurial goals. Your privacy is important to us, and we'll only use this information to provide you with better support as an organization.
Thank you for sharing your data with us!
- Network and collaborate with other Latina and Black women founders: Building a community of like-minded individuals can provide support, resources, and opportunities for collaboration. By connecting with other Latina and Black women founders, you can learn from each other's experiences and find new ways to advance your own ventures. Sign up for the digitalundivided Newsletter here to learn about new opportunities to connect.
- Share your own story and experience: Your story is powerful. Tell your story and include statistics with #ProjectDiane to join the conversation and connect with other founders and allies who are working to drive change. Sharing your story can not only inspire others to take action, but also help to create a more inclusive and supportive ecosystem for all entrepreneurs.
- Example Social Media Post: “As a Latina woman founder, I have personally experienced the challenges of raising capital, with endless “nos” and closed doors. But I refuse to give up on my dream and the potential impact it can have on the world. I am proud to be part of the digitalundivided community and to use my story, along with the #ProjectDiane report, to bring attention to this issue.
- The latest #ProjectDiane report sheds light on the stark reality facing Latina and Black women founders in securing funding. Despite the growth of their businesses and their passionate vision, Black women and Latina founders are met with rejection and doubt far too often. In 2021, Latina and Black women startup founders received just 1% of the combined annual share of total VC funding. This disparity is unacceptable and must be addressed.
- I encourage others to share their experiences and join the conversation using the hashtag #ProjectDiane. Let's work together to create a more inclusive and supportive ecosystem for all entrepreneurs. The time for change is now: www.digitalundivided.com/ProjectDiane”
- Example Social Media Post: “As a Latina woman founder, I have personally experienced the challenges of raising capital, with endless “nos” and closed doors. But I refuse to give up on my dream and the potential impact it can have on the world. I am proud to be part of the digitalundivided community and to use my story, along with the #ProjectDiane report, to bring attention to this issue.
- Leverage Project Diane data while fundraising: Utilize the statistics from the Project Diane report when applying for funding sources and reaching out to Entrepreneur Support Organizations to validate the challenges faced as a Latina or Black woman founder. Knowing your numbers is powerful. Highlight the disparities and difficulties faced by Latina and Black women founders in the industry, and use the data from the report to support your arguments and make a stronger case for why you deserve investment from venture capitalists, banks, angel investors, etc.
- Research and pursue underrepresented funding sources: It is important to be proactive in seeking out investors who are committed to investing in diverse founders. Research and connect with VCs, angel investors, and funds that are dedicated to supporting underrepresented entrepreneurs.
- Seek out and participate in diversity and inclusion initiatives: Participating in initiatives and programs that focus on promoting diversity and inclusion in the entrepreneurial ecosystem can help you gain valuable exposure, network with key players, and learn about new opportunities. Be aware of the potential for biased appraisals and devaluation of your business, and take proactive steps to address these challenges. This may include seeking out external valuation experts or working with a mentor or advisor who can help you navigate these issues.
This Data
HOW TO USE
Have a way - any way - to keep going. Believe in what you’re doing. And if it’s going to be a success, you need time, so find the time. Find a way to keep going because there will be one big yes. Maybe even several. But you have to be in the game to hear that.
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INVESTORS AND ORGS
We know that the world is an unfair place. Yes, we know that the world is prejudiced, but what do we do? How can we help? The great thing about Project Diane is that not only do we provide a clear idea of what the landscape looks like, but we also provide instructions.
Latina and Black women entrepreneurs are still facing significant disparities in the startup and venture capital ecosystems. Despite their proven potential for growth and success, Latina and Black women-owned startups receive 1% of venture funding…and that percentage is decreasing. The latest Project Diane report highlights the progress that has been made, but also shows that there is much more work to be done in creating a more inclusive and equitable system for these founders.
As an investor or business leader, you have the power to make a difference. By taking action, you can help support the growth and success of Latina and Black women entrepreneurs and contribute to the advancement of diversity, equity, and inclusion in the entrepreneurial ecosystem. By committing to DEI initiatives and taking accountability, you can play an important role in addressing the funding disparities, promoting greater diversity in the startup and venture capital worlds.
HOW TO USE
This Data
SUPPORTING DIVERSITY FOR
Investors and Organizations
Latina and Black Women Entrepreneurs
in the Tech & Innovation Ecosystem
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- Increase investment in Latina and Black women-led startups: Large companies and sources of funding can use Project Diane data to inform their investment strategies and actively seek out Latina and Black women-led startups to invest in, diversifying portfolios while increasing profit margins. This could be through creating dedicated investment funds or programs, or through actively sourcing and engaging with these founders and startups who may not be in a VC firm’s immediate network.
- Address unconscious bias in investment decisions: Project Diane is a demonstrable way to explore and examine just how often prejudices and biases limit us. Companies and sources of funding can use Project Diane data to inform their own internal processes and address unconscious bias in investment decisions. This could include providing training and education for investment decision-makers, and conducting regular audits to monitor progress and identify areas for improvement.
- Enhance diversity and inclusion initiatives: Companies and sources of funding can use Project Diane data to inform and enhance their diversity, equity, and inclusion (DEI) initiatives. This could include creating programs to support the growth of Latina and Black women-led startups, or offering mentorship and training opportunities to these founders.
- Foster community building and networking: Project Diane data highlights the challenges faced by Latina and Black women-led startups in accessing funding and resources. Companies and sources of funding can use this data to help foster community building and networking opportunities for these founders. This could include hosting events, connecting founders with each other and with potential investors, and providing access to resources and support networks.
- Promote awareness and understanding of funding disparities: Companies and sources of funding can also use Project Diane data to raise awareness about the challenges faced by Latina and Black women-led startups, and to educate others about the importance of promoting equity and inclusivity in the entrepreneurial ecosystem.
- Encourage collaboration between the public and private sectors: Companies and sources of funding can work with government and other public sector organizations to promote and support Latina and Black women-led startups. This could include partnering on initiatives and programs to support these startups, or advocating for policies that promote greater access to funding and resources for underrepresented founders.
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ABOUT
Latina and Black Women Entrepreneurs
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WHO IS
Diane?
Project Diane is digitalundivided’s proprietary data initiative. It is named after civil rights icon Diane Nash, an esteemed organizer and anti- segregation strategist who helped lead the arm of the collegiate civil rights movement.
digitalundivided?
Methodology
Founded in 2012, digitalundivided is the leading non-profit leveraging our data, programs, and advocacy to catalyze economic growth for Latina and Black women entrepreneurs and innovators. Our goal is to create a greater world in which all women of color own their work and worth. Our mission moves the entrepreneurial ecosystem forward to increase funding, access, and opportunities for women of color in business. Our work and advocacy laid the groundwork to empower generations to speak in profound ways about the realities, experiences, and disparities of entrepreneurship while defining actions for change.
Project Diane is the first demographic study to provide a snapshot of the current landscape for Latina and Black women founders in the tech and innovation ecosystem. The funding updates in this report are based on announced funding to companies from January 1, 2021 through September 30, 2022. Our team identified companies and founders for the Project Diane dataset by reviewing records from Crunchbase, Pitchbook, partner organizations, news articles, and company information submitted directly to the Project Diane website.
To be included in Project Diane, companies must be for-profit, US-based, tech-enabled startups with at least one Latina and/or Black woman founder. Funding data includes publicly announced equity crowdfunding, angel, seed, and venture round investments. Additional insights into the experiences of Latina and Black women startup founders are drawn from our Own Your Valuation Survey administered in March 2022 and founder focus groups conducted in November 2022.
Equity is not an unrealistic goal; it can be attained through commitment and collaboration.
We are grateful to every individual who supported this work, particularly the Latina and Black women founders on whom this research is based, the reviewers who have provided critical feedback, and the nonprofit leaders and partner organizations who have consistently championed digitalundivided’s work and research.
This report is made possible by the generous support of Project Entrepreneur, a program by UBS. Project Entrepreneur is on a mission to level the playing field for female founders by increasing their investment readiness, connecting them to the networks and resources they need to grow and scale their companies, and expanding the ecosystem of support that advances women entrepreneurs. Since 2015, Project Entrepreneur has trained and supported more than 1,800 female founders with alumni going on to raise more than $60M in capital.
We also appreciate the support from our donors: American Express, Chan Zuckerberg Initiative, LinkedIn, MetLife Foundation, Pivotal Ventures, Prudential, Tiger Global, and The Surdna Foundation.
WHAT IS
Acknowledgments
in the Tech & Innovation Ecosystem