By Bitwave 
Introduction
In 2021, Black Tech Nation Ventures (BTNV) was launched with the mission to address the funding gap for Black founders amidst a wave of venture diversity initiatives following the murder of George Floyd in 2020. Three years later, amidst growing backlash against DEI and diversity-focused investments, the firm’s mission may be more important now than when it started.
A New Fund, A New Challenge
The Pittsburgh-based venture firm has completed raising its first $50 million for its debut fund to back pre-seed and seed-stage software startups led by founders that are Black, women or members of the LGBTQ+ community, among other underrepresented groups. The firm is backed by LPs including Alphabet, First National Bank, and billionaire Mark Cuban.
Getting its first fund to its full $50 million goal was at first a race and then a slog, according to David Motley, a general partner at BTNV. The firm found initial fundraising success in 2021, holding a first close on $25 million that year, thanks in part to a surge of investors looking to put their money into funds focused on diversity, and favorable fundraising conditions especially for emerging managers.
A Shift in the Narrative
However, those trends didn’t last. The second half of the fundraise was tough as market conditions soured, and investors backed away from the diversity investing goals they made in 2020. "The pushback is real," Motley said. "We have seen funding to diverse founders and Black-led venture funds decline rapidly. We saw the level of funding return to 2019 totals."
While the diversity pushback isn’t a venture-specific issue – states like Oklahoma have voted to defund DEI efforts at public colleges, and affirmative action was ruled unconstitutional by the Supreme Court last June – venture is impacted. Atlanta-based venture firm Fearless Fund recently came under legal pressure from conservative activists that said their focus on grants and funding for diverse founders was discriminatory.
Caught in the Ripple Effect
Firms like BTNV could find themselves caught in the ripple effects of these recent events. But Motley said this change in overall narrative around DEI doesn’t discourage the team but rather shows them why they should stick to their thesis. "The industry is structured to do what it’s always done," he said. "But we’re trying to change that."
A New Era for Venture Capital
BTNV’s mission to address the funding gap for underrepresented groups in venture capital is more important now than ever. With a new fund and a commitment to diversity, equity, and inclusion, BTNV is poised to make a significant impact on the venture landscape.
A Closer Look at Black Tech Nation Ventures
- Mission: To address the funding gap for Black founders and underrepresented groups in venture capital
- Focus: Pre-seed and seed-stage software startups led by diverse founders
- Backers: Alphabet, First National Bank, Mark Cuban
Conclusion
In a changing landscape where diversity and inclusion are increasingly important, BTNV is a beacon of hope for underrepresented groups in venture capital. With its new fund and commitment to DEI, the firm is poised to make a significant impact on the venture landscape.
Related Topics
- DEI: Diversity, equity, and inclusion initiatives in venture capital
- Fundraising: The challenges and opportunities of raising funds for underrepresented groups in venture capital
- Venture Capital: The role of venture capital in supporting diverse founders and startups
About the Author
Rebecca Szkutak is a senior reporter at TechCrunch, covering venture capital trends and startups. She previously covered the same beat for Forbes and the Venture Capital Journal.
Contact Us
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