Has anyone read this bullshit? Just because you did the “best pitch of your life” does not entitle you to money, whether you’re an ethnic minority or not.

This guy bitches about going to a Series B (Yes B) fund with a Diversity side fund. He says nothing about his business other than that he tried really hard and is bitching that #blackideasmatter and thus should get funded by virtue of being AA. That’s a load of shit.

Less than 1% of startups get funded and he says he should get funded because he’s black. Note, he also TRIED really hard and gave the BEST PITCH OF HIS LIFE. This is what happens when the trophy generation starts businesses. You get shit articles like this.

https://medium.com/next-to-launch/black-ideas-matter-10345d0b4d2b

 


  • I sympathize with his frustration, and the lack of funding options for minorities is utterly indefensible. That said, he doesn’t have any traction and admits as much. Getting VC funding for a company in this stage is practically unheard of. He should approach angel investors instead.

  • I’m African American. I know I’m not funded because I live in a shit market for it and lack angel investor connections. Sometimes I really think I’m surrounded by idiots. I can’t afford to get the hell outta here. I also know that we are encouraged to ask for smaller amounts because there’s this dumb rationalization that we can do more on less because of all we endure as a community ( This was told to me by a European American aka white investor)

    I think it sounds like he’s extremely passionate about what he does and if you keep working on a product for that long with only 1,000 users, it’s time to get some strategic marketing going. He needs to find a way to increase users to 10k and get money from them.

    Then, he can get $500k. But he also has to be creative enough to come up with more.

    There’s a lot of crap you have to deal with when trying to fundraise. So add to the pressure of society telling you, you are less than because of the color of your skin or the vagina in between your legs. It screws with your psyche no matter how well intentioned you or they are.

    I personally would take the note as a compliment. They do series B. He’s talking to the wrong firm, but the response was polite.

    I need funding, but everywhere I have tried says no because I am a true disruptor. I have to go to the government because people on the street are too scared or too unfamiliar with the sector.

    Hope he keeps pushing, but just so you know, here below are a couple of things I’ve been told during the process so you can see that it’s psychological warfare out here:

    1) man, if you had children I would invest. There’s no bigger cash cow than a single black mom.

    2) why aren’t your team members black too? I don’t know if you’ll be successful that way. You know, you have to hire black. I only hire black.

    3) I am very interested in learning about your startup, we should meet for dinner. (To hit on me)

    4) there’s no way black girls can code. I’ve never seen that.

    5) you’re black, you can’t make money that way.

    Believe me, there are some cocky and arrogant black founders who have been fortunate enough to get funding, but I think there are very few of those as compared to the people who just want to be treated fairly and with respect.

  • While technology is agnostic, the people building and investing in it still aren’t. We have a long ways to go yet – both in dealflow and participating investors.

    That said, I would suggest that if you’ve been working on a product for a long time and only have 1000 users, you need to reassess. Are you SERIOUSLY building for a market need? Are people in pain without your product? Because Blastchat, no matter how well-intentioned, doesn’t seem to be scratching an itch for people.

    It’s almost like if you build a product that solves a problem for people, then other people will invest. Amazing concept.

    Check out Jewel Burks, for instance. (She speaks to the funding gap as well!)

    http://madamenoire.com/500319/behind-the-click-partpic-co-founder-ceo-partpic-jewel-burks-is-disrupting-the-tech-world/

    And finally, the bitching about talking to a SERIES B fund and wanting SEED capital is ridiculous. That person is lucky the associate was kind enough to speak with them, since they clearly did ZERO research into what that fund invests in. And the door was left open to return – well, it was left open until someone decided to whine on the internet about it. That’ll look good in due diligence.

    I don’t disagree that #blackideasmatter but #researchmatters more. Use your damn brain.

  • “In the next five years you will invest 5% ($125 million) of $2.5 billion in women and underrepresented minority led startups and invest the other 95% ($2.375 billion) in non women and non minority led companies. ”

    No wonder she didn’t get funded. She can’t make a solid logical argument!

    The 95% can still include women and minorities it’s just 100% of the side fund is dedicated to women and minorities. She’s either willfully ignorant or stupid.

    • 1) The poster is a guy, not a woman.

      2) The almost 100% of the other 95% will be to non-women/minorities because as of today, practically all funding goes to them, with only ~6% of it to women and ~2% to minorities.

  • Most of you are missing the point: The fund (Intel Diversity), which just launched, SPECIFICALLY ADVERTISED AS SEED MONEY FOR EARLY STAGE STARTUPS. It wasn’t until the pitch meeting that the founder was told they’re actually series B.

    His 1,000 users were gained organically (ie without ads, so imagine how much more can be gotten with promotion) two months after launch, not over a longer period like some think. Compare to others get 500k even without users, which was his main point.

    The fund associate gave the usual generic answer which doesn’t mean shit.

    • 1000 users isn’t enough traction. He was trying to compare himself to the founder of Instagram. Jhamar Youngblood is a fool.

      • Read more carefully: He was comparing specifically to Kevin Systrom in Burbn days, before it pivoted to Instagram. In Burbn days, Kevin didn’t have any users, just some of his friends, yet got $500k funding.

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