Businesses with black founders at the helm are most likely to hire diverse teams, says new research by 10×10 in partnership with Google for Startups.
The Black Report found that on average, 81% of staff at black-founded business identified as black, Asian or ethnic minority. This is three times the industry standard for the tech companies in the UK and US.
The report explores the journey of early-stage pre-seed black founders based in London and aims to delve into the stories of black founders, who they are and what hurdles they may face.
It follows growing pressure globally for companies to hire more black staff members in the wake of the resurgence of the Black Lives Matter movement and protests against police brutality over the summer.
The diversity figures also extend to gender with nearly an even split of 48% to 52% female to male founders.
10×10, a group of early-stage black founders and venture capitalists based in the UK, hopes the report will spark a national conversation about bridging the economic gap between black founders and their peers.
Andy Davis, a co-founder of 10×10, said:” We felt it was important to create The Black Report, as we wanted to start painting a picture of black founders, a growing population with incredible value. The diversity stats are particularly interesting as we know from previous studies that there is a huge business case for hiring diverse teams. Black founders could become key in closing the national gap regarding the lack of diversity in business”.
The report also found of the 60 black founders who were interviewed, a staggering 88% self-funded part of their ventures.
Marta Krupinska, Head of Google for Startups UK, said: “Having spent years in the startup world, I’ve remained shocked at how little we understand – and do – to support black founders, despite obvious challenges they face in accessing funding and the networks critical to success. I’ve been impressed by the work that The Black Report does to address all those, by not only showing data but whole lives of entrepreneurs and thus creating the empathy and momentum we need to change the status quo.”
Last week Google for Startups announced that they would create a $2 million Black Founders Fund, as part of their commitment to build a more equitable future.