Busting Myths for Black Entrepreneurs Seeking Venture Capital | News & Trends

0:00 Who is Donald Hawkins?
0:24 The importance of viewing VCs as business partners
1:20 Do you need to raise your own capital first?
2:14 Should you go to venture capitalists for advice or investment?
3:05 The importance of black venture capitalists in tech

When it comes to raising capital for Brown and Black entrepreneurs, it’s important to rethink the way we look at the venture capitalists (VCs). As Founder and CEO of kinly, unapologetic banking built for Black America, Donald Hawkins busts some myths to help minority founders reach their financial goals. First, it’s crucial to view VCs as business partners — not folks doing you a favor by handing out money. You’re the one putting in the hard work to provide a return for investors, so finding the right one matters. A venture capitalist who not only believes in your mission, but also will help you raise the funding needed to build a large and scalable business is the partner that will propel your success. Another misconception is that Black business owners think they need to raise capital first in order to get interest from VCs. But Donald says it's much easier to gain traction when they discover you’re building a real solution that other folks and entities are already interested in. Lastly, when it comes to seeking venture capital, try seeking it counterintuitively. If you go to VCs for investment, you might just get advice — but if you go to VCs for advice, you might just find a way to get an investment. As we push forward in helping Black business owners raise capital, we also encourage the pathway for more Black venture capitalists to enhance the ecosystem at large.

References:

Globally, venture-capital financings set a record in 2021 with $621B in combined deals.

A Harvard survey shows VCs ‘interact substantially’ with 60% of their companies weekly.

Learn more about kinly:

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The information contained in this video is provided for informational purposes only and should not be construed as an endorsement or advice from GoDaddy on any subject matter.

#VentureCapital #GoDaddy #SmallBusinessNewsandTrends #BlackHistoryMonth #BlackEntrepreneur #VentureCapitalist #BlackBusinessCapital #BlackBusiness #BlackBusinessFunding #BlackVenture #BlackStartups

[GoDaddy]

Do you have any other advice for seeking venture capital? Tell us below.

[Trillion]

I just flashed on a VC! I barked on him. Then got right on the phone after that with a more credible VC and it went completely different. Be careful which VCs you expose your dreams too. Especially us!

[davruck]

I’m working to launch my own VC firm. A community/collectively owned VC firm

[scooperleash_usa]

😂 stop glossing over the main question. VCs are ignoring black men. States the facts