With ProjectDiane 2018, digitalundivided is Single-Handedly Impacting the Narrative About Black Women in the Startup Ecosystem
(ATLANTA, June 13, 2018) – digitalundivided, a social enterprise that takes a transformative approach to economic empowerment by boldly empowering Black and Latinx women to own their work through entrepreneurship, today released the ProjectDiane 2018 report in collaboration with JPMorgan Chase, the Case Foundation, and the Ewing Marion Kauffman Foundation. The study is part of digitalundivided’s ongoing proprietary research initiative ProjectDiane.
ProjectDiane 2018 builds on the findings from ProjectDiane 2016, which was the first research project to quantify the entrepreneurial experience of Black women founders in the U.S. and sparked a national dialogue about inclusive innovation and entrepreneurship. It includes updated data on access to funding, new findings on the impact of location and education on startup success, and a fresh quantitative lens on Black women founders and their startup journey. The 2018 study also revisits the $1MM founders club and examines key changes to this much anticipated list of Black women who have raised over $1MM in outside capital. The report represents data and findings from ongoing quantitative and qualitative analysis by a dedicated team of researchers and scholars led by digitalundivided.
“We are proud to be continuing the push toward a world where all women own their work through entrepreneurship, because that’s the path to real power and economic stability for Black and Latinx communities. digitalundivided understands the impact of data on policy and startup ecosystems which is why we’re committed to using ProjectDiane to further develop data-driven programs for Black and Latinx women founders and shape the narrative about women of color in startups,” says Kathryn Finney, CEO and Managing Director of digitalundivided.
Key findings from the report include:
- The number of innovative startups founded by Black women has more than doubled since 2016. There are 2.5 times as many startups in the ProjectDiane 2018 database (227) compared to 2016 (84).
- The median funding raised by all Black women founders is $0. While there is a growing number of Black women crossing the $1MM venture threshold, a majority of Black women-led startups do not raise any money.
- After the release of ProjectDiane 2016, the amount raised by Black women founders increased 500%, from $50 million in 2016 to $250 million in 2017.
Still, Black women raised only .0006% of all tech venture funding since 2009.
- At the undergraduate level, Howard University, a historically black college and university (HBCU) in Washington, D.C. produced more Black women-led startups than Harvard University. The larger population of Black women may be a factor in Howard outperforming Harvard, however Harvard has significantly more resources than Howard and a strong, long term history of producing successful startups (Microsoft, Facebook).
JPMorgan Chase has invested $500,000 in digitalundivided as part of the firm’s $150 million Small Business Forward initiative to invest in businesses owned by minorities, women and veteran entrepreneurs. The funding includes support for the 2018 ProjectDiane report, as well as a nine-month cohort for 40 startups founded by women of color at digitalundivided’s BIG incubator.
“Women of color are the fastest growing segment of entrepreneurs. While some progress has been made, ProjectDiane underscores the economic opportunity left on the table when good ideas and small businesses led by women of color do not get the resources they deserve,” said Janis Bowdler, President of the JPMorgan Chase Foundation. “digitalundivided is doing incredible work in their goal to elevate women of color as business leaders and entrepreneurs. Thanks to their efforts, we are beginning to change the face of entrepreneurship in the tech industry.”
“Expanding access to capital for women and entrepreneurs of color nationwide – segments that have traditionally been overlooked – is good for entrepreneurs and for the overall U.S. economy,” said Jean Case, CEO of the Case Foundation. “digitalundivided is breaking down barriers to economic growth and lifting up new innovators who are driving ingenuity and building more inclusive entrepreneurial ecosystems that are critical to our nation’s economic future.”
“We believe that everyone has a fundamental right to turn an idea into an economic reality, regardless of who they are or where they’re from,” said Chris Harris, senior program officer at the Kauffman Foundation. “digitalundivided has demonstrated uncommon solutions to leveling the playing field for entrepreneurs who have been excluded due to demographic, socioeconomic and geographic barriers.”
For the full ProjectDiane 2018 report and findings and to learn more about the research visit the interactive site www.projectdiane.digitalundivided.com.
digitalundivided’s (DID) mission is for Black and Latinx women to own their economic security through entrepreneurship and technology. Founded in 2013, DID takes an innovative approach to community-level economic empowerment by creating pathways for Black and Latinx women (BLWE), and thus the larger Black and Latinx communities, into the innovation ecosystem. digitalundivided has demonstrated core competencies in building and scaling successful data-driven programs that remove barriers and create highways for women of color into innovation entrepreneurship, and has thus served as a singular force in moving the needle on inclusion in the innovation economy as a whole. For more information, visit www.digitalundivided.com and follow us on Twitter, Facebook, and Instagram.
About JPMorgan Chase & Co.
JPMorgan Chase & Co. (NYSE: JPM) is a leading global financial services firm with assets of $2.5 trillion and operations worldwide. The Firm is a leader in investment banking, financial services for consumers and small businesses, commercial banking, financial transaction processing, and asset management. A component of the Dow Jones Industrial Average, JPMorgan Chase & Co. serves millions of customers in the United States and many of the world’s most prominent corporate, institutional and government clients under its J.P. Morgan and Chase brands. Information about JPMorgan Chase & Co. is available at www.jpmorganchase.com.
About the Case Foundation
The Case Foundation, created by digital pioneers Jean and Steve Case, invests in people and ideas that can change the world. The Foundation’s work embraces a more fearless approach to seek to spur innovation, bring about transformational breakthroughs and harnesses the best impulses of entrepreneurship, innovation, technology and collaboration to drive exponential impact. In particular, we focus on catalyzing movements. Today we are driving at two major movements—impact investing and inclusive entrepreneurship. And as a movement catalyzer, we are taking a fearless approach to social innovation to tip individuals and organizations from good intention to meaningful action. Within both movements we see boundless potential to get all oars in the water to help solve our most pressing social problems. For more information, visit casefoundation.org and follow us on Twitter and Facebook.
About Kauffman Foundation
The Ewing Marion Kauffman Foundation is a private, nonpartisan foundation that works together with communities in education and entrepreneurship to create uncommon solutions and empower people to shape their futures and be successful. The Kauffman Foundation is based in Kansas City, Missouri, and uses its $2 billion in assets to collaboratively help people be self-sufficient, productive citizens. For more information, visit www.kauffman.org and connect with us at www.twitter.com/kauffmanfdn and www.facebook.com/kauffmanfdn.