Black Startups Get One-Third as Much Venture Capital as Peers

Black founders of US startups raise just one-third as much venture capital over the first five years as other comparable businesses formed at the same time, according to new research co-authored by Federal Reserve Governor Lisa Cook.

Only part of the gap in funding can be explained by tangible factors -- for example, that Black firms have smaller founding teams, attended different schools from venture capital leaders or live in different regions, and are less likely to have a patent -- according to the National Bureau of Economic Research study published Monday. The other authors were Emmanuel Yimfor of ...