British early-stage venture firm Black Seed has raised £5 million ($6.2 million) as part of its inaugural fund to solely support Black founders in the country. The round was led by asset manager M&G Investments, with additional support from Atomico and Molten Ventures. The firm is hoping to raise an additional £5 million to close the round.
Black Seed was launched to address the lack of funding Black founders receive in the U.K., according to its founders: Karl Lokko, Cyril Lutterodt and founding member Yvonne Nagawa. Black founders in the country received only 0.24% of all VC funds between 2009 and 2019, and only 10 Black British women were able even to raise at all, according to a report by Extend Ventures. That’s worse in some ways than in the United States.
The dismal lack of funding has historically led to Black British talent leaving the country for the U.S. seeking funding opportunities. Lokko and Lutterodt said the firm also wants to address the fact that 88% of Black businesses in the U.K. are self-funded, and …
