Black History Month is a time to reflect on our past, recognize our present, and embrace our futures. Today, Black entrepreneurs and leaders are doing tremendous work across industries and shaping the future of business.
Recently, I had the privilege of speaking with a diverse group of visionary leaders. From navigating access to capital to advancing diversity, equity, and inclusion initiatives, these entrepreneurs are at the forefront of driving meaningful change and innovation.
Here they are:
- Jasmine Crowe-Houston, Founder and CEO of Goodr
- Elise Smith, Co-Founder and CEO of Praxis Labs
- Sheena Allen, Founder and CEO of CapWay Inc.
- Ibraheem Basir, Founder and CEO of A Dozen Cousins
- Julia Collins, Co-Founder and CEO of Planet FWD
Let’s explore the inspiring stories and perspectives of these trailblazers as they share their insights on the current funding landscape and explain how we can pave the way forward for the generations to come.
DW: Thank you for joining me! It’s a pleasure to have all of you here today. Let’s dive into our conversation, starting with Elise. Praxis Labs is at the center of the DEI conversation. How have the market and your industry evolved in the past year?
ES: Over the last year, we’ve seen an increase in polarization around diversity, equity, and inclusion work, especially in the wake of the Supreme Court’s ruling on affirmative action. There have been countless headlines reporting on DEI pushback and how organizations are responding by cutting headcount and budgets. However, studies published early this year reveal that businesses have remained committed to this work despite these challenges.
We’re in a pivotal moment. We have the opportunity to take these setbacks in stride and continue to drive towards impact. Now is the time to transition from the old ways of doing DEI — from the check-the-box, one-size-fits-all unconscious bias training — to an embedded approach where we identify and intentionally develop the attitudes, mindsets, skills, and behaviors that lead to an employee experience that is diverse, that is equitable, that is inclusive.
Within these efforts, the emphasis on the “I” is more important than ever. This shift acknowledges what we’ve known to be true all along — that inclusion and belonging extend beyond hiring and representation.
IB: That’s a great point, Elise. At my company, we’ve been prioritizing inclusive hiring practices to ensure our team reflects the diverse communities we serve. As a brand, A Dozen Cousins is rooted in the celebration of Creole, Caribbean, and Latin American culture, so it’s always been very important to me that our team reflect the people and places that make our food special. Today, 100 percent of our team comes from a minority or multiethnic background, and over 80 percent of the team is either Black or Latino. I believe our team has empathy and intuition that has allowed us to innovate better, move quickly, and act with a sense of purpose at all times.
DW: It’s so important to bring together voices that reflect the people we serve. When I was scaling Partake, I noticed a talented but homogenous hiring pool. It was the first time I saw the wide gap in diversity in the CPG food and beverage industry. Diversity is crucial for fostering innovation and driving business success.
The hard reality is that Black founders still have limited access to capital. Project Diane’s most recent report noted that Black female founders received just 0.41 percent of venture capital monies raised in 2022. Sheena, as a fintech entrepreneur, how have you tackled challenges related to access to capital in the past year?
SA: An unprecedented amount of funding was invested in startups in 2021. Unfortunately, many startups with no product-market fit or nothing at all received millions of dollars at really high valuations. As interest rates continued to rise and the market started to change, investors either stopped investing or limited their investing, causing startups to either raise down rounds, focus on profitability versus the “grow at any cost” method, or shut down. While I don’t know if or when we will experience the amount of funding invested in 2021, with funding in 2023 said to have dropped 60 percent year-over-year and be at a six-year low, I think we are all just waiting to see if things will get better or worse in 2024.
JC-H: Sheena, I can relate. Despite these challenges, I have to highlight the resilience and determination of Black women entrepreneurs who, against the odds, continue to build successful businesses. The journey may be arduous, but the potential for positive change is real.
JC: Here, here. Venture capital is still the most important catalytic capital instrument for many tech businesses, but there are other funding sources beyond traditional venture capital that may be a better fit. Look to angel investors, crowdfunding platforms, government grants, and strategic partnerships as ways to get the resources that you need to grow.
At Planet FWD, I have been successful in not only quadrupling revenue between 2022 and 2023, but also raising a round in a tough market by strategically approaching the fundraising market. For example, demonstrating a clear value proposition, viable business model, and sustainable growth strategy can make startups more attractive to investors even during challenging market conditions.
DW: This is a great point! Getting creative is crucial for all entrepreneurs.
Julia, you touched on this above, and I’d like to dig in a bit. Can you all share more about your support teams? What are ways you lean in and work with others outside of your organizations?
IB: Throughout my entrepreneurial journey, I have been really energized by informal peer mentorship. Sometimes it is great to hear from people who have navigated challenges before you, and sometimes it is also helpful to talk with someone about the challenges that you are both facing together in real time. For any diverse founders in the CPG industry who are looking to expand their network, I would strongly recommend Project Potluck and Included.
ES: Peer community is so important. I’ve also been fortunate to work with VCs and funders who support my company’s mission and believe that what we’re doing here has the potential to transform the business landscape.
JC: It’s super important to stay close to your existing investors and even to build new relationships with investors when you aren’t raising. At the end of the day we are all people, and we tend to work hardest for the people with whom we feel the most trust and connection. Maintaining transparent communication can help startups build trust and credibility, making it easier for investors to dig in even during tough markets.
JC-H: Goodr has forged some amazing partnerships with industry leaders like Bimbo Bakeries, Bristol Myers Squibb, Amazon, and Aetna over the last year. Collaborating with Bimbo has expanded our market reach; joint initiatives with Amazon have not only increased revenue, but also enhanced our brand recognition. These collaborations exemplify the power of strategic partnerships in driving innovation and propelling [Black businesses] forward.
SA: Let’s not forget, the best support [corporations can offer] is giving Black-owned and Black-led companies an equal opportunity to earn their business as we continue the fight for equity.
DW: Thank you, everyone, for your insights and perspectives. It’s clear that we need folks around the table who prioritize collaboration, support, and advocacy to drive meaningful change and create a more inclusive and equitable future for all businesses.
This Black History Month and beyond, let’s amplify diverse voices, foster inclusive practices, and support systemic change. In doing so, we can empower Black entrepreneurs to thrive and contribute to building a more diverse, equitable, and sustainable future for all.