Finding Funding in Non-Traditional Markets - Black Tech Week
Last week, Founder Forward hosted a workshop at Black Tech Week in Cincinnati, Ohio. Black Tech Week is an opportunity for investors, entrepreneurs, tech professionals, and creatives to share knowledge and build community.
Founder Forward’s workshop, led by our Executive Director, Dr. Lisa Marie Pierre, focused on “Finding Funding in Non-Traditional Markets.” Across 500 applicants from non-dominant start-up markets, 50% of founders sought Founder Forward advising to reach financial solvency. According to the Department of Commerce, geographic inequality continues to rise in the United States and our community of founders are simultaneously dealing with the historical impact of receiving less than one percent of VC funding, loan discrimination, redlining, the destruction of business districts, and more.
The workshop focused on founders operating in non-dominant start-up markets, encouraging them to think strategically on how to finance their business and continue to expand opportunity in their local community. We are committed to founders and the vital role they play in transforming the economic landscape of this nation through providing unrestricted funding, strategic advising, and story amplification.
Given that founders who receive advising are more likely to thrive, this workshop honed in on sharing knowledge and resources on how founders can position themselves to achieve financial solvency in this competitive landscape. We recognize that the challenge of founders finding funding in non-traditional markets cannot be solved by one organization. This workshop served as an interactive learning session where collectively we could identify existing resources and set aspirations for what is possible.
While we continue to fight systems, we can attempt to chip away at the individual level by supporting founders in:
Setting a financial strategy that aligns with the business's products/services cycle: We encourage founders to do a fundraising sprint that has an end date. Founders should dedicate the majority of their time to improving the quality of their product/service to be as self-sustaining as long as possible and have the advantage when seeking funding. This is a strong foundation to set.
Understanding their audience: To scale a business it’s crucial to assess the needs of the business’s target audience and investigate how to expand in alignment with the community’s needs. Founders who have a distinct understanding of their buyers will have an additional appeal to investors.
Identifying founder funder alignment. Receiving VC investment does not make sense for the majority of founders and business models, it is important to understand the potential with grants, small business loans, partnerships, and founder and community centered funding.
With over 60 people, representing their community, business, or investment portfolio in attendance, this workshop was a proud moment in our journey towards redistributing economic and social power. We envision non-dominant start-up markets where Black, Indigenous, and other diverse founders can build sustainable businesses that contribute to a more equitable and inclusive society.
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