Black-founded US startups secure $643m in Q1 2026, highest since 2022
While early 2026 figures mark a quarterly high, funding remains a fraction of total US venture capital, with experts citing network access and investor caution as key barriers.
US startups founded by Black entrepreneurs have raised $643 million in venture capital since the beginning of 2026, marking the highest quarterly total recorded since 2022. According to data from Crunchbase, this figure is driven by 34 major deals, led by a $350 million Series E round for AI hardware company SambaNova. Additional significant investments include $75 million in Series B funding for sports prediction startup Noviq and $47 million for the YC-backed AI insurance platform Harper.
Despite this quarterly surge, the amount represents a small fraction of the $252 billion raised by all US startups in the same period. In 2025, Black founders raised $942 million, which constituted just 0.32% of the $290 billion total venture dollars in the US. The current $643 million raised in early 2026 represents almost 70% of the total raised by Black founders in all of 2025, indicating a concentration of capital in the first few months of the year.
Gené Teare, head of research at Crunchbase, attributed the persistent decline in funding relative to the broader market to limited access to networks, relationships, and early introductions. Teare noted that the current market is increasingly concentrated and AI-centric, with investor caution in the ongoing downturn potentially hindering opportunities for first-time diverse founders.
The data reflects a venture funding downturn that has persisted for eight to nine quarters. Crunchbase figures show a persistent decline in funding to Black-founded companies that outpaces the overall decline in startup funding. The market is described as barbell or bifurcated, with certain groups, including some venture funds, struggling to raise capital.
One has to wonder if the abundance of caution that’s now prevalent in the industry has prevented investors from taking chances on first-time founders who are more likely to be diverse, Teare said. The figures highlight the disparity between the record quarterly total for Black-founded startups and the broader context of the US venture capital landscape.
