Black-led venture capital is showing signs of growth, but progress remains uneven, according to the newly released “2025 State of Black Venture Report” by BLCK VC.
“Black investors continue to lead, despite constraint, despite backlash,” Kareema Thomas, chief strategy officer of BLCK VC, wrote in the report.
The report found that the median fund size for Black-led firms is $20 million, with an average of $59 million, both below the broader industry median of $50 million–$100 million. The average is skewed by a single $500 million fund, underscoring obstacles that continue to affect how Black general partners (GPs) raise and deploy capital.
Notable wins stand out. In 2024, Slauson & Co. raised a $100 million second fund to support women- and people-of-color-led companies in SaaS and consumer tech, AFROTECH™ previously reported. In addition, in February 2025, Cherryrock Capital, founded by Stacy Brown-Philpot and Saydeah Howard, launched a $172 million fund for growth-stage startups founded by underinvested entrepreneurs. More recently, in May 2025, Zeal Capital Partners raised $82 million for Fund II to back companies in fintech, health care and the future of learning and work.
The findings also highlight how today’s political climate and broader economic headwinds are shaping outcomes for Black-led funds. Diversity, equity, and inclusion (DEI) initiatives are under heightened scrutiny, creating additional pressure for firms led by people of color, the report cites. Despite these challenges, many Black investors remain resilient, adopting innovative funding models and building strategies to ensure long-term sustainability.
“There’s still a belief that if it’s not equity-based, it doesn’t count. That’s just not true. Our founders still go through due diligence. We still issue term sheets. The difference is, our returns come faster, and the companies we support don’t have to sacrifice long-term ownership for short-term growth,” Dr. Ebony Utley, co-founder and managing director of Ensemble Innovation, said in the report.
Even with these alternative funding models, barriers remain. Deal activity has slowed since 2023, and investments beyond Series A remain rare.
Backstage Capital, founded by Arlan Hamilton in 2015, exemplifies both the impact and the challenges of BLCK VC’s findings: The firm has invested in over 200 companies but has faced downsizing and a pause in new investments in recent years, TechCrunch reports.
Early-career representation is also declining, per the report. While 50% of respondents of the 2023 survey were ages 25-34, 60% of respondents in 2025 were ages 30-54. This data raises concerns about the future pipeline of Black venture talent.
Limited partner (LP) behavior continues to be a critical factor in Black-led venture capital outcomes. According to the BLCK VC report, 44% of LPs surveyed had mandates to invest in managers of color, 22% focused on women-led funds, and 33% had no specific mandate at all. Combined with political headwinds, these dynamics make disciplined deal pacing and strong strategy even more important for Black-led firms seeking institutional and mission-driven capital.
Looking ahead, the report identifies opportunities in collaborative investments, cross-border ventures in Africa, and leveraging generative AI for deal sourcing and due diligence. The challenge of turning these opportunities into sustained impact for Black-led venture capital remains.
