Being a Black founder in the startup ecosystem is uniquely challenging. Historically, access to funding has been disproportionately difficult for Black entrepreneurs in comparison to their counterparts.

Ideas from black founders have often been overlooked by venture capitalists and angel investors, which has led to quite a significant gap in funding. This is why black founder startup grants, which don’t need to be repaid, change the game for Black founders.

These grants not only provide financial support, it also help empower and accelerate growth, which creates an opportunity for sustainability. So, if you’re a Black founder looking to kickstart or scale your project or business, then startup grants are worth looking at.

 

Black Founder Startup Grant: Criteria to Consider When Applying

Before applying for any black founder startup grant, there are certain key factors you should be very mindful of. First, you have to be sure that you are eligible for the grant. Every grant has an eligibility criteria and as such you should ensure that you meet the grant’s criteria such as demographic or geographic requirements, and also check the industry focus.

Some black founder startup grants are sector-specific, such as tech or healthcare, while others are more general. So the next thing you should do, is to look for focus areas of the grant. Many grants are tied to specific social causes, such as supporting underrepresented founders or those who contribute to their communities.

Also, grants have application deadlines. Be sure to keep an eye on application deadlines. The odds of securing grants is slightly higher when you apply early and missing a deadline can mean missing a significant opportunity, so organization is key.

Finally, don’t forget about the application process itself. Some grants require lengthy applications with detailed business plans, while others may be as simple as submitting a pitch video. Be prepared to demonstrate why your startup deserves funding.

 

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Top 7 Black Founder Startup Grants

1. The SoGal Black Founder Startup Grant
2. Comcast RISE Grant
3. Backstage Capital
4. NAACP Powershift Entrepreneur Grant
5. Tory Burch Foundation Fellows Program
6. Google for Startups Black Founders Fund
7. NBMBAA Scale-Up Pitch Challenge

 

1. The SoGal Black Founder Startup Grant

The SoGal Black Founder Startup Grant is a well-known initiative designed to bridge the racial funding gap and empower Black entrepreneurs, particularly women. The grant provides funding of up to $5000 to $10,000 to help Black women founders bridge the gap between having an idea and scaling up to a more sustainable business.

SoGal is deeply committed to investing in companies that are creating next-gen solutions in technology, beauty, fashion, and wellness. Additionally, this grant comes with lifetime access to SoGal’s global network of investors, advisors, fellow entrepreneurs and mentorship opportunities, all of which are essential for Black founders looking to break into competitive industries.

The goal is to make sure that Black founders are not just funded but also guided to grow their businesses effectively.

Application Tip: To apply for this grant, focus on detailing your business’s impact on the community, as that’s a key criterion for receiving funds.

 

2. Comcast RISE Grant

In 2024, the Comcast RISE Grant continues to be a top option for Black founder startup grants available for Black and minority-owned businesses. Comcast has a longstanding history of supporting diverse founders, and this program reflects that commitment.

Black founders who qualify can receive grants of up to $10,000, as well as access to technology upgrades, marketing resources, and media consultations. What sets Comcast RISE apart from other grants is its focus on providing not just financial assistance but also the tools necessary to elevate a business’s brand and reach a wider audience.

Pro Tip: Make sure you clearly outline how you plan to use both the financial and non-financial resources, as this holistic approach is key to the program.

 

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3. Backstage Capital

Although not a traditional black founder startup grant, Backstage Capital offers funding and mentorship through its accelerator program. Backstage Capital is a venture fund focused on investing in underrepresented founders, including Black entrepreneurs, women, and members of the LGBTQ+ community.

They’ve committed millions to investing in these underrepresented groups, believing that great ideas come from every background. Founders accepted into the program receive direct funding, business advice, and the opportunity to pitch to a larger pool of investors, enhancing their growth prospects.

Pro Tip: Even if you’re not ready for full investment, you can consider applying to programs like Backstage Capital’s accelerator for access to mentorship and networks that can open doors to future funding opportunities.

 

4. NAACP Powershift Entrepreneur Grant

The NAACP Powershift Entrepreneur Grant is aimed at empowering Black-owned businesses that are making strides in technology and innovation. In 2024, the grant is expected to provide awards ranging from $10,000 to $25,000 to help businesses scale.

The NAACP has consistently supported Black entrepreneurs through funding and advocacy, and the Powershift Entrepreneur Grant is an extension of these efforts. Not only does the grant offer capital, but it also connects Black founders with policy leaders, fostering an environment where underrepresented voices in business can influence larger economic conversations.

Eligibility Note: Ensure your business has a tech or innovation angle, as this grant is particularly focused on entrepreneurs in these sectors.

 

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5. Tory Burch Foundation Fellows Program

Although the Tory Burch Foundation Fellows Program is not exclusively for Black founders, it has been a significant source of funding and resources for women of color in business. Each year, the foundation awards $5,000 grants to a cohort of 50 women entrepreneurs.

The fellowship also includes a one-year program of learning and networking with top mentors and investors. Additionally, fellows receive a trip to Tory Burch headquarters for a chance to pitch their businesses and refine their entrepreneurial skills.

Pro Tip: When applying, emphasize both your business’s growth potential and the personal resilience that has driven your journey. The selection committee highly values founders who show perseverance.

 

6. Google for Startups Black Founders Fund

It’s no news that Google has been a longstanding ally of Black founders, and its Black Founders Fund offers another avenue of support. This fund provides Black founders with up to $100,000 in non-dilutive capital, along with up to $120,000 in Google Cloud credits.

Beyond just monetary support, Google for Startups offers mentorship, access to exclusive Google products, and hands-on support from Google teams.

This initiative aims to help Black-owned startups grow by providing them with the technology and resources needed to compete at the highest levels. This makes it one of the top Black Founder Startup Grants.

Application Insight: Highlight how your startup is using technology to drive innovation, as this is a key factor in Google’s selection process.

 

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7. NBMBAA Scale-Up Pitch Challenge

The National Black MBA Association (NBMBAA) hosts the Scale-Up Pitch Challenge, which awards cash prizes to startups founded by Black entrepreneurs. This annual competition is open to Black-led startups across industries, providing them with a platform to pitch their innovative ideas to a panel of expert judges.

The top winner receives a substantial grant that can go a long way in scaling their business. Beyond the cash prize, the challenge also offers invaluable exposure and networking opportunities with potential investors, industry leaders, and business mentors.

Bonus Tip: Even if you don’t win, the connections and feedback you receive during pitch competitions can be game-changing for your startup, helping you refine your strategy and gain visibility among key stakeholders.

 

How to Increase Your Chances of Securing a Grant

So, how do you improve your odds of securing one of these coveted grants? First, have a compelling story, nobody wants to read or listen to a boring business idea.

The narrative you craft around your startup should showcase not just your idea, but the problem it solves and the broader impact it will have. Align your application with the grant’s values. If the grant focuses on social impact, make sure to highlight how your startup serves a community or tackles a specific issue.

Next, you are only as strong as your network and many of these grants rely on recommendations or references. So, by connecting with industry experts, other entrepreneurs, or even past recipients, you increase your visibility and credibility.

Finally, don’t give up!!! Applying for grants can be competitive, and it’s normal to face rejections. Keep refining your applications and learning from each submission.

 

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Success Stories: Black Founders Who Thrived with Grants

The importance of Black Founder Startup Grants can never be overemphasized. Many successful Black founders have leveraged startup grants to fuel their startup’s growth. A good example is Sheena Allen, founder of fintech startup CapWay.

She secured early funding through a grant aimed at supporting Black-owned businesses in tech. That initial financial support from both Backstage Capital and Fearless Fund enabled her to build a fully functional product and attract investors for further rounds of funding.

Another example is Tristan Walker, founder of Walker & Co Brand. He utilized grant funding to address a unique gap in the beauty industry. His company, which focuses on grooming products for people of color, gained traction after securing grants that allowed him to develop and market his flagship products.

This financial boost, combined with Tristan’s innovative approach, led to a successful acquisition by Procter & Gamble, demonstrating the power of strategic funding.

 

Most Active Angel Investors for Black Founders

If you are looking for more than just grants as a Black founder, angel investors can also provide significant financial backing and we’ve compiled a few top angel investors to consider in 2024.

1. Charles Hudson

As the managing partner of Precursor Ventures, Charles Hudson has invested in over 100 companies, focusing on early-stage startups founded by underrepresented entrepreneurs, including Black founders.

2. Monique Woodard

Monique Woodard is an angel investor who is deeply committed to supporting Black founders. She’s known for her work with Black-led tech startups and regularly mentors entrepreneurs from diverse backgrounds.

 
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3. Arlan Hamilton

Arlan Hamilton founded Backstage Capital and has made it her mission to invest in underrepresented founders, including Black, LGBTQ+, and women entrepreneurs. Her venture fund has backed over 180 companies to date.

4. Lo Toney

Founder of Plexo Capital, Lo Toney focuses on investing in founders from diverse backgrounds. He believes in the power of inclusivity to drive innovation and consistently supports Black entrepreneurs.

5. Richard Kerby

Richard Kerby is a partner at Equal Ventures and is committed to making early-stage investments in diverse founders, including Black entrepreneurs, who are building innovative businesses.

 

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The ecosystem for Black founder startup grants is evolving as we move forward. This has caused the availability of grants and alternative funding sources to keep growing, which makes it easier for Black and underrepresented entrepreneurs to find the backing they need to succeed.

For many startups, grants serve as that crucial first step in building a business that can thrive long-term. With continued support from the community and dedicated funding resources, there’s a bright future ahead for Black Founders.

 

How RocketDevs Can Support Black Founders

While securing a grant as a black founder is a powerful way to get your startup off the ground, building a strong, scalable product is equally as critical. That’s where RocketDevs comes in.

RocketDevs provides Black founders with access to top-tier, pre-vetted developers who can turn your vision into reality without the complexity of traditional hiring processes. We’re the best value for developers on the web and the sweetheart choice for startups.

Whether you’re working on building an MVP or scaling an existing product, you get connected to developers that match not just your needs but your budget as well, all without compromising on quality. What this does is that it gives you the time to focus on what matters most, which is growing your business.

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