Underrepresented start-up founders | McKinsey

Our flagship business publication has been defining and informing the senior-management agenda since 1964. Our mission is to help leaders in multiple sectors develop a deeper understanding of the global economy. Timely insights on the go: Download the app, choose your topics, get a personalized feed. Pervasive societal inequity in the United States is strikingly evident in the start-up world. In 2022, Black and Latino1 founders received only 1 percent and 1.5 percent respectively of total US venture capital (VC) funding.2 Women-founded teams received 1.9 percent of VC funds, and only 0.1 percent of VC funds went to Black and Latino women founders.3 This report is a collaborative effort by Vasanth Ganesan, Ramya Mahalingam, Anil Nathan, Audrey Ware, and Allen Weinberg, representing views from Leap by McKinsey. It’s a gap that persists through each stage of growth. Looking at the total funding received (across stages) for the highest-funded start-ups at the time of exit reveals that the

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• Lila Negrete