In spite of everything, the United States is still the finest environment for Black people to start a business and get funding. The stakes are higher, the market is more developed, and the goals are sky-high. More money, more choices, more chances, more, more, more.
It’s simple to dwell on the poor support and frequently biassed treatment that Black entrepreneurs face in the United States. However, despite appearances, the American Dream is still very much alive.
Lotanna Ezeike, a serial entrepreneur who previously raised over $1 million for his UK-based fintech, XPO, said he is now trying to attract capital for a new venture in the United States.
When asked about the differences between the United States and the United Kingdom, he replied, “Across the pond in the U.K., thinking tends to be pretty constrained, particularly around the seed stage.”
Because the United Kingdom is very tiny compared to other parts of the world, I believe this is the case. It’s a downward circle of diminishing returns: less money, less investment, and fewer breakthrough ideas.
German-born Cephas Ndubueze had the same opinion. He claimed that while living in Germany, he is still more likely to seek out investment capital in the United States since there are more examples of Black entrepreneurs succeeding there than in Europe.
When asked about the best place for Black entrepreneurs to work, he said the United States. “I can absolutely say the U.S. is a better environment for Black founders,” he said to TechCrunch. “Why? Increasing the variety of U.S. investors. Increasing numbers of capitalists are putting their money into nonstandard enterprises. Greater institutional investors are making seed stage investments of $100,000 to $500,000, creating more possibilities for entrepreneurs to connect with one another, and include more investors who have made prior investments in Black founders.
While it may seem that Black entrepreneurs are being welcomed with open arms in the United States, the data shows otherwise. (Despite the lack of official race statistics in both countries, interviews with startup founders and VCs have shown pervasive prejudice in France and Germany). For whatever reason, this has led many startups to go to the United States for their early networking needs.
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