Are Black Founders Accessing Capital Through Investment Crowdfunding in 2025?

CHART OF THE WEEK 📈

By Brian Belley | Read

One of the promises of investment crowdfunding and the online private markets is democratizing access to capital. Instead of relying on traditionally white-male-dominated venture capital (VC) gatekeepers, entrepreneurs can connect directly with investors from diverse backgrounds to fund their businesses.

In honor of Black History Month, we analyzed the data to see if investment crowdfunding is delivering on its promise of broadening access to capital for minority entrepreneurs — specifically Black founders.

• Representation in Investment Crowdfunding (2023-2024):

  • 14.6% of deals had at least one Black founder.

  • 12.5% were entirely Black-founded teams.

  • These numbers align with the U.S. Black/African American population (13.7% per 2023 Census).

• Equity vs. Debt Funding:

  • Only 10% of equity deals had at least one Black founder.

  • However, 21.4% of debt & revenue share deals had Black founders.

  • This suggests Black founders may be raising capital with different business models, leaning more toward small business funding rather than high-growth equity.

• Growth in Black Founder Participation (2020-2024):

  • 9.5% of all founders seeking capital in 2020 were Black → 11.0% in 2024.

  • This is 3X the VC average (only 3.4% of VC-funded founders are Black, per a 2024 Columbia Business School study).

The proportional share of white founders seeking funding has also continued to decline year over year.

But What About the Capital Actually Raised by Black Founders?

Are Black founders seeing the same success when it comes to securing investor dollars? And how do the online private markets compare to venture capital when it comes to funding diverse founders?

👉 Read the full analysis here to find out.

INVESTMENT ROUNDTABLE

By Sam Fiske / Watch

How New SEC Rules Could Shape Startup Investing in 2025

This week we break down potential 2025 regulation changes and their impact on startup investing.

🔥 Key discussion points:
✅ How the SEC's new approach to crypto & reg CF could change startup fundraising
✅ The real story behind equity crowdfunding platforms – which ones raise the most?
✅ What investors need to know about Wefunder, Republic, StartEngine, Dealmaker & more

Join Brian, Léa, Teddy, and guest Scott Kitun as they unpack these insights and offer data-driven perspectives on the future of crowdfunding.

SIGN UP FOR Q1 DEMO DAY

Get ready to kick off the new year with a bang at Kingscrowd's Q1 2025 Demo Day! Powered by Capital Department, our first pitch event will spotlight six innovative startups of the year, making it our largest demo day ever.

You'll have the opportunity to engage directly with the founders during live Q&A sessions, allowing you to dive deeper into their innovative projects and get your questions answered in real-time. Additionally, you'll gain exclusive insights into the startups' growth potential and investment landscapes, complemented by expert analysis and ratings from Kingscrowd.

The Companies:

• BitterBrains: Transforming tech education and community engagement.

• HAVN: Pioneering fabric technology for enhanced health and wellness.

• Health Care Originals: Offering AI-driven healthcare solutions for chronic conditions.

• Namecoach: Ensuring accurate pronunciation of names through AI technology.

• RISE Robotics: Electrifying industrial machinery for a cleaner future.

• Qnetic: Innovating sustainable energy storage solutions.

PITCH REVIEW 💸

By Léa Bouhelier-Gautreau \ Deal Report

Brief: Hempitecture develops sustainable building materials, specializing in HempWool insulation as an eco-friendly alternative to traditional fiberglass and spray foam. Made from natural hemp fibers, HempWool provides effective thermal insulation while being non-toxic and environmentally responsible. The company aims to meet rising demand by scaling production in the U.S., offering builders and homeowners a safer, greener insulation option.

Key People: Hempitecture is led by founder and CEO Matthew Mead, whose background in architectural and environmental studies guides the company’s mission to provide sustainable building materials. Co-founder and COO Tommy Gibbons, with experience in finance and public policy, brings strategic insights from his time at Goldman Sachs and a startup. Both were named to Forbes' 30 Under 30 for Manufacturing & Industry in 2020, highlighting their impact.

Here's what we like: Hempitecture's competitive advantage lies in its commitment to sustainability and the non-toxic nature of its HempWool insulation, aligning with growing demand for green building materials. This differentiation appeals to environmentally conscious builders and architects, setting it apart from competitors using traditional materials. Led by Matthew Mead and Tommy Gibbons, the leadership team brings expertise in sustainability and business operations, with their inclusion in Forbes' "30 Under 30" highlighting their potential to drive the company forward.

The company has demonstrated strong growth, with annual revenue reaching approximately $2 million—reflecting a 79.7% increase over the previous year—and breaking even in 2024. This milestone means its current raise will primarily fuel expansion, enhancing investor returns. Key growth drivers include increasing manufacturing capacity, strengthening distribution networks, and advancing product innovations like carbon-sequestering insulation materials. The opening of a dedicated manufacturing facility in February 2023 further supports its ability to meet rising demand.

Hempitecture’s ability to secure strategic partnerships reinforces its market traction, including a $1.1 million contract with the New York State Energy & Research Development Authority. The company successfully leveraged its previous Wefunder raise to fulfill commitments and demonstrate growth, positioning it well for future scaling and investment opportunities.

Here's what we don't: Hempitecture faces notable market challenges despite increasing demand for sustainable building materials. Its focus on a niche market limits widespread adoption, and the higher upfront costs of hemp-based insulation may deter cost-sensitive builders, slowing penetration. Competing against traditional materials requires significant education efforts, adding to customer acquisition costs.

As the U.S. leader in hemp insulation, Hempitecture benefits from minimal direct competition, especially after a key competitor failed due to high debt and poor financial management. However, this also means the company must build market awareness from the ground up, a resource-intensive process that carries adoption risks.

Growth barriers include technological and regulatory challenges in hemp cultivation, which could impact raw material availability and pricing. Additionally, the company’s small team may face operational strain as it scales production and expands market reach, potentially limiting its ability to meet demand and sustain long-term growth.

LAST POLL RESULTS

Would you invest in WeatherFlow-Tempest

🟨🟨🟨⬜️⬜️⬜️ 👍 (5)

🟩🟩🟩🟩🟩🟩 👎 (8)

13 Votes

STAFF PICKS 🌶️

Future Cardia

Future Cardia develops advanced cardiac monitoring solutions using AI and remote technology to provide continuous and accurate heart failure monitoring. Its small, implantable device tracks ECG and heart sounds, enabling proactive patient management and reducing unnecessary hospital visits. Designed for healthcare providers, it enhances heart failure care by offering real-time, data-driven insights to improve patient outcomes.

• Pre-Money Valuation: $46.9 million

• Minimum Investment: $348

Karma and Luck

Karma and Luck is a modern spiritual lifestyle brand offering curated jewelry and high-vibrational home decor that celebrates spirituality and cultural diversity. With over $100 million in sales and 450,000 customers worldwide, the company has built a strong global presence. Its products aim to foster connection and mindfulness, appealing to those seeking meaningful, high-quality designs.

• Pre-Money Valuation: $45 million

• Minimum Investment: $200

Warehouse Exchange

Warehouse Exchange, with a valuation of $20 million, is raising funds on StartEngine. The company has developed a tech-driven platform that connects renters with warehouse owners, offering flexible storage solutions while monetizing underutilized space. Warehouse Exchange has over 18 million square feet listed across 35 states and generated $3.2 million in revenue in 2023.

• Valuation Cap: $20 million

• Minimum Investment: $500

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