Black women founders are one of the most overlooked groups.People of color receive less than 1% of VC funding each year, and it’s even more worrying when that funding declines. By the end of 2022, Black entrepreneurs receive 45% less funding.
Against this backdrop, Sage and The BOSS Network are looking to redress some of this imbalance. Both organizations are now in the third year of their “Invest in Progress” grants program and have just awarded another 25 Black women entrepreneurs $10,000 each in grants.
In addition to the cash prize, the 2024 winner will also receive access to a 12-month program of entrepreneurial mentoring, coaching and education to help launch and grow their business.
The program is part of the $1.5 million Sage has committed to the BOSS Network, which is currently 85 women in the past three years.
Loss of momentum
when The first thing diginomica said was Dr. Kameka SmithFounder of BOSS Network2022, She said the murder The George Floyd shooting and subsequent momentum of the Black Lives Matter movement is what prompted Smith to approach companies for grant funding. The timing was good, as the DEI movement was gaining momentum. But two years later, Smith has seen things recede.
Unfortunately, funding and support is dwindling and it’s very difficult. As founders with funds, it’s very difficult to even raise additional funding. DEI and Affirmative Action are Being Challengedand many people are shying away from investing in small businesses, which is a real shame as there was no support in the first place.
This was discouraging to Black women founders who were just beginning to have hopes of being taken seriously as small business owners, and this discouragement was evident in the number of applications to the program. BOSS Impact FundIn 2023, 18,000 women applied for one of the 25 grants, but this year that number has fallen by a third to just 12,000.
We still have a lot of applicants, but I understand some people feel like, “There’s too many competitors, not enough opportunities, so it’s not worth my time. It’s disappointing that they didn’t stick to the support they were trying to raise initially around George Floyd, and instead of looking at what’s happening around racism and access to capital for founders of color, they decided that wasn’t an important pillar.
That’s why Smith applauds Sage’s ongoing efforts to break down barriers for black female founders.
It doesn’t matter what’s going on in the world, I hope other brands feel the same way.
Success stories
The success stories of past grant recipients are a testament to how important these programs are. Nancy Harris is one of the 2022 grant recipients and her eyewear business Vontel Signed a partnership deal with Disney for children’s glasses. Since receiving the grant in 2023, John Boyd has Boyd Cru Wines It’s on the shelves at Target.
Many of the first cohort of women in 2022 have secured additional grant funding from other sources. Smith said many of the applicants had already applied for 10 to 20 grants, and the BOSS grant was the first they received. She added:
It created a lot of momentum and excitement for them that, ‘My business is worth investing in.’ They became more confident and it encouraged them to go forward and apply for more grants and pursue more opportunities.
While the $10,000 will be extremely valuable to successful applicants, the year-long program is just as important: for 12 months, they’ll receive access to the BOSS community of like-minded women, support from other founders through peer-to-peer mentoring, and the opportunity to work directly with Sage leaders.
The possibility that a Black female founder could misuse the Sage network in this way was a key reason the vendor got involved. Cadence Willis, vice president of the Sage Foundation, said: The company partnered with Boss Network in response to the significant barriers Black women face when starting and scaling their businesses, and the fact that Black female founders receive less than 1% of venture capital in the U.S. She said:
We felt Sage was uniquely positioned to help address these barriers, not just through funding, but through our network, mentorship, skills and training programs, and technology, and our partnership with BOSS Network and Cameka was the perfect match.
The program has had a ripple effect on the local community, and it’s not just the 85 grant recipients who benefit. Willis points out: Participating businesses reported hiring a total of 65 new employees in the first two years thanks to the grant funding, making a significant impact in the local community.
In a recent conversation with the second-graders, Willis said, Many of the Atlanta graduates who completed the one-year program said the grant money was crucial, but they gained even more value through the coaching, mentoring, and connections they made with like-minded entrepreneurs and professionals within Sage.
To be successful, applicants must meet a very strict list of criteria based on the health of their business, how much they are prepared to invest, and how they plan to use the funds.
For the thousands of women who were unsuccessful, going through this process will prepare them for success next time.
I met one woman recently in Atlanta who had applied to our grant program last year but was unsuccessful, and she told me that the application process helped her refine her business plan and think about the types of questions she might be asked.
The applicant reapplied this year and was awarded the grant.
A lot of the women who have been in this program have had so many rejections. 33% of women have been denied traditional bank loans, so it’s a very tough environment. And for a lot of women, they’ve applied for so many grants and been rejected so many times. It’s really hard.
You have to keep trying and keep learning. Always know what you can do, connect with like-minded people, and ask for advice. You might not be able to say “yes” right away, but maybe next time. What we hear most often from the women who have participated in the program is the approach they’re taking and the value they’re getting from these networks.
While many companies have recently cut back on DEI investments, cutting jobs and canceling programs, Sage has no plans to follow suit. Willis maintains that the company is not changing course on either its business or community goals, despite the ongoing debate around DEI in the US. He adds:
Our purpose is to break down barriers. We believe in providing a level playing field for all, not favouring one community over another. We know that an inclusive community that welcomes everyone, regardless of background, has a positive impact on business and innovation. We will continue to contribute towards creating an inclusive and innovative environment where all can thrive.
Sage is currently in the third and final year of this particular program with the BOSS Network, but this doesn’t necessarily mean the end of the company’s engagement with Smith and the community she built. Willis points out that the third year of the Invest in Progress scheme has just begun, and Sage is currently focused on engaging 25 women on the program. She adds:
We will be reviewing our program at the end of the year. We have learned a lot and have already begun to incorporate it into our thinking about global programming. We fully support Cameka’s efforts and are very proud of our partnership in the US.
Meanwhile, Sage is expanding its efforts into other programs aimed at supporting black women entrepreneurs. Earlier this year, the company The Path to Success program provides 150 Black women entrepreneurs in Atlanta with one year of training access and three-year membership to the BOSS network.
My take
It’s disappointing but understandable that fewer Black women applied to this year’s Invest in Progress program. With many high-profile companies closing or scaling back their DEI teams and the meager amount of VC funding available to Black founders further diminishing, many Black women will likely consider giving up on their entrepreneurial dreams, if they haven’t already. It’s great to see Sage continuing its commitment to this neglected group. We hope this inspires other tech vendors to participate in similar programs, making VC funding more equitable.
