Dr Elizabeth Shaw, founder, 1000 Black Voices
1000 Black Voices
“The death of George Floyd was a catalyst,” says Dr. Elizabeth Shaw, founder of 1000 Black Voices. “Enough was enough.”
I’m talking to Dr. Shaw just a few days before the launch of an A.I. and Blockchain accelerator aimed directly at early-stage companies founded by Black entrepreneurs and technologists. A partnership between 1,000 Blackvoices and A.I. marketplace platform, SingularityNet, the initiative promises a mix of mentoring, coaching, and funding opportunities to ten businesses from around the world.
It is, in fact, the organization’s second accelerator project. The first – conceived as a “Black tech” accelerator was launched in June last with the support of digital strategy and implementation company, Cyber-duck, and Microsoft. Dubbed the 1000BVA Accelerator, its aim was to provide support to help participants scale up and grow successfully.
As Dr. Shaw explains, the establishment of the two accelerators – and indeed the creation of 1,000 Black Voices itself – can be directly traced back to the killing of George Floyd.
“That was a step-change for us,” she says.”1000 Black Voices was founded to tackle the disadvantages that black people face in the technology industry and wider society.”
In that context, Dr. Shaw is engaged in a kind of activism that has been arguably under-reported over the last year or so. The immediate global response to the death of George Floyd was focused largely on the need to reform the police and justice systems and that was a message that rang out as clearly here in the U.K. as it did in North America. But the first wave of street protests paved the way for a wider and deeper discussion around lack of inclusivity and the degree to which racism (systemic or otherwise) constrains the lives and options of black people.
Within that context, 1000 Black Voices has itself the broad task of promoting and celebrating the benefits of diversity while homing in on some of the very specific problems that face black entrepreneurs.
Under Representation
The problems are not only real but measurable problems. For instance, according to a report by venture capital investor, Atomico, only 0.9 percent of European tech founders identified themselves as being from an ethnic minority and only half of them have managed to secure external finance.” A separate survey by Extend Ventures and cited by 1000 Black Voices, found that only 0.24 percent of Black founders managed to raise VC funding.
“Black founders find it very difficult to get funding,” says Dr. Shaw. “Black founders deliver 30 percent higher than average ROI but they still face funding challenges.”
There are a number of reasons for this, some of them deep-seated. VCs have traditionally had a tendency to commit funds to people who look and sound like them. Things are changing, but as things stand, the VC universe continues to be dominated by white men. Ethnic minority founders and and also women often feel they have a tougher time convincing investors than their white, male counterparts.
There are also challenges around personal networks. Raising equity and debt finance tends to be a lot easier if you know the corporate finance system or have peers who can provide advice. It would be wrong to generalize, but people from ethnic minority communities are probably much less likely to have the kind of peer networks that are plugged into finance and startup ecosystems. The 2020 Black Report – again cited by 1000 Black Voices – found that Black founders are more likely to self-finance.
Ground Level
There are clearly huge systemic issues here – some of which Dr. Shaw believes can only be solved by government policy – but a lot can be done at ground level by helping black business owners to grow their skills, develop networks and connect with funding sources.
So what does the A.I. and Blockchain Accelerator offer in terms of supporting Black entrepreneurs? Well, for one thing, it’s timely. Both technologies are increasingly underpinning innovation across a wide range of industries. The 1000 Black Voices program aims to provide Black entrepreneurs with expert help in bringing their own A.I. Blockchain products to the marketplace while also opening up funding options. Some of that funding will be provided by SingularityNet, which has made the equivalent of $1 million available in tokens.
The program is global and designed to encourage collaboration across borders, breaking down geographical silos in the process.
With only 10 places, all applicants must, at this stage, be able to show a minimum viable product and be at least 50 percent black founder-led. “The program is virtual,” says Dr. Shaw. “That has advantages in that we are able to bring people together from all around the world – people who might otherwise not have been able to turn up at specific geographical location.
The question is, what can be achieved through relatively small initiatives? Well in the case of the individual companies, access to finance, mentoring, and peer support can make a real difference to their chances of acquiring both the knowledge and funding required to scale up. And there is evidence that 1000BVA Accelerator is having an impact. Dr. Shaw cites the example of cohort member TekiHealth – a telemedicine diagnostics company – that has succeeded in raising £250,000 in grant funding and £520,000 worth of contracts.
But there is a bigger picture. 1000 Black Voices has a wider agenda of tackling racism, particularly as it impacts Black people around representation in the workplace and business world, recognition of the talents they bring to the table, and ultimately the rewards they can hope to secure. The accelerator programs provide a practical way to address some of those issues as they affect founders.