BLACK IN FINTECH
“ I set out to raise the visibility and profile of resource-constrained asset managers and financial advisors . I began brainstorming and developing the concept for our technology platform .”
Much like women founders , BIPOC founders face a significant challenge in accessing funding for their business ventures – with only 1 % of the US $ 150bn in venture capital that was provided to startups in 2020 being attributed to black founders , according to data published by Accenture . “ The most significant challenge for us at DFD Partners was raising capital to fund the development of our platform ,” Drew continues . “ As a minority founder , I faced additional hurdles in winning the hearts of investors . We encountered scepticism and bias , which we had to overcome to secure the necessary funding .”
Drew says this led him to raise money from friends and family initially , beginning with a US $ 10,000 investment from his mother . Eventually , he was able to leave a stable job at Vanguard and secure DFD ’ s first client last year , continuously highlighting the positive factors of the startup ’ s platform to prospective investors .
But , “ while growing faster than competitors , offering a better basket of services and delivering results , we still remained grossly underfunded ,” he says .
“ Lenders and investors should take more perceived financial risks to support minority , women and black-owned fintechs ”
EVERETT SANDS FOUNDER AND CEO OF LENDISTRY
124 October 2023