By Nancy Dahlberg / email@example.com
Close your eyes and picture a typical "tech entrepreneur." If you always see a young white man -- perhaps a hoodie is involved -- you are not alone, and PowerMoves, Blacktech Week, the John S. and James L. Knight Foundation, the Case Foundation and many other organizations want to change that.
The statistics are alarming. As the second annual Blacktech Week got underway in Miami, and PowerMoves Miami launched its operations with a bootcamp and pitch contests, a new study recently surfaced that showed that of the 10,000-plus venture deals sealed from 2012 to 2014, just 24 of them were led by a black women founder. Of those few that have raised money, the average amount of funding was just $36,000, even though black women comprise the fastest-growing group of entrepreneurs in the U.S., according to the report, Project Diane by Digital Undivided, which calls black women founders “the real unicorns of tech.”
The statistics are only a little better for all minority entrepreneurs. PowerMoves, an entrepreneurship organization for entrepreneurs of color that just launched in Miami through Knight Foundation support, offers these numbers: While African-American and Hispanic students earn nearly 20 percent of computer science degrees, they make up only 9 percent of the technology industry and less than 1 percent of technology company founders. To help close this gap, PowerMoves is connecting entrepreneurs of color to mentors, capital, support and investment opportunities. The national initiative launched in New Orleans in 2014 has helped roughly 100 companies from across the country secure more than $27 million in capital commitments, the organization said.
This week, in partnership with Blacktech Week, PowerMoves held three-day bootcamp (which followed six weeks of virtual programming) for about 15 entrepreneurs -- among them from South Florida were Daddy Knows Too, FlyScan, Jurnid, Kurator, Radifit and Renal Trkrr. It will culminate in a demo day open to the public Wednesday morning at the Fontainebleau. After holding a Disrupters Showcase on Monday night with Kairos and VOO Media representing the 305, on Tuesday PowerMoves held two pitch competitions with $50K in prize money for eight selected entrepreneurs around the country, including two teams from South Florida: Court Buddy, a Miami-based matching service for a la carte legal services, and Kweak, a video messaging platform company based in Miami and Berlin. Taking home $25K each were Better Weekdays, a mobile job-matching platform, and Virgil, a mobile-first career navigation platform. Other teams pitching from around the country were Kudzoo, Unshrinkit, CyberReef Solutions and Zoobean.
"I was blown away by the ideas and the execution of the ideas so far. The ideas presented not only solved big social problems but would have great multiplier effects," said Carla Harris, a judge in the pitch contest and vice chairman of wealth management for Morgan Stanley, presenting sponsor of the event. "It is my thought that this will become the place for sophisticated investors who are looking for next generation technology and are specifically looking for entrepreneurs of color -- they will have to come to PowerMoves to find them."
She said that Earl Robinson, founder of PowerMoves, first asked her to be a judge for PowerMoves New Orleans in the first panel it ever had in 2014. "I was so impressed by the caliber of the entrepreneurs that I knew he was onto something that I wanted to get my firm involved in, because after all we are in the business of connecting capital with people and bringing leaders to the public and private capital markets. ... We helped support [PowerMoves] to go national."
The Case Foundation has also been a partner of PowerMoves for about a year and a half. Started by AOL founder Steve Case and his wife Jean, the foundation has been leading entrepreneurship initiatives for decades. "But we really got to this point where the American Dream seemed to be fading, there was a full series of entrepreneurs that were being left on the sideline," said Sheila Herrling, senior vice present of social innovation for the foundation. "How could we exploit this potential to drive the economy, to drive jobs, to drive ideas, and source them from all places and all people?"
In addition to PowerMoves, the Case Foundation is involved in JumpStart's Diversity Fund and Forward Cities and is looking for other partners. To VCs who say 'I'd love to invest I am just not finding the deals,' PowerMoves is creating this pipeline of entrepreneurs for them, Herrling said. The big goal: When you think of an entrepreneur, "that face that comes to you has just as much of a chance of being a women or an entrepreneur of color as the white guy in the hoodie," she said.
That Project Diane report found that just 11 black female founders raised more than $1 million. "Four of them are PowerMoves alumni," said Herrling. "There is a secret sauce in that. Something is working. I'm optimistic we're going to level the playing field."
The second annual Blacktech Week, open to all, also kicked off with a DiscoTech on Monday and youth event and opening reception on Tuesday. It moves into high gear Wednesday evening with the start of its 2 1/2 day summit at FIU's Biscayne Bay campus, featuring entrepreneurs and investors from around the world. On Saturday, Project Diane's author, Kathryn Finney, will keynote at the Blacktech Week Women's Innovation Brunch. Read more here from Blacktech Week co-founder Felecia Hatcher about why it's in Miami.
See a complete schedule of events at BlackTechWeek.com
See more information about PowerMoves at powermovesnola.org.
See past coverage of Black Tech Week 2015 here.
Judges watch pitches at PowerMoves Series A pitch Tuesday. At top, Disrupters Showcase at the Fountainebleau on Monday.