Home Entrepreneurs 3 Black investors talk about what they’re looking for in 2023 • TechCrunch

3 Black investors talk about what they’re looking for in 2023 • TechCrunch

by Ozva Admin
3 Black investors talk about what they’re looking for in 2023 • TechCrunch

Founders and investors are preparing for a difficult 2023 as the economy shows few signs of improvement. But there are many questions in the air: will VC’s truckload of dry powder make it to market? Will there be more layoffs if the pressure on valuations persists? What awaits the AI?

However, we can answer a few questions: some trends are sure to continue, such as interest in artificial intelligence, and cryptocurrencies will continue to come under scrutiny. even when the market looks to the future. There are other aspects of the corporate world that probably won’t change, such as the lack of funding for minority and women founders.

To find out how minority investors are planning for 2023, we spoke to three active black investors. For Xfund vice president Jadyn Bryden, the maker economy is a hot spot worth watching in the coming months. “I expect to see continued movement in the creator economy as more people venture to build their own brands and rely on new tools for content creation and monetization,” he said.

Alexis Alston, director of Lightship Capital, believes that the future will be favorable for companies that create technology to help others do business and reduce costs: “As fast-growing technology companies begin to reduce overhead, I think we will see a strong shift towards companies that rely more on sales optimization and content creation tools as a replacement for previously highly redundant teams.”

But investors were pessimistic about improving capital allocation to black founders next year.

Richard Kerby, general partner at Equal Ventures, is hopeful that more diverse founders will get funding next year, but he doesn’t expect much of a change. “I think a lot of the narrative that a lot of investors put out about investing in more black founders was mostly just hot air and not much substance or real dollars flowing into black founders.”

We spoke with:

Alexis Alston, Director, Lightship Capital

What sectors will you continue to keep an eye on and what trends do you expect to take off in the coming year? Why?

I have always been interested in the ever-widening applications of AI, including generative AI, natural language processing, and deep learning. I’m really looking forward to seeing how AI can contribute to scaling areas of business previously run by humans, such as sales, social media, marketing, and content development.

As the fast-growing tech darlings begin to cut overhead, I think we’ll see a strong shift toward companies relying more on sales optimization and content creation tools as a substitute for once-in-your-face teams. very redundant.

What is the most pressing political issue you are watching and what impact does it have on you as an investor? Would you support a startup that addresses any of these issues?

There is a deep undercurrent reverberating right now around the expectations or lack of political oversight for more fledgling tech and financial products. In everything from crowdfunding to cryptocurrencies, there is a profound lack of oversight that is only now beginning to cause a ripple effect for many of our institutional and consumer investors.

As an investor, a lack of oversight has led to ultra-high valuations and unrealistic expectations of exit potential within these nascent markets. Ultimately, the everyday angel investor (who tends to be more representative of the general population than institutional investors) always gets the worst of it.

Given that the percentage of venture capital going to black founders has rarely exceeded 1%, do you think next year will be any different? Why or why not?

I’m not sure next year will be any different. If anything, I am very concerned that the number will decline in 2023 as institutional funds tighten their budgets or start looking at criteria for founders that often exclude black founders.

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