Business News
Venture capital for Black entrepreneurs plummeted 45% in 2022, data shows


Bea Dixon, the CEO and co-founder of The Honey Pot Company
Courtesy: Honey Pot Company
In 2016, Beatrice Dixon had finally secured a deal with Target to carry her line of feminine care products. But she had one problem: She was still making them in the kitchen of her Atlanta home, and she needed to scale up — fast.
The CEO and co-founder of The Honey Pot Company, a vaginal-wellness brand, was faced with the “impossible” task of launching in 1,100 stores and needed funding to bring on manufacturers so she could deliver on the retailer’s orders.
She managed to secure that crucial round of financing from the New Voices Foundation, a fund led by Richelieu Dennis that’s devoted to supporting women entrepreneurs of color. Using that financing, and some funding from family and friends, Dixon was able to quit her job, move operations out of her kitchen and launch in Target stores nationwide by 2017.
Some six years later, Dixon’s products are a staple in retailers across the country.
“It was really hard, man, we weren’t having any luck,” Dixon told CNBC in a recent interview about the struggles she faced securing investors. “I don’t know what would have happened if we didn’t get that money.”
Dixon is one of many Black entrepreneurs who struggled to secure funding for their businesses and relied on venture capital financing earmarked for diverse founders. While Dixon and many others have ultimately succeeded, Black-led businesses and Black founders have historically faced disparities in securing VC funding.
Overall, Black entrepreneurs typically receive less than 2% of all VC dollars each year while companies led by Black women receive less than 1%, according to data from Crunchbase.
In the wake of the police murder of George Floyd and the racial justice reckoning that followed, Black founders and Black-led startups saw historic gains in securing VC funding in 2021. However, as momentum around the movement fizzled and market conditions worsened, a lot of those gains were lost by the end of 2022.
While overall VC funding dropped by 36% in 2022 as inflation and interest rates surged, financing for Black businesses saw a steeper drop of 45%, according to the Crunchbase data. That drop is the largest year-over-year decrease Black entrepreneurs have seen over the past decade.
“There were a lot of political and cultural strife problems in 2020 and early 2021 that created a higher focus on Black and diverse founders,” said Kyle Stanford, a senior analyst at Pitchbook. “No one wants that to be the reason why they focus on investing in any group, but that did put a lot of focus on the problems that VC has had investing in anyone outside of a straight white male.”
Marlon Nichols, the co-founder and managing general partner of MaC Venture Capital, said diverse businesses tend to take the brunt of VC slowdowns because firms typically resort to the status quo in times of economic uncertainty.
“We’ve always invested in white men and that’s what we’re going to do right now. That’s where we’re comfortable. That’s where we know and believe that we’re going to get the return,” is how Nichols, who is Black, described the decisions made by some firms. “This diversity thing is cool, we’ll pick it back up maybe, you know, once we’ve weathered this storm.”
So-called ‘risky bets’
In 2014, Dixon was working at Whole Foods and suffering from an ongoing case of bacterial vaginosis that she wasn’t able to shake. Then, she said, her late grandmother came to her with a solution — in a dream.
“She just told me that she had been walking with me and seeing me struggle and she knew how to fix it, and she basically hands me a piece of paper that has a list of ingredients on it and she tells me to memorize what’s on the paper,” Dixon said, recalling the dream of her grandmother. “I made it within a couple of days, and, basically, this formula actually healed me.”
The mixture, which included ingredients such as lavender, apple cider vinegar, grapefruit seed extract and rose, worked for family and friends, too, Dixon said. Using a $21,000 loan from her brother, she began selling the product and displaying it at trade shows and expositions.
Honey Pot Company products
Courtesy: Honey Pot Company
Using her connections at Whole Foods, she got the product on the shelves of the store but wasn’t able to seriously scale up and attract outside investors until she secured the deal with Target.
“It was hard. Us being Black-owned business founders, was it harder? Sure, it probably was,” said Dixon. “I think every time we raised money, we had trouble doing it, you know, but I think that the important context to put there is that anybody that raises money, it’s not going to be easy.”
While he doesn’t invest exclusively in diverse businesses, Nichols said he’s more likely than some venture capitalists because MaC Venture Capital is led by a diverse team unlike other firms that are typically run by white men.
“The investors are primarily white and male and usually come from affluent communities, which means that they have very specific experiences and have been exposed to very specific things and are comfortable with very specific things,” said Nichols, whose latest firm opened in 2019.
To many firms, investing in founders from diverse backgrounds is considered a riskier bet because the entrepreneurs differ from the norm they’ve become accustomed to, said Ladi Greenstreet, the CEO of Diversity VC, which works to tackle systemic bias within venture capital.
In the aftermath of Floyd’s murder in May 2020, many major banks, corporations and investment firms pledged to change that — and make diversity a top priority moving forward.
However, the steep funding drop-off Black founders saw in 2022 indicates some of those promises may have been short-lived charity plays rather than investments that firms actually believed would bring in strong returns.
“When you take venture capital financing, the expectation is that, you know, you have a partner now, if you perform, your partner is going to continue to back you, they’re going to help you to raise that next round of funding, right?” said Nichols.
For white-led teams, there’s no expectation that recipients have to be “extraordinary” in their first two years of operations in order to get follow-on funding, but the bar is far higher for Black entrepreneurs, said Nichols, whose firm manages about $450 million in assets.
“For most of these Black founders, that’s exactly like the expectation, you’ve got to be extraordinarily exceptional in order to get additional capital,” he said. “And if you’re truly treating this like all investments that you make then that shouldn’t be the case.”
‘Huge blue ocean’
Pocket Sun is the co-founder and managing partner of SoGal Ventures, a VC firm devoted to supporting women and diverse entrepreneurs. Since the firm opened in 2016, it has seeded multiple unicorns, or startups that grew to have valuations over $1 billion. The businesses include Function of Beauty and Everly Health.
“From a financial investment perspective, this remains a huge blue ocean for people to dive in,” said Sun.
“Venture capital is a very privileged and exclusive industry, and has always been that way. And it has such disproportionate decision-making power on the future of technology, the future of innovation, the future of quality of life in many ways,” said Sun.
While investing in diverse teams can often be seen as a moral imperative and something that’s done because it’s the right thing to do, studies have shown it can lead to higher returns for investors, said John Roussel, the executive director of Colorwave.
Honey Pot Company products
Courtesy: Honey Pot Company
“And somehow, we’re still stuck in this situation where we’re trying to convince people of that,” said Roussel, whose organization connects early stage founders to mentors and capital. “It really takes, you know, strong players taking a lead and showing people that there is opportunity here and there is generally the same success rates regardless of someone’s skin color.”
Dixon, the founder of The Honey Pot, pointed to her own success as an example. “Clearly, it’s safe to bet on Black businesses,” she said.
Products from the company are now in 4.6 million homes, nearly double the number from two years ago. They are also sold nationally in retailers such as Walmart, CVS, Walgreens and more. The Honey Pot didn’t share its current valuation or how much it makes in annual sales.
Dixon called on investors to put their biases aside and see companies for their basics: balance sheets, innovation strategies and business goals, not the skin color of its teams.
“My skin color shouldn’t be a part of the conversation, period,” she said. “And yet, it still is, right?”
Business News
From Cartel to Evangelist: The Inspiring Journey of Juan Reyes, Puerto Rico’s Entrepreneur and Author

In the realm of entrepreneurship, few stories are as captivating and inspiring as that of Juan Reyes, a self-made entrepreneur and author hailing from Juncos, Puerto Rico. Despite being born into a low-income family, Reyes defied the odds and carved his path to success through sheer determination, hard work, and an unwavering commitment to his goals. From establishing thriving businesses to becoming a renowned author, Reyes’s journey exemplifies the transformative power of entrepreneurship and the indomitable spirit of an individual driven by faith and dedication.
A Journey Born out of Necessity
Growing up in Juncos, Puerto Rico, Juan Reyes faced significant challenges stemming from his family’s financial limitations. To support himself and contribute to his family’s well-being, Reyes began working from a young age. However, he never allowed his circumstances to dampen his dreams or extinguish his ambition. Determined to change his destiny, Reyes embarked on a path that would not only uplift his own life but also inspire countless others.
A Multifaceted Entrepreneur
Reyes’s entrepreneurial acumen led him to establish several successful ventures that have made a profound impact. Among his notable accomplishments are King of Credit Repair LLC, KCL Clothing Inc, and Shalom Renovation LLC. These enterprises not only generated substantial revenue but also provided employment opportunities for others. Reyes’s astute understanding of business markets, coupled with his expertise in real estate, notary services, modeling, and preaching, contributed to his ability to transform businesses from scratch into multi-million dollar ventures.
Authorship and Beyond
In addition to his entrepreneurial pursuits, Juan Reyes is also a respected author. His debut book, “From the Cartel to the Evangelist,” has garnered significant attention and acclaim. This captivating literary work chronicles Reyes’s personal journey, from overcoming adversity to finding redemption and purpose through his faith. The book serves as a testament to Reyes’s resilience and unwavering determination, inspiring readers to believe in their own potential and navigate their own paths to success.

Sponsored by Christian Faith Publishing
Reyes’s literary endeavors have received a significant boost through the sponsorship of Christian Faith Publishing. This collaboration has allowed Reyes to reach a wider audience with his powerful message of transformation, faith, and the pursuit of entrepreneurship. The partnership between Reyes and Christian Faith Publishing (visit the website here) has opened doors for him to inspire and motivate aspiring entrepreneurs and individuals seeking personal growth.
Empowering Others
Recognizing the significance of his own journey, Juan Reyes has made it his mission to give back to society and uplift others. Through speaking engagements and mentoring programs, Reyes shares his knowledge, unique ideas, and experiences with business leaders and young individuals alike. His teachings have become a beacon of hope for those who have faced similar challenges and made similar mistakes, demonstrating that even a fallen business can rise to great heights.
The Pride of Juncos, Puerto Rico
Juan Reyes remains deeply connected to his roots in Juncos, Puerto Rico. His success story has not only become a source of pride for the local community but also an inspiration for the youth in the neighborhood. Reyes’s achievements serve as a testament to the transformative power of entrepreneurship, instilling hope and motivating aspiring entrepreneurs to strive for greatness despite their circumstances.
Conclusion
Juan Reyes’s journey from a humble upbringing in Juncos, Puerto Rico, to becoming a renowned entrepreneur and author is a testament to the triumph of resilience, determination, and faith. Through his businesses, writing, and mentorship, Reyes exemplifies the boundless potential that lies within every individual. He reminds us that with unwavering dedication and a strong belief in oneself, anyone can rise above adversity and create a life of purpose and success. Juan Reyes is an inspiration, not only to entrepreneurs but to all those who dare to dream big and overcome the odds.
Business News
Disney CEO Bob Iger rips Ron DeSantis over ‘anti-Florida’ retaliation

Bob Iger, CEO, Disney, during CNBC interview, Feb. 9, 2023.
Randy Shropshire | CNBC
Bob Iger on Monday called Florida Gov. Ron DeSantis’ actions against The Walt Disney Co. retaliatory, “anti-business” and “anti-Florida.”
The feud between DeSantis and the company escalated earlier Monday, when the governor asked the state’s inspector general to determine whether the House of Mouse’s sly move to retain control over the outer limits of Orange and Osceola counties is legal – and whether any of the company’s executives were involved in the scheme.
During the company’s annual shareholder meeting Monday, Disney CEO Iger addressed investor inquiries about the ongoing dispute between the company and Florida legislators. He noted that Disney has more than 75,000 employees in the state, and has created thousands of indirect jobs, as well as brings around 50 million visitors to Florida every year and is the state’s largest taxpayer
“A year ago, the company took a position on pending Florida legislation,” Iger said, apparently referring to what critics called the “Don’t Say Gay” bill. “And while the company may have not handled the position that it took very well, a company has a right to freedom of speech just like individuals do.”
He added: “The governor got very angry about the position Disney took and seems like he’s decided to retaliate against us, including the naming of a new board to oversee the property and the business. In effect, to seek to punish a company for its exercise of a constitutional right. And that just seems really wrong to me.”

Iger said Disney plans to spend more than $17 billion in investments at Walt Disney World over the next decade, which would create around 13,000 jobs at the company and generate even more taxes for Florida.
“Our point on this is that any action that supports those efforts simply to retaliate for a position the company took sounds not just anti-business, but it sounds anti-Florida,” he said. “And I’ll just leave it at that.”
Last week, DeSantis’ newly appointed board of the Reedy Creek district, now named the Central Florida Tourism Oversight District, revealed that the previous Disney-allied board signed a long-lasting agreement that drastically limits the control that can be exercised over the company and its district.
Florida Governor Ron DeSantis speaks during ‘The Florida Blueprint’ event on Long Island, New York, United States on April 1, 2023. Ron DeSantis made comments on the Grand Jury’s indictment of Donald J. Trump, 45th President of the United States in Manhattan, New York.
Kyle Mazza | Anadolu Agency | Getty Images
The agreement was signed on Feb. 8, the day before the Florida House voted to put DeSantis in charge. DeSantis replaced all of the Disney-allied board members with five Republicans on Feb. 27. It was only then that Disney’s new binding agreement was discovered.
The agreement includes a clause that dates back to 1692 in Britain. The “Declaration shall continue in effect until 21 years after the death of the last survivor of the descendants of King Charles III, King of England, living as of the date of this declaration,” the document said.
The governor’s letter calls the board’s agreement an attempt to “usurp the authority of the CFTOD board” and “nullify the recently passed legislation, undercut Florida’s legislative process, and defy the will of Floridians.”
He said at the agreement also has “legal infirmities” including inadequate notice, improper delegation of authority and ethical violations.
Disney, however, has said that all of the board’s maneuvers were completely legal — the agreement was discussed and approved in open, noticed public forums, in compliance with Florida’s Sunshine law.
The development in DeSantis’ conflict with Disney marks just the latest move in one of several partisan battles being waged by the Republican governor.
DeSantis is widely believed to be laying the groundwork to launch a 2024 presidential campaign. That move is expected to come not long after the current Florida legislative session ends in early May. Polls show that DeSantis is the most competitive of the potential opponents for former President Donald Trump in a GOP primary.
The Florida governor took aim at Disney after the company publicly balked at Florida’s HB 1557 law early last year. HB 1557, which critics called the “Don’t Say Gay” bill, limits early education teachings on sexual orientation or gender identity.
Republican state Rep. Randy Fine told CNBC’s “Squawk Box” last April that the bill dissolving Reedy Creek wasn’t retaliatory, but then said “when Disney kicked the hornet’s nest, we looked at special districts.”
Until recently, there had been no major public discussion about dissolving Disney’s long-established special district, which it’s occupied for 55 years, leading DeSantis’ critics to question its timing and the speed at which the governor acted against the company.
The fight between DeSantis and Disney shows no signs of slowing down. During a book tour stop in Georgia last week, DeSantis told attendees “You ain’t seen nothing yet.”
Business News
WWE near deal to be sold to UFC parent Endeavor, sources say

World Wrestling Entertainment Inc. Chairman Vince McMahon appears in the ring during the WWE Monday Night Raw show at the Thomas & Mack Center August 24, 2009 in Las Vegas, Nevada.
Ethan Miller | Getty Images
Vince McMahon’s World Wrestling Entertainment is in advanced talks to be sold to Ari Emanuel’s Endeavor Group, the parent company of UFC, according to people familiar with the matter.
A deal could be announced as soon as Monday. UFC and WWE are expected to form a new publicly traded company as part of the agreement, according to the people, who declined to be named due to the confidential nature of the discussions.
Endeavor is slated to own 51% of the new combat sports and entertainment company, while WWE shareholders would get 49%, according to the people. The Endeavor deal gives WWE an enterprise value of $9.3 billion, they said.
Emanuel is expected to act as chief executive of both Endeavor and the new company. McMahon, likewise, is expected to be executive chairman, while Endeavor President Mark Shapiro will also work in the same role at the new company. Dana White will remain as president of UFC, while WWE CEO Nick Khan will serve as president of the wrestling business.
The development comes during the same weekend WWE hosts its flagship live event, WrestleMania, in California. The company has spent the past several months looking for a buyer. McMahon returned to the company as chairman in January to oversee the process. Shares of WWE are up more than 33% so far this year, giving it a market value of more than $6.79 billion.
The deal will effectively end WWE’s decades-old status as a family-run business. McMahon’s father founded WWE in its original incarnation during the middle of the 20th century, and McMahon is the controlling shareholder in the company. McMahon bought the company from his father in 1982. Since then, the company has grown into a global phenomenon, spawing stars suck as Hulk Hogan, Dwayne “The Rock” Johnson, Dave Bautista and John Cena.
McMahon, 77, retired from the company in July following a string of revelations that he paid several women millions of dollars over the years to keep them quiet about alleged affairs and misconduct. His daughter, Stephanie McMahon, became co-CEO alongside Khan. Paul Levesque, who’s both Stephanie McMahon’s husband and the wrestler known as Triple H, took over creative duties from Vince McMahon.
When Vince McMahon came back in January, Stephanie McMahon stepped down and Khan fully assumed the CEO role. The elder McMahon recently locked in a two-year employment contract, according to a securities filing.
Khan in recent weeks has been making the media rounds to discuss the potential sale. He told CNBC’s Morgan Brennan on Thursday that it’s been a robust sale process, drawing many interested buyers.

WWE brings with it a robust media and live events business, along with its decades worth of intellectual property. The company generated $1.29 billion in revenue last year, driven mainly by its $1 billion media unit.
UFC has paid off for Endeavor. Last year, the MMA league helped Endeavor’s sports business make $1.3 billion in revenue. Endeavor’s market cap stood at about $10.53 billion as of Friday’s close. The Endeavor-WWE deal values UFC at more than $12 billion.
WWE, at least at a glance, would also fit well with the cultures at Endeavor and UFC. McMahon has a brash public persona, making him an apparently good match for Emanuel and White, who are also known for their outsized personalities.
White, like McMahon, is no stranger to scandal, either. Earlier this year, video emerged showing the UFC boss slapping his wife during a public argument at a New Year’s Eve party in Mexico. White apologized.
Disclosure: Peacock, the streaming service owned by CNBC parent NBCUniversal, carries WWE events such as WrestleMania.
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