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New funds multiply in 2021

Fairview Capital’s 2021 Market Review of Woman and Minority-Owned Private Equity and
Venture Capital Firms shows growth among Black investment houses

Over 30 years, Fairview Capital, founded by Lawrence Morse and Jo Ann Price, has raised $10 billion.  Its annual report since 2014 has Fairview’s data on the size, evolution, and current characteristics of the universe of woman and minority-owned private equity and venture capital firms (firms majority owned by women and/or ethnic minorities in the US). In 2021, Fairview found that this set of diverse private equity and venture capital firms is larger and more dynamic than ever before

It was a record year for African-American-led firms, with 84 African-American owned firms in the market during the year, a 25% increase compared to the prior year. Also 87% of African-American firms in the market were raising a first-time fund.

Approximately 94% of African American woman-led firms were raising first-time venture capital funds. Further, African American woman-owned firms were targeting a $30 million median fund size, well below the $100 million median fund size for the broader universe of woman and minority-owned firms and the broader industry.