The Superstar Tech Executive Who Didn’t Raise Venture Capital And Self-Funded Her Startup

Bozoma Saint John poses in front of BMW manifesto during NYFW.
Getty Images
While many celebrities and public figures such as Kim Kardashian, Gwyneth Paltrow, and Jessica Alba raised venture capital to launch their brands, Bozoma Saint John didn’t – instead, she flexed. She self-funded her Eve by Boz, a luxury wig, extensions, and hair care brand, with several million of her own hard-earned money.
Indeed not everyone indeed has that kind of personal capital to launch a brand; however, even when they do have that kind of money, they don’t invest in themselves. Saint John’s investment in her own brand is the ultimate flex, especially considering the systemic racism that diverse founders deal with, particularly Black female founders.
Systemic Bias In Venture Capital Allocations
Ahead of going on stage at SXSW, Shark Tank billionaire and Dallas Mavericks owner Mark Cuban took some time to give advice to Black women founders in a talk with Essence magazine, telling them to stop looking for funding. “I would tell you not to look for funding,” the shark said. “You have to figure out a way to use sweat equity to build it on your own, even if it means starting smaller and slower, because there is a learning process, and it’s twofold. One is learning about your business and making it loanworthy. Then, two is learning the language of those making the loans.” Cuban, like many early-stage VCs, espouses a very presumptuous and belittling opinion of Black female founders, presuming that they don’t know the language of business, venture, or finance and that they need to start at the remedial basics. Due to the systemic bias of VCs, “less than 1% of venture funding is going to diverse audiences, and even less than that to Black women.”
____________________________________________________________
Cuban, like many early-stage VCs, espouses a very presumptuous and belittling opinion of Black female founders, presuming that they don’t know the language of business, venture, or finance and that they need to start at the remedial basics.
____________________________________________________________
Despite the viability of their businesses and the large TAM, Black founders say there is waning interest in their brands from the financial community. VCs don’t always recognize the broad appeal or viability of their businesses or appreciate the problems that they are solving. While many female founders have raised millions at the idea stage for their beauty brands, Black female founders have difficulty raising capital even when they have purchase orders from major retailers. Black female founders carry a markedly higher burden when it comes to educating investors on the value and viability of their business ideas.