By Barrington M. Salmon
Contributing Writer
WASHINGTON — Arian Simone, co-founder and CEO of the Fearless Fund, is a rarity: a Black woman operating in the venture capital world which has traditionally locked out African Americans and women.
Simone was one of seven Black venture capitalists who joined U.S. Rep. Maxine Waters on a panel at this year’s Congressional Black Caucus’ Annual Legislative Conference Sept. 11-15. Members of the panel talked about their paths to success, the barriers they faced and best practices that create funding opportunities.
“Today we’re going to take this discussion to a new level, talking about, thinking about Black wealth and the wealth gap. Today we’re tackling something that is long overdue,” said Waters, who in a 40-plus-year career of public service, made history as the first woman and first African-American chair of the House Financial Services Committee.
Startups founded by Black entrepreneurs in 2023 received less than 0.5% of the $140.4 billion of U.S. venture capital funding, Waters said. Meanwhile, a mere 1% of those in the $70 trillion asset management industry are African American.
During the 90-minute forum, panelists talked about capital formation, investment opportunities, inequities, breaking down barriers and building wealth.
“Getting introductions and getting to venture capitalists is normally the biggest hurdle,” said Luke Bailey, co-founder and CEO of Neon Money Club, a digital collective that aims to drive financial growth and wellness for people on their own terms. “You have to walk into a room as an entrepreneur or business, not as a statistic. You have to maintain your cool and smile.”
Bailey said he talked to 100 investors and raised $9 million for his tech company and partnered with banks to build out his credit card company.
Diishan Imira, co-founder and CEO of Mayvenn, a California-based e-commerce company, said he learned hard truths and nuances about the venture capital world, and how to ask for what he needed. Imira sold hair extensions out of the back of his car in Oakland but eventually raised $85 million and revolutionized the hair care industry nationally. He signed up 50,000 Black hair stylists who had been buying their commodities from 10,000 Korean stores and has paid them $40 million.
Shonda Scott, CEO of 360 Total Concept, credited her parents, who started and built airport concession businesses, for the success she has enjoyed. Scott said she used savings and money from the Community Development Financial Institutions Fund, which allowed the company to finance startup and expansion projects. She also applied for $200,000 and partnered with a major conglomerate to manage contracts, construction and an assortment of projects.
“This is four generations,” said Scott of her family’s business foundation. “We have to understand that when we’re at the table, we have a responsibility. Some people act as if we’re not supposed to be at the table. I had a [Community Development Financial Institutions grant], a multi-billion-dollar line of credit, did the paperwork and six months later, I was denied.”
She said she was later given the money she requested.
Lo Tony is founding managing partner of Plexo Capital, an institutional investment firm he incubated and spun out from Google Ventures. The company invests in emerging seed-stage venture capitals led by diverse teams and invests directly into companies sourced from the portfolios of VCs where Plexo Capital has an investment.
“Black general partners see a lot, have insights,” he said. “We look for the money behind the money. We identify people and generate alpha funds.”
Eric Moore, founder of Base Ventures, runs a seed-stage fund that invests in technology companies. He said he’s an Angel investor who supports start-ups and other companies while linking “high network individuals, foundations and families” with those seeking venture capital funding.
“We need “white-boy” confidence. … It doesn’t take a lot of money to make money. A $50,000 investment I made became several million,” said Moore, a former investment banker.
Chris Lyons, president of Web3 Media, who Waters called “a rainmaker,” discussed his coupling of technology and culture. He has brought in celebrities like Serena Williams, Kevin Durant and Kevin Hart to become investors, entrepreneurs and spokespeople for cutting-edge tech companies.
“I’m usually the only brother in the room,” said Lyons, founder of the Cultural Leadership Fund, an inaugural venture capital fund made up entirely of Black limited partners. “People use culture to reach out. They’re not investing in companies we use but we’re getting access to rooms for funding and investment. Tech culture has entered Black culture. The next generation of wealth is in the tech world. We have to win deals and drive the next generation of wealth.
Barrington M. Salmon is a freelance reporter.
