Beyond the Funds: Why Contracts Are the New Pathways to Growth for Black Founders

Being a business owner isn’t for the faint of heart. How do I know? I live it.

In addition to being a global investment lead for Black Founders at 埃森哲 , I’m also the founder and CEO of My Block Skin , a mission-driven company that provides innovative and effective SPF solutions for the melanin-rich community. I’m all too familiar with the rollercoaster ride that is entrepreneurship. I know firsthand that being a business owner takes incredible courage, perseverance and, of course, funds to go into business for oneself. Being a Black founder is something else entirely, however. It’s where the buck stops, literally—Black founders face seemingly insurmountable setbacks that our counterparts don’t.?

That’s why 埃森哲 ’s Black Founders Development Program is pulling the curtain back on this disparity and offering tangible solutions. As a leader in corporate venture capital, it’s not just my job to help set up Black founders for success, it’s my personal mission and passion. As a founder and CEO, I’ve been on the receiving end of capital and social backing, but nothing is as gratifying as helping other founders accomplish their goals and realize their dreams.

As outlined in the program’s first report, Bridging the Black Founders Venture Capital Gap, published in 2022, Black founders face persistent challenges and systemic inequities, especially in securing venture capital. While that landscape still needs to improve, there’s another path to success that’s just as important: securing contracts. Doors can be opened not only with funds, but through corporate mentorship and strategic connections, which can lead to more contracts. ?

Over the past year, Accenture’s Black Founders Development Program has talked to dozens of Black founders. They’ve shared stories highlighting obstacles beyond access to funding, and provided insights into how to close those gaps.

Unlocking Powerful Networks

They say it’s not about what you know but who you know. We live in a world where it’s all about connections. Whether it’s via social media or through word of mouth, real-life human connections remain paramount. If you can’t get your business plan or innovative ideas in front of the right people, your business may not reach its full potential—ultimately, limiting your success.?

That’s where contracts come in—it’s all about building bridges, not just deals. Working with corporate venture capital (CVCs) and advancing contract opportunities for Black founders can be beneficial.

For Black founders, the backing of a CVC that actively works to integrate their solutions within the parent company's ecosystem can be transformative. It provides the dual benefit of financial support and practical market-entry strategies. A founder highlighted this by stating, “Getting our product integrated into the corporate client base is crucial. It's not just about funding, but about creating a pathway to real market access and growth.”

Creating Pathways?and Connecting the Dots

We aim to address these issues by advocating for more accessible contracting avenues for Black founders. Let’s face it: The funding problem is obvious, but VCs must actively engage one another in new ways to promote progress—even those beyond funding shortfalls.?

That’s why the Black Founder Development Program’s?mission is to empower entrepreneurs by facilitating access to capital, securing contracts and fostering a supportive community—quite simply, it’s Cash, Contracts and Community. It’s not a one-dimensional issue; it’s a collective problem that’s limiting enterprising prospects.?

One founder articulated this struggle, sharing that “the difficulty in securing initial funding, coupled with biases and a lack of networks, makes it an uphill battle. We have to work twice as hard to prove our business viability.”?

The lack of social capital is a significant barrier to success for Black founders who struggle with limited access to influential networks that could connect them to potential investors, partners and mentors. Plus, providing collaborative spaces where Black founders can build these vital networks is essential.?These spaces not only facilitate networking, but also create a sense of belonging and mutual support among entrepreneurs.

?One founder highlighted the importance of these environments: “Having access to a community of likeminded individuals and mentors who understand our challenges can make all the difference in navigating the early stages of business development.”

What’s Next?

As a CVC who’s listened to Black founders and can identify with their needs, I’m fully equipped and ready to help lay the groundwork for their success. The Black Founders Development Program is looking at new contracting frameworks that can open doors for founders across the ecosystem. We plan to provide in-depth details on how to contract, the value of contracting and scaling through contracting—all based on insights from Black leaders, Black founders and Black investors in the VC industry.

Black founders need a more integrated and supportive approach to venture capital, where their success is seen as a benefit to the entire ecosystem, fostering innovation, diversity and economic growth for founders across the board.

It’s time to shift gears and focus on other pathways for Black founders to grow and scale. Founders should explore strategic partnerships with CVCs because they not only provide funding but can also integrate them into their broader corporate ecosystem. ?

Overall, our goal is to offer realistic yet effective solutions to scaling Black businesses. We must remember that it’s beneficial for all when we widen the aperture of innovation. The time is now, and we’re up for the challenge.