41. Black Seed VC – addressing the funding shortfall for Black founders

DEI Award – Winner

For the business that demonstrates committed diversity, equity, and inclusion initiative and how it has been embedded in the company.

Startups 100: DEI Award

Founder: Karl Lokko
Founded: 2021
Website: blackseedvc.co.uk

There’s an ugly statistic that has finally had a harsh light shone on it in the past year. In the UK, just 2% of venture capital funding goes to all-female founding teams. But, while this is an eyesore on the investment landscape, there’s an even more glaring stat lurking alongside it.

“Only 0.24% of venture capital was allocated to Black founders over the past decade,” Karl Lokko tells us. It’s an extraordinary shortfall that is hindering huge economic potential.

“Black entrepreneurs in the UK start businesses at a faster rate than the national average,” says Lokko. “This gap in funding represents a significant opportunity to drive meaningful change and foster innovation.” 

Only 0.24% of venture capital was allocated to Black founders over the past decade

Having spent a decade campaigning and advocating for a fairer and more inclusive business ecosystem, the tragic and highly publicised murder of George Floyd served as a catalyst for Lokko  to create a vehicle for the change he wanted to see. “It became clear to me that without the distribution of economic resources, true equity would remain out of reach.”

Black Seed VC was launched as – quite starkly – the first and only Black-led venture fund in Europe dedicated to investing in Black founders.

Of course, as an emerging fund, there were inherent difficulties in raising capital, with little established track record prompting potential hesitancy among investors.

It became clear to me that without the distribution of economic resources, true equity would remain out of reach

Undeterred, Lokko worked to sell his vision to the likes of M&G Catalyst, Molten, Local Globe, West River Group, and Atomico, all of whom have come aboard the fund. 

Meanwhile, Natwest Bank has joined as a corporate partner for Black Seed VC’s flagship Lyan’s Den event. This features workshops, fireside chats, interactive sessions, networking, and a pitch event with a £10,000 cash prize; all crafted to foster entrepreneurship.

These successes have helped to turn Black Seed’s vision into an initiative with real impact, making it a deserved winner of the Startups 100 DEI Award for 2025.

With a clear-sighted focus and momentum building among its investing partners, Black Seed VC is positioning itself to fill a critical gap in the entrepreneurial ecosystem.