Mark Cuban's Advice to Black Women Entrepreneurs: Why Bootstrapping Beats Venture Capital

 

Mark Cuban’s advice to Black women founders to "stop looking for funding and build it on your own" has sparked important conversations about the barriers that Black women entrepreneurs face in securing capital. Cuban emphasized the importance of leveraging sweat equity and financial literacy to create businesses that are strong enough to be loan-worthy when the time comes.

Statistics from Stearnsbank reveal that Black women founders are three times more likely to be rejected for business funding compared to white business owners. This funding gap is also seen in venture capital, where only 2% of VC funding nationwide goes to female-only founding teams. The Fearless Fund, which specifically invested in women of color entrepreneurs, was recently forced to shut down its grant program due to a lawsuit claiming racial discrimination, further exacerbating the funding challenges for Black women.

Cuban’s Alternative Approach

Instead of relying on traditional funding avenues, Cuban suggests that Black women founders focus on building their businesses through alternative means such as:

• Sweat Equity – Starting small, reinvesting profits, and growing organically.

• Financial Literacy – Understanding financial statements, loan requirements, and business credit to become more attractive to lenders when necessary.

• Avoiding Predatory Lending – Many businesses fall into the trap of high-interest loans and unfavorable terms. Cuban warns against taking bad deals out of desperation.

Other Funding Options

Despite the challenges, there are still grants and funding opportunities tailored for Black women entrepreneurs. For instance, Block Advisors by H&R Block offers grants worth $100,000 to support Black businesswomen​. Additionally, organizations such as IFundWomen of Color, the Amber Grant for Women, and Hello Alice’s Small Business Growth Fund provide non-equity funding options that don’t require giving up ownership or taking on debt.

Here are some business grants available for Black women entrepreneurs in 2025 that you may want to consider applying for:

Monthly and Quick-Win Grants:

• Amber Grant for Women – $10,000 monthly, plus a chance for a $25,000 annual award.

• HerRise Micro-Grant – $1,000 grants for women of color entrepreneurs, awarded monthly.

Major Growth Grants:

• EmpowerHer Grant – Offers up to $25,000 for business expenses and a $30,000 Her Village Grant for nonprofits supporting female entrepreneurs.

• Comcast RISE – Provides $10,000 grants plus marketing and technology support.

Money & Mentorship Programs:

• Tory Burch Foundation Fellowship – A $5,000 grant with mentorship and networking opportunities.

• Amazon Black Business Accelerator – Financial support plus business mentorship and marketing assistance.

• McKinsey’s Next 1B Program – Grants for Black-owned brands with annual revenue between $250K and $5M, along with expert consulting support.

Tech & Innovation Opportunities:

• Small Business Innovation Research (SBIR) Program – Offers six-figure grants for research and development-focused businesses.

For more details on these opportunities, you can check out the full list at Essence: Essence Business Grants for Black Women​.

Takeaway

Cuban’s advice is practical in highlighting the need for resilience, financial education, and strategic business growth. However, Black women entrepreneurs shouldn’t be discouraged from seeking fair and equitable funding opportunities where available. A hybrid approach—bootstrapping while actively looking for grants and trustworthy investors—may be the best path forward.