Editor’s Note: American Underground is owned by Capitol Broadcasting Company, WRAL TechWire’s parent company.

DURHAM – Here’s a call out to Black-led startups: this story is for you.

American Underground (AU) and Google for Startups are looking for roughly 10 startups to participate in its seventh annual Black Founders Exchange.

Established in 2016, the week-long immersion program targets high-growth startups in software, consumer product, Internet of Things, data, and other industries. It offers curated content, mentorship and community, taking companies from product and beta stage to pre-seed funding. Last year, 12 teams participated in the sixth edition of the Exchange.

Applications are currently being accepted until July 11.

The program will run October 2-7 at the American Underground in Durham.

“We’ve already seen about a dozen applications flow in,” Garry Lyon, the director of programs at American Underground, told WRAL TechWire. “We’re excited to see what these founders are building.”

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What’s happening

Funding to Black startup founders in the U.S. has always been disproportionately small. Dollars invested have fluctuated between 0.8% and 1.3% since 2017 per year as a proportion of U.S. funding, according to Crunchbase data. Despite an uptick last year in the wake of George Floyd’s murder, startups with at least one Black founder have received 1.9% of deal counts and 1.2% of overall venture dollars invested in the U.S. so far this year, its data shows.

That compares with the more than 13 percent of the U.S. population that is Black or African American.

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“It’s systemic,” Lyon said, referring to the funding gap. “There’s a disconnect across the board with venture capitalists and their perception of how well Black and female-led founders are trekking along that are building high-growth, revenue-generating companies. Through programs like Black Founders Exchange, our goal is to provide companies the connections and resources needed to expand globally.”

Based on a 2020 survey of its alumni network, 60 companies have gone through the program, he said. 94% of companies are still operational, and over 80% are generating revenue. According to Lyon, the average revenue is $250,000, and the average raised in roughly $1 million.

“In order to move the needle forward, programs like this must exist,” Lyon said. “It’s not an overnight thing. It takes work from leaders who are committed to leveling the playing field for black and female-led founders, who are typically locked out of the resources and knowledge that their white counterparts typically have access to out the gate.”

Google for Startups Black Founders Exchange picks 12 teams for Durham event