Ami Colé, a beauty startup focused on makeup for darker skin tones headquartered in New York, will cease operations in September 2025.

Founded by Diarrha N’Diaye-Mbaye in 2021, the company gained recognition for its inclusive beauty products and was sold through retailers such as Sephora.

N’Diaye-Mbaye, one of the few Black women to secure over US$1 million in venture capital, announced the closure in an article for “The Cut”.

She attributed the decision to challenges in sustaining the business within the current market.

Ami Colé raised over US$3 million in funding from investors including G9 Ventures, Greycroft, and angel investors like Hannah Bronfman.

The closure highlights broader challenges faced by Black-founded startups.

Venture funding for Black entrepreneurs has decreased in recent years.

N’Diaye-Mbaye mentioned pressures from investors and competition with larger companies, despite having a loyal customer base.

Ami Colé did not respond to requests for comment.

🔗 Source: TechCrunch

🧠 Food for thought

1️⃣ Post-2020 DEI funding surge followed by sharp decline creates challenging environment for Black founders

Ami Colé’s closure reflects a broader pattern of declining support for Black-founded startups after an initial surge following George Floyd’s murder in 2020.

Black founders received only 0.4% of total startup funding in 2024, representing a multi-year low and demonstrating how quickly investor enthusiasm for diversity initiatives has waned 1.

N’Diaye-Mbaye directly acknowledged this shift, noting that some investors’ attitudes toward equity and “betting big on inclusivity” had noticeably changed from what she experienced in 2020, contributing to the company’s sustainability challenges.

The funding landscape for Black entrepreneurs has become increasingly difficult despite specialized programs emerging to address the gap, with organizations like Black Ambition Prize and Google for Startups Black Founders Fund attempting to counter this trend 1.