We find only six Black developers with annual revenue between $17 million and $49.9 million and only one Hispanic developer in this range. In contrast, we estimate that there are 382 white developers in this revenue range. At or above $50 million in annual revenue, we find no Black developers and only one Hispanic developer but we estimate that there are another 382 white developers with $50 million or more in annual revenue. (The fact that there are equal numbers of white developers in both categories is a coincidence.)

FIGURE 9 – REVENUE BREAKDOWN OF LARGE BLACK, HISPANIC, AND WHITE DEVELOPERS
Black and Hispanic developers are acutely underrepresented at the top of the industry and face revenue cliffs at $17 million and $50 million in annual revenue.

Compared to small and medium-sized developers, large developers generate a disproportionate share of revenue in our data, making them important for generating wealth and closing racial wealth gaps. According to our data, large developers make up less than 1 percent of the companies in our dataset but generate 64 percent of all revenue. Helping medium-sized developers grow above $17 million and large developers reach or exceed $50 million in annual revenue could, therefore, have a big impact in making the industry more diverse and equitable.