The large majority of venture dollars are invested in companies run by white men with a university degree, according to a new report by RateMyInvestor and Diversity VC. This new data reveals that d...
Last July, I agreed to contribute a suggestion for this report. The report was published yesterday & the quote is still as necessary as ever. Quote: “VC's should make more of a deliberate effort to spend quality time with communities of color that are otherwise unfamiliar.”Systemic gaps won’t change overnight. They will take years if not decades or generations. Still, must continue building and persist forward.
There is obviously profit to be made in backing the underrepresented, in looking outside of SF, by finding the deals others aren’t. And yet year-after-year, we don’t see much change. Why not? We don’t need another report describing the state of the world - we know the problems. What I want are the root causes. What is actually going on here, that VCs are so predictably irrational about ignoring sectors that are transparently profitable?
. “VCs and founders tend to back/hire people who are in their existing network who most likely share the same views as them, went to the same school as them, and shared similar life experiences as them.”
Imagine how many more interesting products/companies would exist, how many different ideas, how many new role models we’d have, how much less bigotry would be in workplaces, how much more wealth underserved communities would have, how many more jobs would exist AND INDEED HOW MORE MONEY THESE WHITE GUYS WOULD MAKE IF THEY COULD JUST PULL THEIR HEADS OUT OF THEIR ASSES!
It goes beyond this: “VCs and founders tend to back/hire people who are in their existing network who most likely share the same views as them, went to the same school as them, and shared similar life experiences as them.”VCs have a mindset and a playbook. They look for patterns and take great pride in recognizing one pattern somewhere applies in a novel way somewhere else. Entrepreneurs looking for investment need to prepare so that they take advantage of this. But it is frustrating that lack of diversity is so entrenched and remains by far the most dominant VC model.