81% of VC firms don’t have a black investor by Kate Clark

TLDR:BLCK VC has been at work since the beginning of 2018, building and expanding a network of black investors in the San Francisco area, Los Angeles and New York. They seek to provide a community for black investors, a space for honest conversations and questions, and a resource for VC firms looking to make more diverse hires.

Helpful:4

Topic Tags: Venture Capital, Diversity

Relevant Questions:

  • Are African Americans well represented in the VC community?
  • How can African Americans be further supported?
  • Why are African Americans so underrepresented.

Summary:

  • According to data collected by Richard Kerby, a partner at Equal Ventures, 81 percent of VC firms don’t have a single black investor. Roughly 50 percent of black investors in the industry are at the associate level or the lowest level at a firm; only 2 percent of VC partners are black.
  • The lack of representation, especially in powerful positions, has made it difficult for black aspiring investors to enter the industry, as well as for black investors to stay in VC.
  • Aside from Kerby’s data and a Harvard Business School study on diversity in innovation, there is limited data available on black VCs and funding for black founders.

Follow Up Questions:

Which VC firms to represent the black community well?