The real reason it’s hard for founders of color to raise VC funds by Porter Braswell

TL;DR - People of color face problems because of their race in the VC industry at alarming rates.

Helpfulness - 3

Topic Tags - statistics, VC, racism, diversity, founder strategy

Questions answered:

  • What is the state of racism in VC?
  • What biases do non-white people face in VC?
  • What should non-white founders do to increase their chances of funding?

Summary:

  • Founders of color find it harder to meet with VC than their white counterparts.
  • 47% of colored founders report some form of racism, but this is highly likely to be inflated.
  • “institutional biases, systemic racism, and a history of not having the same resources and opportunities” hurt the chances of non-white founders.
  • Founder advice on how to secure funding include:
    • Don’t focus on competition, but on your customers. Produce numbers because it is harder to have a bias on numbers.
    • Tell a good story that the investors can relate to from an industry level
    • Research the people you are pitching to, their team, portfolio companies, statistics, etc.