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
- 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?
- 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.