Source - https://www.linkedin.com/pulse/real-reason-its-hard-founders-color-raise-vc-funds-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.