Why are there so few black investors? by Richard Kirby

  • Source link: https://ker.by/why-are-there-so-few-black-investors-ef8eb9ccbe8a
  • TL;DR: Since the VC industry often operates as an “old boys’ club,” it is very difficult for anyone that isn’t a white male to break into the industry
  • How helpful?: 4/5
  • Topic Tags: ethnicity, demographics, diversity
  • Relevant questions addressed:
  • Why are there so few African Americans in the VC industry?
  • Summary bullet points
  • Tech industry suffers from a lack of diversity, which limits innovation
  • roughly 2% of the employees at Google, Facebook, Pinterest, LinkedIn and Yahoo are black.
  • NVCA (VC industry trade group) recently acknowledged the lack of diversity and formed an (all-white) task force to tackle the issue
  • Since VC often functions as an old boys club, most African-American entrepreneurs lack connections to investors who have access to funds
  • Increasing the representation of African Americans in Silicon Valley requires deliberate effort, especially considering the closed-circuit old boys’ club nature of the VC industry

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