Getting started has a seemingly difficult problem: a lack of diversity. Despite research showing that diverse founding teams have higher yields than white founding teams. But one feature of startups remains unchanged: a shortage of BIPOC and women founders, investors, board members. and advisors in the venture capital (VC) ecosystem.Why should we care? Venture capital has funded some of the most innovative and profitable companies of our time — Apple, Amazon, Google (now Alphabet), just to name a few. These companies have changed the way we live, work and play. by affecting the way we communicate.
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How we process information and how we shop With about a quarter of professionals in the United States employed by the high-tech sector. This represents approximately 5% to 6% of the total workforce. According to the US Equal Employment Opportunity Commission report. Think about how innovation can happen to more diverse individuals. A table that brings different life experiences and perspectives. And we've seen that the state enacts laws. and companies has changed the practice To help this happen in the realm of public companies.Many of the VC-backed startup founders are white, male, and Ivy League or internationally educated.
Women-founded companies receive a small fraction of their investment compared to all male-led firms. In 2020, female-led startups receive only 2.3% of total VC money as of June 2021, less than 20% of the total. OK, all VCs have started with at least one female founder.Looking at the BIPOC representation in the VC ecosystem, the numbers are even worse. Three percent of VC investors are Black, and 1.7% of VC-backed startups have Black founders. The number of Latinx founders in VC-backed startups is lower — 1.3%. Only 2.4% of the funding was allocated to Black and Latinx founders between 2015 and August 2020, and in high-tech startups. Women seats only 8% of the total committee.
