Can we make it work beyond the 1%?
CrunchBase data shows that Black and Latinx founders received just 2.6% of funding last year. And while female founders have started to see an uptick in funding this year, they still fared worse during the pandemic than their male counterparts.
It always seems to be the same story. It's never a level playing field. Them that's got shall have and those that need - well, you know the rest.
Things are starting to change but it's slow going. More and more investors are starting to see that there's real potential and innovation coming from people who don't look like they do or think the same way that they do. But is takes extra effort to find those opportunities.
You can read Basch's entire article but here are the key points in my mind:
1. Look around - The the best innovations and ideas don't all come from Silicon Valley and all the best deals aren't in NY or Boston or Atlanta. (And if I can add my own thought...every deal doesn't have to be a unicorn. More on that in another post)
2. Support good people - When I first interviewed VCs to ask what they wanted in a pitch (or presentation), they said, "Management, management, management." Now it seems to be money, money, money. Invest in people.
3. Not everybody looks like you - That's a good thing because it likely means not everybody thinks like you, has the same concerns as you, or had the same experiences. New points of view are powerful.
To sum up, yes it will be harder, more time consuming, and more costly to get out of your rut. But there are some really good businesses out there that could use your help - mentoring as well as money. And your odds of finding a hidden gem go way up when you search among the 99% rather than looking at a small sliver of the market.