Based on a recent study by RateMyInvestor and DiversityVC, which can be found here, of the 10,000 Founders in the past five years for U.S. venture-backed startups, over 70% of the Founders are Caucasian Men, with the remaining 30% consisting of:
Female Founders: 9% or 900 Women
African-American Founders: 1% or 100 African-Americans
Latino-American Founders: 2% or 200 Latino-Americans
Asian-American Founders: 18% or 1,800 Asian-Americans
Source: Aidos Inc., RateMyInvestor, DiversityVC; Diversity study of 10,000 Founders in the past five years for U.S. venture-backed startups reveals startling statistics.
These numbers are disturbing indeed, but canDiversity Investingimprove investment returns, as measured by investment metrics like IRRs (internal rate of returns) and MOICs (money on invested capital), for a VC’s underlying investors — the limited partners or LPs?
We believe so, but it requires redefining what “Diversity” means.
Learn more by reading why Diversity Matters in Venture Capital.