The hot button issue in tech revolves around workplace initiatives. While many studies have been committed to the benefits of an improved diverse workforce, there is less commitment to the investing of diversity in tech startups. For example, did you know that less than 1% of funding goes towards black female investors? With such low chances of gaining funding, how can anyone expect black women to grow within the tech world without support.
To put it simply, “Diverse investors are going to look to fund people like them or with their type of background,” This comment was taken from Heather Hartnett, CEO and founding partner of New York-based Human Ventures. Hartnett is absolutely correct in her thinking. To understand a community, whatever race or gender or sexual orientation, it is best to hire someone from that community.
Currently there are many missed opportunities within communities that funding experts could benefit from. There are easily billions of dollars of revenue sitting in communities looking for solutions in a variety of areas be it fashion, entertainment, job placement, and more. I’ve said this before, but while diversifying your venture capitalist is a part of the solution, the major way to solve diversity issues is to move closer to communities with high diverse rates such as Houston, Atlanta, Miami, Chicago, and others. Right now investment dollars are based in the East and Western parts of America. In order to increase business opportunities a Renaissance must form where investing organizations move closer to the middle and southern states to connect with diverse startups. A million dollar company on the west is nice, but a $100 million company down south is even better.