When it comes to Venture Capital everyone within the industry understands that there is a diversity problem. According to Forbes, one “report from 2016 found just 9% of UK startup funding ended up going to companies with a female founder, while another report last year found just 13% of key decision-makers in Britain’s venture capital industry are women, highlighting just part of the problem.”
While these numbers are important, this does not do a good job on understanding the bigger problem. Why is this happening?
Diversity VC, a policy group which has made it its focus to uncover data on diversity in venture capital, has team with the state-owned British Business Bank and the British Private Equity and Venture Capital Association (BVCA) to launch a research initiative to uncover the “Why” behind diversity failings. Ten leading British VCs have agreed to participate in this initiative by handing “over anonymized demographic data of every startup they meet, giving researchers an insight for the first time into the prefunding startup sector.”
The data will include the gender, ethnicity, origins and time frame/length of funding discussions. The ten VCs that have agreed to share their diversity data include Atomico, Balderton Capital, Draper Esprit, Amadeus Capital, Frog Capital, Frontline Ventures, LocalGlobe, Notion Capital, Oxford Capital and Scottish Equity Partners.
The plan is for the first tranche of diversity data to be published this autumn.