Beyond Diversity
Diversity brings folks to the table. Inclusion asserts that each individual has a unique and valuable role to play and that their contributions are sought out and encouraged. When companies, organizations, and groups commit to Diversity, Equity, and Inclusion, the effort often focuses on diversity without commensurate attention provided to either equity or inclusion.
The omission of inclusion, for instance, has a significant impact on economic outcomes within those organizations. We must move beyond targeting diversity in venture capital toward taking an inclusive lens on investing to create an economy that works well for all of us.
Access to funding for entrepreneurs and founders of color has historically been dismal. Only 0.27% of venture capital went to Black women, with Latinas capturing slightly more funding at 0.37% between 2018 and 2019. Black female founders received .03 of total funding as of Dec 2020. 27% decline from previous year. In fact, all funding to Black-led ventures combined summed to less than 1% of venture capital deals — $1 billion of the total $150 billion invested. This isn’t just an issue of unfairness. It’s a massive blind spot in how companies are evaluated. Leaving people out means leaving value off the table.
Exclusion happens not only in the level of funding but also in how companies and products are built and brought to scale in the market. As a consequence, employees and customers are ill-served as well. Wealth and workplace inequity has implications across all economic segments and limits the creativity, innovation, and value creation that the market is capable of. Bright Ventures is on a mission to build an inclusive economy through a shift in the funding landscape and evolving leadership and engagement of stakeholders such as employees, customers, and investors.
The disparity runs much deeper than founders getting investment. If we want our economy to reflect the interest of all people — founders, employees, and customers — we have to invest in a different kind of business.
How can we do that? We must focus on the habits and mindsets of leadership that build businesses that support all stakeholders. Inclusive leaders fundamentally understand how to build a company that integrates the feedback of its stakeholders. They know that doing so creates long-term value and aligns the values-motivated market of today. Founders of Color and women are leading the charge in this domain.
So, how do we build a generation of businesses that actually serve the people they engage with? Learn more about how to build inclusive leadership that scales, here.
Lenore Champagne Beirne
Lenore is the founder of Bright Ventures, and an expert in Inclusive Innovation. Under her leadership, the team at Bright Ventures invests in and coaches startup leaders, and cultivates equity and access in the entrepreneurial ecosystem. Lenore is deeply committed to developing and partnering with leaders to build a future that represents the needs and interests of communities of color.
