This weeks featured article is an insightful story from Forbes on how firms like BLCK VC are working to improve diversity in venture capital funding. Venture Capital is severely lacking in diversity, “The share of venture capital dollars managed by Black men and women is less than 1% for each.” While there are emergence of new businesses and need for capital, “Black founders have only raised 1.2% of venture dollars.” While many firms might “say” they are committed to inclusion, statistics are not backing these claims. Mandy Bynum Laughlin, CEO at BLCK VC, is making an impact in the world of venture capital by becoming an angel investor and limited partner in venture funds. She is investing in illiquid assets which are not “easily sold or converted into cash” such as real estate or private equity. What is so interesting about her approach is that she is backing younger and smaller startups and helping them build from scratch. She is taking a chance on these businesses and realizes that it is an investment for the long-haul. It is essential for others to support smaller startups and help those in their communities. Funding equity is essential in business investments, it is more than philanthropy, it will create more opportunities. It will allow those who have great ideas and business ventures but are lacking the capital. In order to be inclusive, we must create platforms and ways for people to enter the market and succeed.
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