It Doesn’t Add Up
Infographic: Why Underrepresented Founders Should Be Invested In More
(Infographic) Why More Capital Should be Invested in Diverse Founders
After I attended the Camelback Ventures Entrepreneur Showcase last week, I felt confident that my thesis — that there is an imbalance between the number of high potential startups founded by underrepresented founders and venture capital that their startup companies are able to raise — was true. But I felt I only had that gut feeling (which is vital in early stage investing) and nothing else to stave off my curiosity.
Proof of Concept
What I learned from Camelback Venture’s Inspiring 2016 Showcasemedium.com
So I decided to conduct some research and explore some notable reports on the subject of Minority and Female Entrepreneurship. I took some time to read a few articles and skim research reports such as the Center for Global Policy Solutions’ “Color of Entrepreneurship” report and digitalundivided’s “#ProjectDiane” report. My goal for this market research was to get directional answers (please excuse my leftover consulting jargon) for the following questions:
What is the state of Minority & Female Entrepreneurship in the US?
Is there a funding gap with respects to Minority/Women founders and if so, what could contribute to that gap?
What is the economic impact in the US of under-investing in our diverse entrepreneurship segments?
I was able to find data on each of these issues but of course, I couldn’t simply share these findings through bullets — I had to do something more creative (for some reason). I wanted to create something that captured my thought process as I read these various articles and reports — that’s right, I created an infographic. You can find the final version here but below are the four separate section of my infographic entitled “It Doesn’t Add Up: Why Underrepresented Entrepreneurs should Receive more Investment Capital.” Please feel free to provide me with feedback or suggested research reports in the comments section!
What is the state of Minority & Female Entrepreneurship in the US?
Is there a funding gap with respects to Minority/Women founders and if so, what could contribute to that gap?
What is the economic impact in the US of under-investing in our diverse entrepreneurship segments?
Sources include the following:
Center for Global Policy Solutions — The Color of Entrepreneurship: Why the Racial Gap Among Firms Costs the US Billions
DigitalUndivided — #ProjectDiane Report
Kauffman Index — 2015 Startup Activity National Trends
Other interesting articles I found:
Fast Company— “The Racial Gap In Entrepreneurship Is Costing The U.S. Economy Billions”
Fortune — “The fastest-growing group of entrepreneurs in the U.S.? Minority women”
Tech.Co — “Only 7 Percent of Investor Money Goes to Women-Led Startups”
Earnest Sweat is an Entrepreneurial Engineer for Camelback Ventures and an Investor in Residence for Backstage Capital. If you have any questions or requests please connect with Earnest through LinkedIn, Twitter, or AngelList.
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