VCs sound off on how restrained funding could affect female founders - Business Insider

  • 📰 BusinessInsider
  • ⏱ Reading Time:
  • 54 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 25%
  • Publisher: 51%

Canada News News

Canada Canada Latest News,Canada Canada Headlines

Wary VCs are pulling back into their close circles of trust. That's bad news for women founders and other long-excluded entrepreneurs, one study finds.

. In the absence of face-to-face meetings, some have fallen back on founders they have worked with previously, or they want a warm introduction from early-stage investors they trust in lieu of meeting a new entrepreneur in person. But that can spell trouble for early-stage founders who don't belong to those traditional social groups.people tend to revert to hiring, backing and choosing people like themselves, within their tight networks,'' the Jane VC report observed.

Hazard is also a member of X Factor Ventures, a Boston-based fund that promotes and invests in the underrepresented founders that are most at risk. But Hazard said that the changes taking root in the venture ecosystem right now could be a benefit to them in the long run. In 2020, white female founders raised $0.38 for every male founder's $1. The gap is even larger for black female founders, who raise just $0.02 for every male founder's $1. Even the smallest decrease in funding to underrepresented and minority groups could have devastating impacts down the line.

Over the last several years, diversity has become something of a rallying point for founders and investors alike, with smaller niche venture firms like Jane VC cropping up to support the growing network of female and minority founders. Their investment thesis, as Bannon explains, remains strong even in times of crisis — a diverse team of operators and investors is more likely to have better outcomes than homogeneous groups when measured by revenue, exits, and overall returns.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 729. in CA
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Canada Canada Latest News, Canada Canada Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

VCs are getting tough on due diligence in the new work-from-home era - Business InsiderExclusive: VCs are toughening up their due diligence because they can't meet startup founders in person, as the pandemic imposes a work-from-home era
Source: BusinessInsider - 🏆 729. / 51 Read more »

VCs are getting tough on due diligence in the new work-from-home era - Business InsiderExclusive: VCs are toughening up their due diligence because they can't meet startup founders in person, as the pandemic imposes a work-from-home era
Source: BusinessInsider - 🏆 729. / 51 Read more »

$310 billion of the new SBA funds will go to helping small businesses - Business InsiderThe new coronavirus relief bill will include $310 billion in new funds for small businesses under the Paycheck Protection Program.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Coronavirus: Trump says Johnson 'sounded incredible' over the phone - Business InsiderDonald Trump says Boris Johnson 'sounded incredible' as the UK prime minister prepares to return to work after the coronavirus Did he use bleach or UV ? If UV, he should have turned....? And he doesn’t use that word lightly! Tremendous vocabulary.
Source: BusinessInsider - 🏆 729. / 51 Read more »

Discover takes a hit from the pandemic - Business Insider - Business InsiderDiscover posted a 3% annual increase in sales volume in Q1 2020, marking a considerable deceleration from the 7% it reported in Q1 2019. I guess they will......DISCOVER....it soon😃😂😁😀😊☺😆
Source: BusinessInsider - 🏆 729. / 51 Read more »

Global remittance volume set to plunge in 2020 - Business Insider - Business InsiderRemittance firms may struggle to cope with a sudden drop in remittance volume, but focusing on the digital channel could help them survive. CurateByo just a crc introspection for those who rely on diaspora remittances for a living. This covid19 pandemic is real. not really alarmist but to save as a warning for lean budgets in the foreseeable future
Source: BusinessInsider - 🏆 729. / 51 Read more »