The Missing Link
By: Cointinuum
Tags: BlackLivesMatter, Giving, Racial Equity, Diversity And Inclusion, VC

VC Firms neglect Black talent to the detriment of our communities

The Missing Link

I’m speaking as an African American tech founder. While Mackenzie Scott surely should be honored for her benevolence and philanthropic leadership, this list of recipients serves to underscore the point I’ve been making for so long. This is in no way intended to criticize her. It is only intended to draw awareness to issues which are still not addressed and dreams still deferred.

We have, in our society, as we have in medical practice, long attempted to correct social inequities with solutions addressing the symptoms rather than the cause of the sickness. Our attention focuses only upon that which we see on the surface. However, I can report to you through countless dispatches from far and beyond, how these attempts have had (at most) only a muted effect.

The key that appears to be missing is centralized coordinated intelligent strategic intent. An intent defined and articulated for a purpose and supported by people of influence. Sure, by all means continue to provide largess to worthy organizations. They’re quite needed and appropriate. But if you look closely at the policies and procedures and ineligibilities of their various sundry programs you will find a huge gaping hole left unfilled and unfulfilled. It seems that only programs designed to help the most needy or the most worthy are eligible for funding and even then with only the least amount possible to address the need. There’s no abundance — only scarcity. If you’re in the middle, you’re left in financial purgatory.

I’ve said it before, and I’ll say it again. We need space to fail. It is only through failing (possibly many times) that we can attain the privilege of having a fully developed Culture-Institution Knowledge Base. The only Black founders I see are ones who went to Harvard or Yale. But what about the vast majority of founders who come from everywhere else? If you don’t believe what I’m saying is true, look it up for yourself. Find out how many billions of dollars are wasted into failed companies own by White founders and startups. They have the space to fail. But in order for a Black founder to receive funding it needs to be a “sure thing”. That’s an impossible requirement for 99.99%

So, I ask, what amount of money supplied to the hungry will influence a venture capitalist to fund a Black tech entrepreneur? So, don’t kid yourself. Hopefully you’re beginning to understand that by only feeding to poor, funding social programs or even supplying small business loans, that’s not addressing the inequities of VC funding practices.

We need a fundamental shift in our thinking as it relates funding Black Tech Founders. Consider what happens when a dollar is spent in communities of color and the recipient of that dollar is a wall street funded conglomerate. That money gets transferred straight out of the community. Alternatively, consider what happens with local firms. Successful Black founders give back to their communities and the multiplier effect takes root. When VC firms neglect minority founders their actually harming our communities.

So here’s THE BIG IDEA: When you invest in Black founders you’re not just feeding the needy, you’re creating a base of financial support for that community that will continue to provide on many levels.

So, I submit following which illustrates the issue and proposed solution. https://www.cointinuum.io/diversity-initiative