Startups

Shocker: Study finds venture capital is not very diverse

The report does, however, offer some ideas on how to increase diversity in the industry.

What venture capital currently looks like. (Photo by Flickr user 401(K) 2012, used under a Creative Commons license)

The Mass Ave.-based National Venture Capital Association (NVCA) and Deloitte released a study on diversity in venture capital on Thursday which says, no surprise here, that the VC world is not terribly diverse.
“Although women comprise nearly one-half (45 percent) of the total venture capital workforce, few are in investment decision-making positions,” a release detailing the report begins. And when it comes to non-white individuals, well, they only comprise 22 percent of the total VC workforce.


“The survey results reinforce what we already know, which is that the venture industry is not representative of the overall population of the U.S. Transparency is a powerful force for change, and we now have a clear benchmark by which we can measure progress to create a more inclusive venture capital industry,” Bobby Franklin, president and CEO of NVCA, said in a statement.
So why do the study at all? Well, one element seems to be that transparency Franklin alludes to. But another is that the study was also able to suggest some practices that do encourage diversity in venture capital. According to the report, there is a strong correlation between level of diversity and VC firms that have a “human capital strategy.” Mentorship programs, for example, are helpful.
You can download a full PDF copy of the report here.
We’re being a little flippant because, well, the results of the study are so incredibly expected. That said, it is good to see an leading-industry organization take an interest. The study is a nice reminder that when it comes to innovation and investment and opportunity, there’s a strong need for more diversity at all sides of the table.

Companies: Deloitte

Before you go...

Please consider supporting Technical.ly to keep our independent journalism strong. Unlike most business-focused media outlets, we don’t have a paywall. Instead, we count on your personal and organizational support.

3 ways to support our work:
  • Contribute to the Journalism Fund. Charitable giving ensures our information remains free and accessible for residents to discover workforce programs and entrepreneurship pathways. This includes philanthropic grants and individual tax-deductible donations from readers like you.
  • Use our Preferred Partners. Our directory of vetted providers offers high-quality recommendations for services our readers need, and each referral supports our journalism.
  • Use our services. If you need entrepreneurs and tech leaders to buy your services, are seeking technologists to hire or want more professionals to know about your ecosystem, Technical.ly has the biggest and most engaged audience in the mid-Atlantic. We help companies tell their stories and answer big questions to meet and serve our community.
The journalism fund Preferred partners Our services
Engagement

Join our growing Slack community

Join 5,000 tech professionals and entrepreneurs in our community Slack today!

Trending

Dem tech policy advisor beats fellow tech pro in US House election to rep Virginia’s Data Center Alley

DC, meet your 2024 Technical.ly Awards nominees 

Cannabis gets the spotlight at a DMV tech conference

What a second Trump administration means for local startup ecosystems

Technically Media