From Venture Capitalist to Mentor Capitalist
Only 3% of venture capital funding in the US goes to companies founded by people of color (POC). This is despite almost 30% of the population being POC. A similar gap exists in the number of partners in venture capital firms where approximately 3% are either african american or latino. Seems to us that this is more than a mere coincidence. High impact Entrepreneurship with the support of qualified and professional venture capital investors is one of the most profound engines of economic wealth creation and innovation ever invented. It’s time to point that powerful engine of change at this gap which over time we believe will lead to more economic equality of opportunity and ultimately a more equitable distribution of wealth, power and happiness. While adding 1-2 investment professionals to existing firms can certainly help, I felt the lack of signifiant progress over the last several decades required a different and more aggressive approach.
I had several people that believed in me before I even really believed in myself that helped launch Emergence and I wanted to pay that generosity of spirit and courage forward. I have sought out talented and promising founders of emerging venture capital firms that I have invested in and have tried to help mentor and coach. These firms are founded and led by women and/or people of color which is sorely underrepresented in our industry. Bottom line, once we have firms that are founded and led by a more diverse group, they will in turn identify and support entrepreneurs and opportunities that traditional firms would overlook. I believed this approach will lead to outsized returns and begin to create a virtuous cycle of the best entrepreneurs getting access to the capital and support they need to win big. It has been a lot of fun for me support this next generation of exceptional investors and I have been incredibly impressed with their talent, drive, and professionalism. So while I still love the venture capital business, I have found a way to have even more leverage, impact and fun being a “mentor capitalist”.
Photo courtesy of Slauson & Co.
