diversity in vc

diversity in vc

Image by Songquan Deng/ Shutterstock

According to PledgeLA’s annual report, the Los Angeles venture capital and tech scene is still very much an all-boys club.

From an analysis of more than 6,300 investment transactions made in 2021 the L.A. venture capital report found that the percentage of funding going to white male founders increased to 53% of the whole (that's an increase of 7% over the prior year). Meanwhile, Black founders saw a 5% decrease. The data also highlights how Black and Latino founders are the most underfunded group over the last three years. Asian founders saw a dip in funding in 2021, but still received 24% of the funding– more than double what Black or Latino founders received.

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Photo by Decerry Donato

It’s no secret that female entrepreneurs receive less funding than their male counterparts–females only secured 2% of VC funding in 2021. The reality, however, is even more pronounced for women of color.

But according to ComplYant founder Shiloh Johnson, there is a way to change this reality we are living in, you have to be undeniable. “If I focus on the business, and I build something that works and it's making money, you can't deny that green is the universal color,” Johnson said at dot.LA’s "Meeting the Moment: Why the Time is Now for Women Founders" panel.

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Photo by David Ruano

In 2021, women raised just 2 percent of venture capital in the US in 2021. Black founders raised just 1.2 percent of total VC funds last year — and will likely raise even less this year amidst the economic downturn. This is all to say that efforts from VC funds to invest in female and racially diverse founders don’t appear to be enough.

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