The venture capital industry has long been criticized for not funding enough diverse startups. Excuses for this include that women-led companies are only focused on beauty and wellness, that there is a lack of a proven track record, that they are too risky, or that there is a pipeline problem.
Black founders have also faced similar challenges, with reasons given that there aren’t enough of them pitching, they tap into markets only their community can relate to, or they aren’t qualified.
However, data shows that women-founded companies have higher returns than male-founded ones and that women (especially Black women) are more likely to start a business than men. Without transparency, it is difficult to assess the true disparity in funding for diverse groups.
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