It’s no secret that venture capital has a problem. Despite a landslide of evidence supporting diverse teams, only 1% of venture-backed startups have a Black founder, and less than 3% of VC funds employ Black or minority professionals. If that’s not bad enough, Morgan Stanley says excluding those potential investors and entrepreneurs means the industry is leaving a trillion-dollar opportunity on the table.
While individual organizations are working to fix this, the industry needs systemic change and a greater pipeline of founders and investors from underrepresented backgrounds. The current system will not right itself; if we want different people, we have to change the system.
Let’s flashback to summer for a minute and remember the feeling of desperation following the deaths of George Floyd, Breonna Taylor, and so many more. While many felt hopeless, I felt a call to action, a need to use any resources I could gather and do something to create meaningful change. How could we turn those equality conversations into action – and make sure those actions continue once the newscycle ends? Our Operator Collective partner team – Mallun Yen, Ambrosia Vertesi, and I – agreed that one way is through education.
The power of education for change
Venture capital isn’t something you can just pick up. Even if we could break down the barriers and throw open the doors, there’s still a huge learning curve. It takes time to learn the terms, understand the process, and make the connections. Some people grew up in that world, absorbing this knowledge through osmosis, but others need a leg up.
What if we could create a curriculum to train Black executives on the fundamentals of venture investing? A program for experienced operators led by some of the industry’s most respected leaders and certified via a top institution? The idea felt larger than life, but soon we were working our connections and devoting hours every day of the week to build a framework and partnerships.
Many people stepped up to help – people who’d led successful programs of this kind before. Operator Collective LP Richelle Parham connected me to Sue Toigo, who shared invaluable advice from decades of promoting minority professionals in finance. The brilliant Freada Kapor Klein provided her expertise from decades of work as Silicon Valley’s diversity activist. And Kapor Capital’s Ulili Onovakpuri offered valuable insights from her own experience. All these wildly impressive people came together with the common goal of creating much-needed change in an industry too content with the status quo.
Announcing Black Venture Institute
Now Operator Collective is proud to partner with BLCK VC, Salesforce Ventures, and UC Berkeley Haas to launch the new Black Venture Institute, an intensive program for Black experienced operators interested in learning more about venture, including angel and venture investing. The program will teach foundational venture principles like financing, sourcing, diligence, and corporate governance. Fellows will discuss how investors evaluate opportunities, collaborate, and negotiate terms. All while learning from top industry minds, business leaders, and UC-Berkeley professors. It’s a full package of education, exposure, and connections.
There are roughly 75 Black check writers in venture capital today. Black Venture Institute will graduate 300 fellows in three years, to potentially 5x that number by 2023.
Putting this together was no small feat; many of us devoted significant amounts of time, energy, and resources to get it done. But it shows the power of what can happen when driven groups collaborate to bring about change. Through it all, it’s been uplifting to see the response and work with other organizations hell-bent on creating a more equitable industry. Special shout-outs to Jackson Cummings, Frederik Groce, Brian Hollins, Camden McCrae, and Toby Stuart for their tireless efforts.
2020 has drawn a line in the sand: We can actively push for equality, or we can keep our profoundly disappointing status quo. We proudly choose the former.
We hope you’ll join us in supporting Black Venture Institute.