Business & Employment Law Attorney
866-693-5541 | 303-424-4286

Entrepreneurs may get boost from venture capital diversity pledge

There are at least two things necessary to become a successful entrepreneur: A good idea and money to get it off the ground. There is no shortage of good ideas among enterprising Americans, but it can be difficult for many start-ups to get access to seed money.

Venture capital firms fill this important need, but money is not spread around equally. Research shows that the venture capital industry is predominantly white and predominantly male. As such, entrepreneurs who get funding also tend to be white and male. Thankfully, the National Venture Capital Association, the industry's trade group, has pledged to make diversity a high priority.

According to an NVCA survey from 2011, 87 percent of investors were white and 89 percent were men. While most of these investors do not have a conscious bias against women or minorities, they may still unconsciously favor entrepreneurs who are white and male. Researchers who have studied the problem believe that recruiting more women and minorities to join venture capital firms will also diversify the demographics of entrepreneurs who receive funding

In early August, the NVCA participated in an event called "Demo Day" at the White House. At that event, the NVCA pledged to President Obama and the public "to advance opportunity for women and underrepresented minorities in the entrepreneurial ecosystem." Hopefully, this initiative will be embraced as an opportunity rather than as a mandate.

If you are starting your own business and need access to venture capital, you may have no idea how to find interested investors in the Denver area (or wherever you happen to live). Experienced business law attorneys can help you with many aspects of your business, including access to venture capital.

No Comments

Leave a comment
Comment Information
  1. "I used the Bryan E. Kuhn, Counselor at Law, P.C. team to help me with a case. They were always professional, upfront, and positive providing guidance while keeping me informed."
    - L.H.

  2. "Everyone at the firm was professional, responsive and courteous. Kate was exceptionally knowledgeable and responsive and she helped me to achieve the desired outcome. I would definitely recommend this firm if you are in need of superior legal assistance."
    - J.S.

  3. "Bryan and his law firm operate with great professionalism and personal touch. I appreciated the way he and his team offered transparent communication."
    - N.S.

  4. "Kate & team were very professional in helping me to get through an uncomfortable ADA situation at my workplace. This was a very good legal experience. I would recommend Bryan E. Kuhn & team to anyone who needs work related legal help."
    - D.L.

  5. "Bryan, Katie, and all the staff in this office are super fast to respond, expert in their fields, and always helpful. We have been extremely pleased with their services for our small business."
    - T.Z.

  6. "Working with Bryan was amazing. His professionalism made a very stressful and difficult challenge as positive as possible. A great lawyer"
    D.K.