Investing in Minority & Women-Owned Businesses

Investing in Minority & Women-Owned Businesses

TEN Capital recently held a roundtable discussion with Durg Kumar & Allen Bryant with Knightsgate Ventures, Grace Belangia, Angel Investor with, Shaydi DeJesus with SoGal Ventures, Vikram Lakhwara with Green Cow Venture Capital, Daina Falk & Ola Gambari with Hungry Fan, and Camila Fainzilber & Jon Gosier with Music Juggle to discuss the importance of investing in minority & women-owned businesses, the market, and its future outlook.

Key Takeaways:

  • ‘Diversity of Perspective’ breeds a startup that has a better understanding of the pain points that they’re trying to solve, therefore creating a business that scales easily and that is more likely to outperform.
  • It’s the idea of this preconceived notion that we have a lane, and we’re supposed to stay in it. And, as a minority, if I’m not running a business focused on minority problems, I shouldn’t be running that business.
  • The reason why it’s generally viewed as ‘Impact Investing’, is because the investors look at the team and the business, but when it comes to minority business investing, they’re sometimes investing in the superficial nature of the team, and not just the business. Therefore, by putting the money to work in a minority-led business, it is inherently impact investing, which misses the point overall.
  • Minorities, people of color, females, etc., continue to face both structural barriers and implicit biases with respect to career paths.
  • A diverse number of lanes is really the best thing for a company and for a fund.
  • Diversity brings alpha to investments.
  • The thought process is that, if you’re a female in the sports industry, you’re either a broadcaster, of which there are only a handful, or you’re teaching other women about sports.
  • Less than 30% of the CEOs in the US are women, and there are more women in the US than men. As a society, that’s wrong.
  • We need to do a better job of putting away the affinity bias, not make it about age, gender, race, ethnicity, or geography, and really start evaluating talent for what it is.
  • There are so many barriers that aren’t even acknowledged that exist: family barriers, mental health barriers, unwritten things that don’t allow these businesses to progress successfully.

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