Re:SoftBank launches $100m minorities startup fund
by onion2k on Thursday June 04, 2020 @03:42AM
(#23413795)
Aren't these the real reasons why people are disadvantaged?
Not when it comes to raising VC money, no. Typically people who manage to raise a round come from good backgrounds, middle-class families and have a high level of education. There are exceptions but that's a good general heuristic for a founder who has successfully raised money. If you're from a broken home, didn't finish school, or you were abused as a child you're much less likely to be raising money from a VC fund for a litany of reasons that all need to be addressed by society as a whole.
However, even though practically all the people who pitch to VCs are well-educated, relatively wealthy, middle-class people regardless of what color they are, it's still the case that more than 3/4 of deals go to white men[1]. It's extremely hard to raise, and even harder if you're in a minority group. VCs are systemically averse of doing deals outside of their comfort zone.
For Softbank to ring fence the equivalent of 0.1% of their Vision Fund as "this money is only for minorities" that's fine. To be honest it's not really enough.
I don't look at this news as a VC company going 'positive discrimination' but more as a VC company realising that it has a problem turning down deals that could make them money, eg minority-led startups, and doing something to fix that.
Not when it comes to raising VC money, no. Typically people who manage to raise a round come from good backgrounds, middle-class families and have a high level of education. There are exceptions but that's a good general heuristic for a founder who has successfully raised money. If you're from a broken home, didn't finish school, or you were abused as a child you're much less likely to be raising money from a VC fund for a litany of reasons that all need to be addressed by society as a whole.
However, even though practically all the people who pitch to VCs are well-educated, relatively wealthy, middle-class people regardless of what color they are, it's still the case that more than 3/4 of deals go to white men[1]. It's extremely hard to raise, and even harder if you're in a minority group. VCs are systemically averse of doing deals outside of their comfort zone.
For Softbank to ring fence the equivalent of 0.1% of their Vision Fund as "this money is only for minorities" that's fine. To be honest it's not really enough.
I don't look at this news as a VC company going 'positive discrimination' but more as a VC company realising that it has a problem turning down deals that could make them money, eg minority-led startups, and doing something to fix that.
[1] https://news.crunchbase.com/news/untapped-opportunity-minori...