Re:VCs Promised to Help Black Founders – My Experience Shows...
by JangoSteve on Wednesday July 08, 2020 @08:07PM
(#23775658)
One type of bias does not preclude the other. In this case, one may even strengthen the other. The argument that VCs discriminate on wealth strengthens the argument of systemic racial and gender-based bias, given the disparities in income and wealth between races and genders. This is the indirect nature of systemic bias I was describing.
What portion of non-rich people make up the VC network? It's definitely lower than the percentage of women or black people. No one is more "underrepresented" than non-rich people.
VCs are the 1%. Their target of exclusion is the 99%. Most don't care about race or gender. They will overlook almost any attribute if they see dollar signs, race, gender, and even someone's poor background. Because their primary concern is money.
And since VCs hate poor people. And they know this about each other. Even those VCs that don't hate poor people will be more reluctant to fund poor people because they know other VCs are assholes. If other VCs will discriminate then the company may have trouble raising money and is more likely to fail. This is one of the major the systemic problem.