2019 was a groundbreaking year for women in regards to venture capital (VC) firms as 52 women were named VC partners or general partners. This figure sets a historic achievement in an industry that struggles to incorporate women leaders. However, according to an All Raise report, only one of the 52 newly-named VC partners identifies as African American.
The All Raise report highlights the unprecedented figure (52 women) and the resulting 37 percent increase from the previous year. However, VC firms still have a long way to go in the struggle for diversity and inclusion as it relates to Black women and women of color VC partners. According to the report, Black and Latinx individuals hold the lowest percentages in venture, with 0.67 percent and 3.22 percent respectfully from 2010-2015.
The report comes at a time when VCs and other funding institutions, like Goldman Sachs, are employing new policies that will ensure the future of more women-led startups. As women continue to reach new heights and hold more leadership positions many have considered that Black women and women of color will be overlooked. TechCrunch reports that funding institutions, like Goldman Sachs, are missing the mark and setting themselves up to exclude women of color.
Not only do VCs have more work to do in the area of Black women representation, but All Raise points out that even with never-before-seen numbers of women VC partners, 65 percent of VCs still do not have at least one woman partner or general partner at their firm.
All Raise plans to take this unprecedented figure to new heights and double the number of women in VCs with decision-making responsibilities such as checking writing, sitting on authoritative boards, and having the ability to invest in the next generation of founders.
In collaboration with PitchBook, All Raise discovered that companies with women on their founding teams are more likely to exit a year faster than companies with an all-male founding team, proving that investing in a more diverse team is not a moonshot idea, but a sure investment.
Although it’s exciting to how women will continue to reach new heights in the world of VC, you can’t help but point out that diversity still remains a problem that deserves a solution as well.