Serial investor Tré Baker says relationships are the secret weapon for Black investors to scale and produce greater impact.
Baker is an investor in nearly 160 startups, including Groundfloor Finance and TribeVest. Reflecting on the venture capitalist space, he admits he wants to see a systemic shift in the investment landscape, particularly concerning Black venture capitalists (VCs). This desire for change also prompted his exit from Techstars Accelerator in November 2024 after nearly three years with the organization, serving as Managing Director.
“I’m no longer the managing director of Techstars Tulsa. And part of the reasons that platform is not operating at a systemic enough level, it wasn’t big enough,” he explained during an episode on the “Black Tech Green Money,” hosted by AFROTECH™ Brand Manager Will Lucus.
Baker believes Black VCs can operate more effectively, suggesting they move away from the idea of “meritocracy,” which prioritizes talent over wealth or status. In contrast, he points out that their counterparts focus not on selecting winners but developing them, emphasizing the importance of moving away from a narrow success model to a more expansive one that helps Black VCs better equip emerging entrepreneurs and develop lasting avenues to success.
“We still operate under the false assumption that meritocracy is an actual thing. Meritocracy is a fairytale,” Baker said on the podcast. “Nobody gets ahead because only the quality of their work or their intelligence or their effort. This game, more than most, is a relationship game. And doors are open because of who I know.”
He added, “So when you’re operating in an ecosystem with a more collective strategy, now I’m not saying that I don’t know if the mainstream investors are deliberately doing this because the system just works for them, but we have to actually be intentional about creating, for lack of a better term, investment mafias, where we pick winners, and we make them win using the power of our relationships, connections, government relations, [and] lobbying efforts.”
What also shouldn’t be neglected is the importance of building a personal brand, especially while expanding one’s network through social media or participating in accelerator programs. In today’s fast-paced market, becoming more visible and vocal on platforms can bring you closer to potential investors, employees, or individuals who might advocate for you in important spaces.
“If you have a very ardent and loyal community, that can also help a lot. But getting connected to as many people as possible increases your chances of success because it’s likely that somebody who you’re connected to is going to be able to help you when you need it. So if I know a million people and I can ask a million people a favor, that’s better than asking one, right? Because most likely somebody in that following is going to be able to help me,” Baker explained.
To check out the full interview, click here.
