Blog

By Madison Hofert

The NVCA Diversity Pledge was released and signed by 46 venture capital firms in 2015. In 2020, five years later, the Brown University Venture Capital Inclusion Lab is following up with these firms, aiming to discover and disseminate innovations in diversity, equity and inclusion (DE&I) that the pledge has fomented in the past five years, reinvigorate the urgency of the pledge, and take the temperature of DE&I within the VC industry today.

In our NVCA Follow-Up Blog Series, we will be highlighting a portion of the actions that each VC Firm has undertaken in response to the NVCA Diversity Pledge. The complete NVCA Follow-Up Report, which will include all of the actions undertaken by each VC Firm, will be released at the conclusion  of our interviews and research. Stay tuned for additions to our Best Practices section, which will include key takeaways from our conversations in short-form. 

500 Startups

500 Startups, a global Venture Capital Firm that is headquartered in San Francisco, CA, was among the first of our conversations about the NVCA Diversity Pledge. We interviewed Clayton Bryan, a Venture Partner at 500 HQ, to learn more about 500 Startups’ response to the NVCA Diversity Pledge. This blog will give an overview of 500 Startups’ overall commitment to DE&I, how being an NVCA signatory codified this mission, and how Venture Partners like Bryan are creative in their approach to DE&I as a result of the NVCA Diversity Pledge.

Since 2010 

500 Startups began in 2010 with a mission to “uplift people and economies around the world through entrepreneurship.” Initially a venture firm that differentiated with an accelerator program, 500 Startups has now invested in over 2,400 companies across 77 countries. 

But how did they get there? It was an iterative process; gradually, 500 Startups added thematic funds for a total of 16, including funds focused on Southeast Asia, Latin America, and the Middle East, among others. “We’ve always believed that talent across gender and race exists everywhere, but the opportunity is not equally distributed. So we try to go and find talented folks around the world, regardless of [their] background,” Bryan says. 

Signing the Pledge

“it was the right thing to do… it goes with our philosophy”

Clayton Bryan, Venture Partner

The commitment to DE&I has always been in 500’s “DNA.” So, five years after their inception, 500 signed the NVCA Diversity Pledge because “it was the right thing to do… it goes with our philosophy,” and it officialized the DE&I-focused component of 500’s DNA, bringing more standard rules and awareness to the issue. 

Further, 500 has always looked for partner VC Firms that also care deeply about DE&I. In signing the NVCA Diversity Pledge, VC Firms can hold each other accountable. And those firms that are spearheading this mission are leading the way for other firms to join the fight.

A Few Actions and Outcomes

After signing the pledge, 500 Startups took action and enjoyed many positive outcomes. The majority of these will be highlighted in the report. Thus, the focus of this section is to highlight the creativity of Bryan and others in their tackling of  DE&I, especially in response to the NVCA Diversity Pledge and the Black Lives Matter movement. 

Bryan says that he has personally “opened up [his] calendar [for] office hours with Black and Brown founders. Over the last month, I’ve probably met with around 80 through my open office hours.” Not only did Bryan articulate the generative experience of connecting with the community, engaging with local entrepreneurs, and broadening his network, but he revealed that “the two investments that I’ve done in June are teams with black founders,” and “those two companies that I invested in in June actually came through the first set of those office hours.” At the time of the interview, Bryan had more office hours upcoming, and he expressed his excitement. These office hours allow investors like Bryan to form investor-entrepreneur, mentor-mentee, and community-level bonds with a diverse set of founders. Plus, they were the source of his two latest deals: a win-win. Bryan’s colleagues have also taken matters into their own hands, by seeking and “finding other investors that have shown that they have a track record of backing Black founders and building those alliances so that we can make sure that we’re having a steady flow of information coming [not only] from my network and the two, three degrees of that, but going after and building strong relationships and bonds with other investors, pre-accelerators, [and] different stakeholders that are within that community of supporting black founders.”

Bryan took further action by crafting a new investment thesis to pinpoint the issue of racial injustice in policing in the United States. In his thesis, Bryan is looking for “law enforcement 2.0,” which is essentially the evolution of security and policing. He continued, “I can’t disclose the name of the company, [but] one of the companies that I recently invested in is spot on with helping to make sure that our justice system is more equal, fair, [and] balanced.” At the intersection of Bryan’s new investment thesis and his office hours, a new investment was made, “I was very driven to do this because I think that it’s something that all of us as investors can do… we have such immense power here.” 

Stay tuned for even more about what 500 Startups has done after signing the NVCA Diversity Pledge, and the outcomes of these actions. 

Notes: Figures are approximated based on 500 Startups’ internal estimates as of June 30, 2020 and have not been independently verified. The title “Partner” is used in accordance with customary business practice in the venture capital industry and does not indicate a legal status as “partner” in a partnership.

By Madison Hofert, Undergraduate Researcher

“It’s connect, invest, and grow”

Shila Nieves Burney, Founding and Managing Partner of Zane Venture Fund

Zane Venture Fund, based in Atlanta, Georgia, is not only a venture fund, but also a vanguard for diversity in venture capital, sourcing deals sans warm-intros, promoting tactful collaboration, and equipping founders with extra-capital resources. Zane Venture Fund is one-of-a-kind, but it shouldn’t be. 

We learned more about how Zane Venture Fund is innovating for diversity in venture capital in an interview with founding and managing partner Shila Nieves Burney. In Nieves Burney’s words, “we’ve solved for just about every aspect of diversity.” Then, “it’s connect, invest, and grow.”

The Roadmap to Today

A Black Latina herself, Nieves Burney has always worked with diverse communities, specifically in education and nonprofits for over twenty years. While this seems wholly different from venture capital, Nieves Burney has invested in human capital all along. And, unlike so many other venture firms that equate capital with cash, the value in diverse human capital is integral to Zane Venture Fund.

Alongside her career in education and nonprofits, Nieves Burney always had an “entrepreneurial sort of side-hustle going on.” In 2018, she switched over to full-time entrepreneurship. Soon after, a friend approached her, looking to find investors for an African-based startup. The number- and data-loving Nieves Burney began to research, and her biggest takeaway was that diverse founders were not funded equitably.  Nieves Burney thought: “I can solve that problem.” 

First, she had to close the deal to revolutionize Ghana’s financial systems. Before the deal was finalized with their investor, Nieves Burney’s daughter, Zane, was impacted by gun violence. “She’s impacted, but she survives. But, it’s one of the most traumatic moments in our lives.” Soon after, the investor pulls out to invest in hotels instead. 

Rather than let these external forces dictate her story, Nieves Burney decided to “double down and launch a fund.” She named the fund after her daughter, Zane, to represent strength, resilience, and diversity. After a year of transnational travel, sitting “in all kinds of rooms,” learning about venture capital and investing, Zane Venture Fund launched in November 2019.

Diversity and Collaboration, Inside and Out

While Zane Venture Fund has its origins in Nieves Burney’s compelling history, the fund is truly future-thinking. In Nieves Burney’s words, the fund is “focused on diverse founders and diverse teams, those who are deliberate about considering and ensuring diversity of age, thought, race, gender, etc.” If you click to the Investors tab on their website, you’ll see that a diverse founding team will generate 30% higher returns [1], a founding team with women have a higher internal rate of return (IRR) of 112% compared to 48% and they are more likely to exit [2], and the qualitative fact that diversity generates increased innovation [3].

Zane itself is a beacon of diversity. Their team is about 75% women, 65% African American, and also diverse by age, sexual orientation, education, and lived experience. But Zane cannot solve the inequality of funding for diverse founders alone. Zane actively partners with other similarly progressive venture firms to support these entrepreneurs. Everyone benefits: more capital flows to these startups, and more VC Firms are in on the deal.

Nieves Burney and venture partner Sig Mosley knew monetary capital alone would not change the landscape. Zane Access is how Nieves Burney is sowing the seeds of a sustainably equitable venture capital environment. Nieves Burney first got the idea for Zane Access in conversations with entrepreneurs who needed access to intangible support rather than funding. Within the Zane Access tab, you will find the 12-Week Pre-Capital Program (to ensure capital readiness), the Founder Roadmap Forums & Events (for greater access to non-capital resources), Zane AccessU (to get young entrepreneurs in their pipeline), and the Access Network Membership (just like it sounds). Nieves Burney says, “all of this is intentional to make sure that diverse entrepreneurs have everything they need.”

Contextualization and Self-Consciousness Within the Industry

“If you bring diversity around the table, you can have diversity of thought”

Shila Nieves Burney, Founding and Managing Partner of Zane Venture Fund

We asked Nieves Burney what she thinks the industry needs to do for tangible change to come about. Her answer? More diversity at the partner level. “If you bring diversity around the table, you can have diversity of thought… And then you can bring in other [diverse] companies that some of these folks may miss.” Nieves Burney also emphasizes that everyone, historically underrepresented or not, needs to be actively promoting diversity, “not just diverse people, right?” In the end, as Nieves Burney summed up, “it takes all of us.”

Nieves Burney also cited an issue with a recent Bloomberg article titled “Investing in VC Funds for Diverse Founders is Getting Competitive” [4]. Nieves Burney states, “The headline sent the wrong signal to the market, in my opinion.” Her fear is that people will walk away thinking, “Oh, no, we’ve written enough checks for diversity. We’re good now. We don’t have to do it anymore.” In truth, Nieves Burney argues, “10 funds or 100 funds could be started and we still won’t catch up to the money that’s already been placed in the market of people [that] have had the advantage to take part in it.” 

We need more Zane Venture Funds.

Finally, regarding the Black Lives Matter movement following the death of Geoge Floyd, Breonna Taylor, Ahmaud Arbery and so many more, Nieves Burney implores other VC firms to not only make a statement, but to take action. Rather than going back to our corners and continuing business as usual, we need to “get back to the fight again.

By Liv Simmons, Undergraduate Researcher

“The major challenge is having an open mind, not going to the old boys’ network, and creating opportunities for more diverse founder candidates to come through the door.” 

Bianca Maxwell, Founder & CEO of Skinary

In an interview with Skinary founder Bianca Maxwell, we learned how her revolutionary app is revitalizing consumers’ skin and the telehealth and wellness industries.

Maxwell was inspired to start Skinary after personal struggles with skin health. In her words, “Skinary uses machine learning to understand skin issues. You tell us what your daily habits are, what you’re using for cleanser, what you’re eating, what your lifestyle is. You take a selfie and tell us about your skin concerns, and we’ll tell you which habits are triggering your skin issues.”

Building an Inclusive Product

From a young age, Maxwell knew she would pursue entrepreneurship. As a child, her first “venture” was a door-to-door lemonade service. Her passion grew as an undergraduate at Simmons College, a women’s university in Boston, MA. Personal experiences at Simmons augmented Maxwell’s desire to be inclusive of all gender identifications while developing Skinary. The app features an option that allows users to select pronouns.

Additionally, Maxwell states, “Whenever I had to choose an avatar for myself, I always chose a white girl with brunette hair. Being the black girl with big, curly hair, I was like this person doesn’t look like me. With our avatars, we made sure to have representation for all kinds of shades, hair tones, and hair types.”

I kept diversity top of mind in our first version of the product. It’s not something we have to add.

Bianca Maxwell

The back-end embraces the diversity of users as well. Maxwell’s AI partner, AlgoFace, does not use facial recognition, but rather “face trace.” It has the same functionality as recognition but the distinctive capability of determining 206 points on the user’s face, regardless of race, ethnicity, or gender identification.

Skinary is an entirely female- and black-owned business, as Maxwell is the sole founder. There are two women on the scientific advisory board, with the overall female-to-male-identifying advisory board ratio standing at 5:3. 

A recent study by Harvard Business Review found that corporations are most inclusive when they value the diversity of staff and customers in their founding, as opposed to when they attempt to transform homogeneous cultures after several years.^[1] Based on this research, Skinary is off to an excellent start.

The Importance of Mentorship Opportunities

While speaking with Maxwell, we learned how access to mentors empowers founders, establishes preparedness, and increases confidence during financial asks.

One of Maxwell’s mentors introduced her to an executive coach who works with women of color. This coach embraced Maxwell’s specific needs as a Black, female-identifying founder and advised how to navigate the fact that Maxwell’s “particular leadership structure may be perceived differently by different people.”

Being a Black female founder, it’s a difficult space. Having advisors and mentors who come from the same walk as me, being a woman, a woman of color, or a person of color, then we know of resources that are made specifically for us.”

Bianca Maxwell

Mentors who can wholeheartedly relate to founders’ triumphs, struggles, and overall experiences are invaluable. Thus, hiring decision-makers at venture capital firms who identify as female, LGBTQIA+, Black, and Latinx (as well as those at the intersections) is critical.

Navigating Biases in Pitch Q&A

Women, especially Black women and other women of color, learn how to navigate conversations in the entrepreneurial ecosystem differently. They are more likely to face implicit and explicit discrimination as they pursue their ventures. Maxwell asserts, “There are certain conversations that are going to be a lot harder for you to have because you are a woman. It’s an unfortunate truth, but it’s a truth that you have to deal with.”

Paul Gompers, once of the leading researchers of bias in venture capital, uncovered a distinction between the questions venture capitalists ask male and female founders. During the pitch Q&A, women are 66% more likely to be asked “prevention” questions (e.g., “How long will it take for you to break even?”), whereas men are 66% more likely to be asked “promotion” questions (e.g., “How do you plan to monetize this?”).

Inconsequential? Think again. Prevention pitches raise $2.3 million on average, while promotion pitches raise an average of $16.8 million, over seven times more.^[2] 

One effective way for female-identifying founders to confront this bias is to provide a promotion-oriented response. Thankfully, Maxwell has not faced many prevention-focused questions while raising funds. She has successfully employed a strategy that she encourages other founders to utilize.

During her pitch, Maxwell preemptively answers questions. In Q&A, if asked questions such as, “Is this a defensible business?”, she responds with a growth-oriented answer. This small change distinguishes her from 85% of founders who answer prevention-focused questions with prevention-focused responses.^[3] Maxwell believes, “They want to see that we’re thinking outside of the box. We are always going to be held to a different standard. The stats prove that.”

Nevertheless, the onus does not merely lie on founders. There is a need for venture capitalists to become conscious of these hidden biases that detrimentally frame the pitches of minority- and female-founded companies.

VCs Must Expand Sector Horizons

With the increase of female-founded and minority-founded companies in recent years, the need for venture capitalists to explore new sectors is more urgent than ever before. In a report by Morgan Stanley, 46% of venture capitalists are most likely to invest when dealing with a “familiar sector.”^[4]

The idea that ventures only benefit a specific population demographic limits funding opportunities. Maxwell says, “At first, it was hard for people [to understand the sector] because I didn’t have my pitch and positioning right. Acne is the most common but rosacea, psoriasis, aging. Those are things they probably have experience with. It’s not a female problem.”

As Maxwell states, skin health is a matter that pertains to everyone, regardless of gender identification or race and ethnicity. This realization requires a change in VCs’ perspective to no longer “write off” a particular sector as being the domain of a particular race or gender identification.

With this approach comes the acknowledgment that founders with a certain gender or racial identification are not limited to one industry. While there are many female-identifying founders in beauty and fitness, there are also female founders in biotech and software. Female founders of color have especially struggled to raise funding in non-beauty spaces. For example, between 2009-2017, only 0.06% of all venture capital funding went to Black women and .32% to Latinx women in tech.^[8] Underrepresented founders are starting incredible companies, in a wide variety of sectors, daily.

Why confine them?

The Daughter Effect

In 2019, women constituted only 9.5% of decision-makers at top VC firms. Less than 1% of investors are Black, and 2% are Latinx.^[5] It is no surprise that these founders often struggle to raise funds. Female-identifying, Black, and Latinx venture capitalists are familiar with some sectors and their fruitfulness and, thus, are often more willing to take risks on founders of these demographics.

For example, take Sara Blakely, the founder and CEO of Spanx, a company that did not have any manufacturers in its infancy. A manufacturer whom Sara Blakely attempted to collaborate with mentioned Spanx to his daughters, who promptly convinced him to take the opportunity.^[6] Like with suppliers and other business partners, there is research that a “daughter effect” exists in venture capital. The more daughters a venture partner has, the greater the inclination to hire (and possibly, invest in) women.^[7]

But creating an inclusive industry need not be reliant on mere chance.

Keys Actions to Diversify Entrepreneurship

Venture capitalists’ education on implicit bias, inclusivity, and emerging sectors is an increasingly necessary action to resolve the current disparities in entrepreneurship. Additional measures that Maxwell suggests are developing accelerators and programmatic environments for historically underrepresented founders (besides the United States’ best known). Access to new networks and resources may enhance startups’ long-term growth, at scale.

When asked what most inhibits this progress, Maxwell explains, “The major challenge is having an open mind, not going to the old boys’ network, and creating opportunities for more diverse founder candidates to come through the door.” 

With indefatigable founders like Maxwell paving the way, we are closer to opening those doors.

Skinary launches on the App Store during the summer of 2020. Support Bianca by pre-ordering it for free, here.

^[1] Gompers, Paul, and Silpa Kovvali. “Finally, Evidence That Diversity Improves Financial Performance.” Harvard Business Review, Harvard Business School Publishing, 9 July 2018, hbr.org/2018/07/the-other-diversity-dividend.

^[2] Kanze, Dana, et al. “Male and Female Entrepreneurs Get Asked Different Questions by VCs – and It Affects How Much Funding They Get.” Harvard Business Review, 20 Sept. 2017, hbr.org/2017/06/male-and-female-entrepreneurs-get-asked-different-questions-by-vcs-and-it-affects-how-much-funding-they-get.

^[3] Kanze, Dana, et al. “Male and Female Entrepreneurs Get Asked Different Questions by VCs – and It Affects How Much Funding They Get.” Harvard Business Review, 20 Sept. 2017, hbr.org/2017/06/male-and-female-entrepreneurs-get-asked-different-questions-by-vcs-and-it-affects-how-much-funding-they-get.

^[4] “The Trillion-Dollar Blind Spot.” Morgan Stanley, Morgan Stanley, 11 Dec. 2018, www.morganstanley.com/ideas/trillion-dollar-blind-spot-infographic/.

^[7]  Gompers, Paul, and Silpa Kovvali. “Finally, Evidence That Diversity Improves Financial Performance.” Harvard Business Review, Harvard Business School Publishing, 9 July 2018, hbr.org/2018/07/the-other-diversity-dividend.

^[5] Gompers, Paul, and Silpa Kovvali. “Finally, Evidence That Diversity Improves Financial Performance.” Harvard Business Review, 9 July 2018, hbr.org/2018/07/the-other-diversity-dividend.

^[6] “How A Pitch In A Neiman Marcus Ladies Room Changed Sara Blakely’s Life.” NPR, NPR, 12 Sept. 2016, www.npr.org/transcripts/493312213?storyId=493312213%3FstoryId.

^[8] “ProjectDiane.” Digitalundivided, Digitalundivided, 2018, projectdiane.digitalundivided.com/.

By Madison Hofert, undergraduate researcher

In an interview with Peter Cohen, General Counsel member of the of Partnership Fund for New York City, we caught a glimpse of New York City in the future: new jobs in the Brooklyn Navy Yard, immigrant women who can bake a mean loaf of bread, and inmates with access to education—all made possible by Partnership.

What often coincides with the success of the most innovative, impactful start-ups is a double-bottom line fund that cares about civic returns just as much as financial returns. That is where Partnership begins. With a precise focus on the five boroughs of New York City, Partnership’s “current areas of focus are both on emerging growth sectors of the economy, such as fintech, life sciences and advanced manufacturing,” Cohen says, continuing that they also focus on “investments that promote opportunities for individuals in underserved communities of New York City. That’s our mandate. So we’re double bottom line.” Partnership sustains itself by investing in these New York City start-ups, getting money back, and then reinvesting that money into other start-ups. Thus, the success of Partnership depends on the success of its funded companies and vice-versa, generating uniquely equitable relations between a start-up and a VC firm.

When we got Cohen talking about the companies Partnership invests in, things got really interesting. Cohen revealed that Partnership is “looking at a company… which is providing … tablets to the inmate population as a way to provide an educational opportunity for them.” Partnership also made a loan to the Manhattan City Bike Share program to expand these bikes into underserved communities, creating alternate opportunities for transportation and general mobility in these areas. Continuing, Cohen tells us, “[Partnership] made a loan to an organization called Hot Bread Kitchen, which is [a] phenomenal organization where they’re… teaching immigrant women to get them the baking skill set, which will allow them to go off to the top restaurants, including some of the top restaurant group and get on well paying jobs there.” Cohen couldn’t stop there; Partnership’s portfolio was metaphorically bursting at the seams as Cohen continued, “Also, here’s another one we’ve made a loan to: New Lab, which is an advanced manufacturing facility… located in the Brooklyn Navy Yard, which has been historically an underdeveloped area… It’s, you know, bringing a whole new sector to [the Brooklyn Navy Yard].”

It’s obvious that Partnership isn’t just looking for companies that seem like both a financially and socially good investment, but one that can self-perpetuate and propel into the future. These investments are all forward-looking, focused on the people rather than a product. Whether it be educating inmates, preparing them for life after prison with the opportunities of a tablet, the ensured mobility by bike of all populations across New York City, baking skills that subsequently generate new lifeways for immigrant women, or the introduction of a completely new sector to an underserved area, Partnership is investing in companies that are investing in people, in humanity. 

At the end, we asked Cohen what he thinks the major challenges facing the VC industry are regarding Diversity and Inclusion. He replied, “I don’t know where to start or where to stop. I would say just getting more… women and minorities into the position of… making investments. I’m not sure if this is the major challenge, but certainly one challenge is… broadening the base of people who are making the investment decision.” Just one look at the Partnership “Our Team” page (look here) shows that they have taken this to heart. Not only that, but Partnership is women-led. Cohen explains, “Maria Gotch is the President, Mindy Deels Kelly is a Senior Vice President and then actually our parent organization is run by a woman Kathy Wild. So it’s… front and center. And what we do. Again, it’s something that we’re cognizant of, and we look for.” 

After our conversation with Cohen, it’s clear that Partnership is paving the way for the future in the kinds of start-ups they fund, the founders that they fund, and the people employed by Partnership that make those decisions. Working from the outside in and the inside out, Partnership is a force to be reckoned with, always one step ahead.

By Madison Hofert, undergraduate researcher

In an interview with Alexis Alston, formerly with Advantage Capital, we learned how ‘old boys’ networks and investments in the start-up hot spots of Silicon Valley, Cambridge, and New York are becoming obsolete. 

Advantage Capital is spearheading the niche space of VC funding that addresses underserved geographic locations. Alston explains that the areas of focus for Advantage’s more-than-a-billion-dollars under management are the midwest and southeast, including Utah, Missouri, the Carolinas and many more states. The structure of Advantage which allows for this geographic diversity is 30 smaller funds specific to each region: the investment theses that are focused on “Missouri might be different than the ones that are focused on Maine or Florida.” These are just a small sampling of the target locations that Advantage Capital is looking to write a check of between $1-15 million for in funding. 

Their uniquely geographic focus is not the only innovation of Advantage Capital; Advantage is also a Double Bottom Line fund. The investment metrics that Advantage seeks are both financial and social returns. Alston explains, “We measure our financial returns like our peers do, but we also measure our social impact returns through a few different lenses.” She continues, “we look at job growth, if we’ve seen a drop in people on food stamps, if we can see an unemployment drop… [or] if we have any effect on local school districts.” Advantage also analyzes the racial and gender makeup of their investments, another metric of social impact and thus social returns.

We asked if diversity and inclusion (D&I) was part of Advantage’s selection criteria, and the short answer was no, with a major caveat: “historically, it has not been the focal point of the way we invest. However, we have just happened to invest, in my opinion, pretty well in women owned [and] minority owned companies.” For Alston, “pretty well” really means that in 2017, 48 out of Advantage’s 172 portfolio companies (over 25%) were 100% minority owned. This number goes way up when the criteria is expanded to partial minority ownership. Further, 22 out of these 172 companies were completely women-owned. “And it just happened,” Alston says, regarding how Advantage did not have a specific focus on D&I. And while D&I was not always at the forefront of Advantage’s selection criteria, Alston explains that “recently, we became more intentional about increasing diversity in our portfolios.” This new envelope-pushing outlook will include people who don’t identify as male, people of color, people with disabilities, and people who were formerly incarcerated. 

Advantage does not have specific programming to combat issues of gender bias, however in the data shown above, Advantage’s larger goal of “improving the general quality of life” naturally lands them in a pretty good place regarding D&I. When Alston began giving examples of the kind of investment opportunities that Advantage seeks, it became clear that “improving the general quality of life” for underserved locations is intrinsically linked with D&I. Thinking hypothetically, Alston explains, “in some communities, it means investing in a company that has a workforce that’s one hundred percent minorities. Or it may be, you know, investing in a school system that’s been historically low-income and has a high percentage of female minority underserved students.” One concrete example Alston provided was from around 2017 again: “We restarted a lumber mill… but by restarting the lumber mill we saved two school districts that almost entirely served people of color in [rural] in Arkansas.”

Throughout the entire interview, Alston emphasized that Advantage’s work “really varies from place to place.” While the variety of locations, community needs, and portfolio companies that Advantage Capital supports point to the breadth of their work, it is clear that one thing holds constant: a major positive influence on D&I in the VC space. By targeting geographically underserved locations, Advantage Capital intrinsically promotes D&I in every aspect of their funding. As Alston said, “it just happened”—when a VC firm is double bottom line and truly invested in making the world a better place, it appears that D&I naturally follows if one is willing to look for it. One way VC firms can begin to get these results are throwing away their ‘old boys’ networks (Advantage “isn’t all about network, network, network”), and opening up a portal for companies to submit information which is “read every single day.” No “warm intros” or exclusivity is required to become one of Advantage’s portfolio companies. What matters is the double bottom line. 

Of course, a common misconception is that firms believe that a focus on impact sacrifices possible returns. Well, Alston and Advantage Capital are here to tell you that “we don’t suffer because we care about impact.”