Andrea Hoffman, CEO of Culture Shift Labs & Richard Kerby, Angel Investor joined #BoldBiz to discuss culture shifting weekends & how to invest in the diverse venture capital community. #BoldTV
Posted by BoldTV on Tuesday, June 26, 2018
Culture Shifting Labs advise big companies, nonprofits, government and philanthropists on diversity and inclusion in investments and marketing. According to CEO Andrea Hoffman, these organizations have to learn to allocate money to untapped diverse markets, which have incredible purchasing power. And, at the same time, the company is interested in helping diverse people access capital.
Focusing on the lack of diversity in investors and venture capitalists
Richard Kerby, who does research for Culture Shifting Labs, found that there is very low diversity among venture capitalists. Only 2 percent of venture capitalists are African-American and only 12 percent are women. And, there is even a lack of geographical diversity in that most venture capital goes to only three states: California, Massachusetts and New York.
How do people of color, ethnic minorities and women get access to capital?
Culture Shifting Labs runs Culture Shifting Weekends, which are designed to help diverse people, like people of color, get access to capital and where people of color who have capital can spread information and make deals. Hoffman referred to the weekend as a “button” that institutional investors and angel investors can press and find hundreds of diverse people gathered, including the largest convening of black venture capitalists. This is what she refers to as “democratizing the information,” but the event is not just about information, it’s also about deals. And, there were very practical and impressive outcomes from their last Culture Shifting Weekend: $17 million were invested into three people and their funds. They are holding their next Culture Shifting Weekend on Nov. 1 to 3 in New York City.
How can we change this at an earlier stage?
Educational institutions can help change this lack of diversity by teaching people what it means to invest, how to become an entrepreneur. And, especially, by having role models that are ethnically and racially diverse. Just by having venture capitalists who are black or women come forward so people know that people who look like them are venture capitalists. There are at least 125 black venture capitalist who attended last year’s weekend and even they didn’t realize how many diverse venture capitalists there were in the United States.
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