Trending...
- Nano-technology alliance of Supreme Pharmatech and Professor M.R.Mozafari, a global nano technology expert
- New Website Provides Consumers with Insurance Information and Access to Local Agents
- Delray Beach Branding Agency Celebrates Women in Business on International Women's Day
A new report shows how investments in diverse companies by Black and minority-owned venture capital firms could generate outsized returns, help close the racial wealth gap and create thousands of good jobs.
NEW YORK - illiNews -- Report by Culture Shift Labs Shows How Investments in Diversity-Led Companies Are Growing
NEW YORK, NY – A new report shows how investments in diverse companies by Black and minority-owned venture capital firms could generate outsized returns, help close the racial wealth gap and create thousands of good jobs.
The research by Culture Shift Labs comes at an opportune moment as U.S. companies committed over $35 billion towards racial equity investing in response to events of 2020. But beyond being socially responsible, investments by diverse VC founders and ethnically diverse management teams in minority or women-owned companies are simply good business, the report shows.
"We think the future is bright for Black VCs and the firms they lead," said Andrea Hoffman, CEO and Founder of Culture Shift Labs. "We foresee a very beneficial expansion of the ecosystem and increased economy-wide opportunity in the Black-led VC community."
In late 2020, Culture Shift Labs undertook a three-month study of 84 Black VC firms in the country to gather baseline data on their size, character, and capacity. These firms have a total AUM (assets under management) of more than $4.3 billion. Among the study's key findings:
More on illi News
Research shows that diverse leadership teams tend to be more innovative and make better management decisions. Black-led VC firms also share a willingness to look with a less biased eye at diverse-led businesses.
Also, investing in diverse marketplaces provides better economics. A study published in the Proceedings of the National Academy of Sciences found that in racially and ethnically diverse marketplaces, pricing bubbles (exaggerated valuations) were far less unlikely to occur. The study found in diverse markets, market pricing was 58% more likely to reflect the true value of the assets. Better market pricing equals better deal prices for the investor.
"The bottom line is that for whatever reason – be it ethical or be it the pursuit of returns – it looks like billions are inching towards investing in diverse founders and their ventures," the report found. "The year 2021 could very well be a game changer for those 80 or so Black-led VCs and their diverse-led investment opportunity pipelines."
For a copy of the full report, see https://cultureshiftlabs.com/the-vc-research-report/
Culture Shift Labs is a diversity and innovation consultancy that provides services under three pillars: Advising, Strategy, and Activation. Since 2006, it has been a recognized leader in integrating social and financial returns in ways that improve businesses and society. Culture Shift Labs serves F500, Tech Companies, Investors (Private Equity, Venture Capital, Impact, Family Offices), and Non-Profits.
More on illi News
NEW YORK, NY – A new report shows how investments in diverse companies by Black and minority-owned venture capital firms could generate outsized returns, help close the racial wealth gap and create thousands of good jobs.
The research by Culture Shift Labs comes at an opportune moment as U.S. companies committed over $35 billion towards racial equity investing in response to events of 2020. But beyond being socially responsible, investments by diverse VC founders and ethnically diverse management teams in minority or women-owned companies are simply good business, the report shows.
"We think the future is bright for Black VCs and the firms they lead," said Andrea Hoffman, CEO and Founder of Culture Shift Labs. "We foresee a very beneficial expansion of the ecosystem and increased economy-wide opportunity in the Black-led VC community."
In late 2020, Culture Shift Labs undertook a three-month study of 84 Black VC firms in the country to gather baseline data on their size, character, and capacity. These firms have a total AUM (assets under management) of more than $4.3 billion. Among the study's key findings:
- Black-led VC firms seek to nearly double their AUM in 2021 – from $4.3 billion to over $8 billion.
- Just 50 new Black-led VC firms with full funding would be poised to invest in range of 1,000 to 1,250 companies in the coming years, potentially creating as many as 10,000 to 15,000 jobs.
- When these companies get acquired or listed in the public stock exchanges, the wealth they create could contribute significantly towards closing the racial wealth gap.
- There is good business to be had in backing diverse founders and ethnically diverse management teams. One pioneering firm, a Mid-Atlantic-based operation with a diverse-led investing team, found that in the first 12 months, 100% of the portfolio gains were attributable to women-led companies, and over 75% of the gains were attributable to mixed-ethnicity teams, far exceeding normal and customary returns in their target asset classes.
- Fund investors seeking to accelerate their investments in diversity may be able to do so by engaging and looking closely at LP investment or deal syndication opportunities with these +80 firms.
More on illi News
- VPC Impact Acquisition Holdings II Announces Pricing of $225 Million Initial Public Offering
- ComEd Employees Celebrate 10th Year Participating in Special Olympics Chicago's Polar Plunge
- Adare Biome™ Enters North American Distribution Through Stratum Nutrition® for LBiome™ Postbiotic
- ConvergeOne and Evolve IP Enter Strategic Hospitality Partnership
- Home2 Suites by Hilton Tucson Airport Celebrates Topping Off - Tucson's Newest Extended-Stay Hotel
Research shows that diverse leadership teams tend to be more innovative and make better management decisions. Black-led VC firms also share a willingness to look with a less biased eye at diverse-led businesses.
Also, investing in diverse marketplaces provides better economics. A study published in the Proceedings of the National Academy of Sciences found that in racially and ethnically diverse marketplaces, pricing bubbles (exaggerated valuations) were far less unlikely to occur. The study found in diverse markets, market pricing was 58% more likely to reflect the true value of the assets. Better market pricing equals better deal prices for the investor.
"The bottom line is that for whatever reason – be it ethical or be it the pursuit of returns – it looks like billions are inching towards investing in diverse founders and their ventures," the report found. "The year 2021 could very well be a game changer for those 80 or so Black-led VCs and their diverse-led investment opportunity pipelines."
For a copy of the full report, see https://cultureshiftlabs.com/the-vc-research-report/
Culture Shift Labs is a diversity and innovation consultancy that provides services under three pillars: Advising, Strategy, and Activation. Since 2006, it has been a recognized leader in integrating social and financial returns in ways that improve businesses and society. Culture Shift Labs serves F500, Tech Companies, Investors (Private Equity, Venture Capital, Impact, Family Offices), and Non-Profits.
More on illi News
- Truthset and the ANA AIMM Release First of its Kind Multicultural Online Data Benchmarks
- Naperville: Estes Court Structure Fire
- Julia Hair Tax Refund Season Flash Sale Week With Buy Now Pay Later
- The Best Virgin Hair Vendors 2021
- New workwear brand LIBAERTY for women in heavy-duty industries launches during Women's History Month
Source: Culture Shift Labs
Filed Under: Business
0 Comments
Latest on illi News
- ChartSpan Announces Partnership with Kentucky Hospital Association
- Mental Health Advocate Offers Hope to Millions with Book Detailing Trials and Triumphs on His Journey to Leading a Meaningful Life
- Naperville Fire Department Responds to Ogden Avenue Motel Structure Fire
- First Trust Launches the FT Cboe Vest Gold Strategy Target Income ETF®(IGLD)
- U.S. Remodeler Index (USRI) Signals a 10 Percent Market Surge in 2021
- Construction Technology Startup Mosaic Hires Real Estate Veteran as First CFO
- The Blood On Our Hands, Part II: Paul Kagame and Violence in the Great Lakes Region of Africa
- First look: Clark Nexsen completes engineering building at NC State University
- Will the World Step in and Save Paul Rusesabagina?
- Chicago Interior Designer Wins International Award
- New Website Provides Consumers with Insurance Information and Access to Local Agents
- MCAP Acquisition Corporation Announces Closing of $316,250,000 Initial Public Offering
- Is the "Escape Plan" the setup for Rwanda to kill Paul Rusesabagina?
- Libras Let Go Of Heavy Burdens And Go Creative - 2021 Horoscope
- 2021 Marketing Excellence Awards—Call for Entries: Honoring the Best in B2B Services and Solutions Marketing
- IRI and Boston Consulting Group Announce 2020 U.S. CPG Growth Leaders List
- edjuster Launches Fully Interactive Digital Contents Claims Portal
- Senseeker Engineering Acquires SE-IR Corporation
- Norwegian Emergency Health Services Gain Nationwide Collaboration Through Motorola Solutions' Unified Control Room Solution
- Horace Mann Puts Teachers on Track to Reach $100 Million in Public Service Loan Forgiveness