Photo: Overwhelming Majority of Venture Capitalists are White Men, Though Minorities Rising
A recent CNN report found that the majority of venture capitalists are white men, and though attention was drawn to the topic, it is hard to figure out exactly why African-American and Latino venture capitalists in particular seem to be few and fall between, despite small advancements being made by Asians and women.
Earlier this month, Soledad O’Brien posed the question, Why aren’t minority entrepreneurs receiving venture capital financing?
Why no definitive answer were agreed upon, a recent survey from Dow Jones and the National Venture Capital Association shined some light on the facts.
In stated that 89 percent of venture capitalists are male and 87 percent are white. In 2008, another survey, which utilized different methodologies, found that 86 percent were male, with 88 percent being white. However, it is was noted that of those that had been in the industry less than five years, 77 percent were white; 17 percent Asian, and three percent with either African American or Latino. The remaining 3 percent identifying as “mixed race.”
President of the NVCA Mark Heesen stated, “Ideally, we would like to see a professional base that reflects the entrepreneurs in which we invest, one that is robust and diverse in terms of gender, ethnicity, nationality and age.”
Of the 600 surveyed, 95 percent were American, 10 percent of which immigrated to the U.S.