The Equity Record, a recent diversity report conducted by Diversity VC, found that a mere 1.87 percent of 213 venture capital was allocated to diversity, equity and inclusion (DEI) investments. The survey was carried out over the period of 28 June 2022 to 20 September 2022, analysing allocation of capital with Penn State.
The criterion by which Diversity VC determined this 1.87 percent value was based upon which startups that had received venture capital funds also had leaders from diverse backgrounds. This 1.87 percent equated to $582 million in DEI investments from a total of $31.6 billion.
Diving into diversity data
Whilst still disproportionate, Diversity VC did find that some change has been made. Of the sample surveyed who gave demographic data, 34 percent were women. Furthermore, funds where 100 percent of general partners were women occurred in 7 percent of cases; the remainder had at least one female general partner, and 31 percent of general partners per venture capital were women.
"VC-backed startups were still disproportionately men (89.3%), white (71.6%), based in Silicon Valley (35.3%) and Ivy League-educated (13.7%); the data has hardly changed in two years," Diversity VC COO Sarah Millar commented in the report’s foreword.
"These findings are simply the starting point for conversation and action around how to facilitate greater diversity, equity, and inclusion in VC."
Mattel163 CEO Amy Huang recently spoke on fostering diversity in mobile esports, stating: "Every innovation starts with inclusion."
Among Diversity VC’s findings was that in non-DEI funds, approximately 23 percent had women general partners versus 40.5 percent in DEI funds. Furthermore, nonwhite general partners were present in 5.9 percent of non-DEI funds versus 25.3 percent where 100 percent DEI is enforced.
Entertainment studio and mobile game creator Muus Collective raised $5 million in a Seed Round last month to increase diversity in gaming and fashion.
The full Equity Record includes further insight into the data regarding minorities within venture capital.