Anti-Bias Fund: Diversity Initiatives in the Financial Sector
March 12, 2021 | Ashley Brindamour
“Investing in women and underrepresented founders is smart investing, as they on average outperform on both time to exit and returns. In a way, it is alpha hiding in plain sight. The right thing to do and the smart thing to do. No better time than now.”
—Lea Bajc, partner at Antler
AVG’s Anti-Bias Fund is based on the thesis that it can be good for society and for your portfolio to invest in businesses led by diverse founders and/or addressing systemic bias.
While the fact remains that women and people of color are underfunded and underrepresented in the venture industry, there are also some more hopeful signs. We recently highlighted some of our co-investors who actively consider diversity as an important criterion in their investments. Below we’re spotlighting some other diversity initiatives in venture and the financial sector.
Fund Closing March 31
The Anti-Bias Fund offers investors a portfolio of ~20-30 venture investments that are led by diverse founders/teams or feature a business model addressing systemic biases. Click below to review fund materials, along with case studies on Alumni Ventures portfolio companies that demonstrate the kind of investments we might add to the Anti-Bias Fund. You can also book a call with a Senior Partner if you have questions or want to learn more.
Diversity Initiatives in the Financial Sector
- Multiple VCs have opened their door for pitches from Black founders, plus consulting and events to give back.
- Morgan Stanley and Goldman Sachs have launched accelerators for women and multicultural entrepreneurs.
- Andreessen Horowitz launched its Talent x Opportunity fund, seeding it with $2.2M in donations to back entrepreneurs “who did not have access to the fast track but who have great potential.”
- SoftBank announced a $100M Opportunity Fund “dedicated to supporting and building a community of outstanding Black, Latinx, and Native American founders.”
- Goldman Sachs reported in 2020 a more diverse analyst class: majority women, highest representation of Black talent in the Americas, highest Asian talent globally. They also stated they will only underwrite company IPOs in the US and Europe with at least one diverse board member.
- The National Venture Capital Association launched Venture Forward in 2020 to promote a more diverse and inclusive ecosystem.
- Intel Capital’s Diversity and Inclusion Investing Initiative reported a record investment of $170M in diverse teams in 2019.
- Morgan Stanley’s survey of VCs found nearly 70% said that they were more likely to back multicultural-founded ventures in 2021.
Live Webinar: AVG Women in VC Panel
Join some of Alumni Ventures’ female investment professionals on Wednesday, March 24, at 2:00 PM Eastern for a discussion about the opportunities and challenges for women in venture capital. Participants will include (from top left):
- Jasmi Shah, Principal at Purple Arch Ventures
- Laura Bordewieck Rippy, Managing Partner at Green D Ventures
- Lacey Farrell Johnson, Investing Partner at The Yard Ventures
- Catherine Lu, Managing Partner at Alumni Ventures’ Basecamp Fund
Learn More About Our Anti-Bias Fund
We’re pleased to report some positive results in fighting bias. But given the overall rate of funding and venture employment for women and people of color, much more needs to be done. We hope the Anti-Bias Fund is one more such “good news” story and invite you to explore more about the fund. If you have questions, click below to connect with us.
Interested in learning more? Click below to review fund materials.
Contact firstname.lastname@example.org for additional information. To see additional risk factors and investment considerations, visit avg-funds.com/Disclosures.