Morgan Stanley Calls Out Investor Bias Against Women, Minorities
- ‘We aim to open investors’ eyes to opportunities,’ Gorman says
- Funders more likely to say women, minorities will underperform
Photographer: John Taggart/Bloomberg
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Businesses run by women and people of color receive a sliver of the funding that those run by white men do. A new report from Morgan Stanley puts a finer point on why: Investors are biased.
In a survey of more than 200 investors and lenders, researchers found that funders see fewer pitches from women and minority entrepreneurs, and when they do, they hold them to higher standards. “Everyone has preconceptions and biases and investors are no different (both known and implicit),” the study’s authors wrote. “But these seldom work for the benefit of women and people of color when trying to source funding.”