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00:00A REALLY APPROPRIATE PLACE TO START, I THINK, IS IN ALL OF THE CORPORATE AND OTHER PROMISES. TO SUPPORT BLACK BUSINESSES AND OTHER UNDERREPRESENTED BUSINESSES THAT HAVE COME OVER THE PAST FEW YEARS. TAKING THAT INTO ACCOUNT LET ME KNOW WHAT YOUR CURRENT SCENE OF THE STATE OF VC FUNDING FOR THESE UNDERREPRESENTED FOUNDERS. > > WE HAVE SEEN MANY BILLIONS OF DOLLARS COMMITTED TO THESE AREAS. ONE DIFFERENCE IS SOME OF THAT IS BEING COMMITTED FOR PHILANTHROPIC PURPOSES AND SOME FOR VENTURE CAPITAL. IT IS UNCLEAR WHAT PERCENTAGE WENT FOR WHAT PURPOSE AND HOW MUCH FUNDING HAS ACTUALLY REACHED LATIN AMERICAN FOUNDERS. THAT IS ONE OF THE THINGS THAT I CHALLENGE WHICH IS LET'S HEAR THE OTHER SIDE OF THE STORY APART FROM THE COMMITMENTS. > > I WILL ADD TO THAT THAT WHEN GEORGE FLOYD SPARKED THIS GLOBAL REACTION AND RECKONING AROUND HOW WE INVEST AND WHO IS BROUGHT TO THE TABLE, A LOT OF THE CORPORATIONS SAID WE JUST WANT TO DO SOMETHING. WE WANT TO COMMIT A BILLION OR 500 MILLION, BUT THERE WAS NO STRATEGY. WHERE THE COMMITMENT WAS GREAT WHAT I SAW WAS A LOT OF QUESTIONING ABOUT HOW DO WE ACTUALLY DEPLOY CAPITAL, WHAT KIND OF CAPITAL IS GOING TO WHAT MARKETS OR REGIONS. THERE WAS A SCRAMBLE, AND I WAS ON THE SIDE OF CALLS THAT SAID WHAT SHOULD WE DO NOW? WE HAVE A BILLION DOLLARS, WISHED WORK TOGETHER TO FIGURE OUT WHERE WE CAN HAVE A MULTI-PHASED APPROACH TO DEPLOY CAPITAL IN A RESPONSIBLE AND HOLISTIC WAY. THE THEME OF VC INCLUDE IS MAKING SURE THAT THERE IS AN EDUCATION COMPONENT AND THAT THERE IS INVESTMENT YOU CAN'T JUST HAVE MENTORSHIP AND EDUCATION WITHOUT INVESTMENT HAND-IN-HAND. I THINK THAT WE ARE IN THE FIRST PHASE OF SOME OF THE EMPLOYMENT OF THAT CAPITAL. IT WILL BE EXCITING TO SEE THAT NEXT PHASE OF CAPITAL OUT OF THAT LARGER POOL THAT HAS BEEN COMMITTED. RENITA: FROM YOUR PERSPECTIVE, WHAT ARE YOU SEEING? KJ: I WOULD ECHO THE SENTIMENTS TO DATE. I HOLD OPTIMISM AND SKEPTICISM AS IT RELATES TO THE PROMISES OF CORPORATIONS RELATIVE TO THE CIRCUMSTANCES. I WOULD SAY FROM THE VC PERSPECTIVE, AS A MEMBER OF THE TEAM AT FORERUNNER, OUR COMMITMENT HAS BEEN TO THE DEPLOYMENT OF CAPITAL AND PUTTING CAPITAL FINANCES, MONEY, RESOURCES INTO THE HANDS OF FOUNDERS. THAT IS WHAT IT TAKES TO MOVE THE NEEDLE BECAUSE IT IS A THIN LINE BETWEEN BEING ABLE TO PROMISE IN WHICH PROMISES ARE MADE BUT NOT ENFORCED. WHILE I LOVE THE DON'T TELL THE WHOLE STORY. CAN YOU CONTEXTUALIZE THEM? MIRIAM: ONE WAY TO THINK ABOUT IS THIS WAS A RECORD-BREAKING CYCLE FOR VENTURE CAPITAL. THE 2% IS A BIG NUMBER IN TERMS OF DOLLARS BUT IS A TINY PERCENTAGE AND A TINY PERCENT WHEN YOU THINK FOR EXAMPLE THAT WOMEN ARE MORE EDUCATED THAN MEN AT THE UNDERGRADUATE AND MASTER'S DEGREE LEVEL AND THEY REPRESENT A HUGE PART OF THE WORKFORCE. WE DON'T FUND EVEN WOMEN AND WE ARE TALKING STILL ABOUT MAJORITY WOMEN, WHITE WOMEN. FROM OUR POINT OF VIEW AT ULU VENTURES, HALF OF OUR TEAMS HAVE A WOMAN ON THE TEAM, WHICH MAKES SENSE. ABOUT A QUARTER OF OUR CEOS ARE AFRICAN-AMERICAN AND LATINO. OUR FUNDS ARE SUCCESSFUL TOP FIVE. OUR MYTHOLOGY CONTINUES TO MAKE PEOPLE AVOID INVESTMENTS THAT WOULD BE PROFITABLE. RENITA: LET US KNOW WHAT YOU ARE THINKING. BAHIYAH: I THINK THAT IS THE GROUND LEVEL NUMBERS AND CORRELATION. WHEN YOU START TO THINK ABOUT UP THE FINAL, YOU LOOK AT THE FUND LEVEL AND ASSET MANAGER LAYER AND YOU SEE WHAT IS MANAGED IN THE U.S. ALONE IS MANAGED BY PEOPLE OF COLOR AND WOMEN COMBINED. IT TRACKS TO THOSE NUMBERS. 1.2% OF INVESTMENTS AT THE FOUNDER LEVEL IS IN THAT 1% TO 2% OF ASSET MANAGERS THAT ARE REPRESENTED BOTH WOMEN AND PEOPLE OF COLOR. AGAIN, BACK TO THE HOLISTIC APPROACH, IT HAS TO BE ON THE GROUND AND IN TERMS OF THE INVESTMENT AND AT THE ASSET MANAGER LEVEL. THAT IS WHERE WE FOCUS, MAKING SURE THAT INCLUSION IS INFUSED AT THE ASSET MANAGER LEVEL AROUND VENTURE CAPITAL AND ESG MAKING SURE THAT ENVIRONMENTAL AND SOCIAL GOVERNANCE IS EMBEDDED AT THE FUND LEVEL LEVELS AND FOUNDER LEVELS. IT IS IMPORTANT TO UNDERSTAND THOSE LEVELS AT THE GROUND LEVEL AND WHAT IS ACTUALLY CAUSING A LOT OF THAT CORRELATION. RENITA: ABSOLUTELY. KJ, I WANT TO ASK YOU ANOTHER QUESTION. WE POLLED THE TWITTERVERSE AHEAD OF THIS AND WE WANTED TO ASK, WHAT WAS THE BIGGEST CHALLENGE FACING UNDERREPRESENTED FOUNDERS? I WILL LET YOU KNOW THE RESULTS AND YOU LET ME KNOW IF THEY REALLY DO SEEM THIS WAY FROM YOUR CORNER OF THE WORLD. UNCONSCIOUS BIAS GOT 35%, LACK OF ACCESS TO CAPITAL WAS 50.5%. I ALWAYS HEAR THAT AS THE REASON. SEXISM AND AGEISM CAME IN AT 14.7%. DOES THAT SOUND LIKE WHAT YOU ARE SEEING CURRENTLY? IF NOT, WHAT WOULD YOU SEE IS THE BIGGEST CHALLENGE FACING UNDERREPRESENTED FOUNDERS? KJ: I THINK FOR THE MOST PART THAT TRACKS. VC HISTORICALLY HAS BEEN AN ECOSYSTEM IN WHICH PATTERN RECOGNITION IS SOMETHING THAT IS CELEBRATED. SUCCESS THAT TRANSLATES IN ONE ARENA IS DUPLICATED FOR SUCCESS IN OTHERS. IF YOU HAVE A HISTORICAL BENCH OF FOUNDERS WHO LOOK A CERTAIN WAY COMING FROM A VERY SPECIFIC TYPE OF BACKGROUND, IT GENERATES SOME TYPE OF OUTCOME FOR OTHER FIRMS, YOU WILL SAY THAT IS SOMETHING THAT WE SHOULD TRACK AND FOLLOW AND ULTIMATELY MIRROR. WHAT THAT DOES IS INSTALL THIS LEVEL OF BIAS THAT DOESN'T FAVOR UNDERSERVED OR UNDERREPRESENTED COMMUNITIES IN OBVIOUS WAYS. UNCONSCIOUS BIAS OR BIAS IS SOMETHING THAT FEEL SIGNIFICANT IN THAT BENCHMARK SETTING IS NOT A SURPRISE TO ME. THE FACT THAT ACCESS TO CAPITAL IS ALSO AN ISSUE IS ALSO NOT A SURPRISE BECAUSE OF THE HURDLES ASSOCIATED WITH BEING ABLE TO BE IN THE ROOM, BEING ABLE TO ACCESS THE FUNDS THAT ARE GIVING CAPITAL IN MEANINGFUL WAYS HAS BEEN A CHALLENGE FOR VARIOUS COMMUNITIES. THERE IS PROGRESS BEING MADE SLOWLY, SLOWLY BUT HOPEFULLY SURELY AS A WAY TO COURSE CORRECT AGAINST THAT. IT IS IMPORTANT TO RECOGNIZE THAT AS AN ISSUE, A SPEED BUMP THAT DESERVES SPECIFIC ATTENTION. RENITA: GETTING MORE GRANULAR, YOU TALKED ABOUT BEING IN THE ROOM. WHEN I SPEAK TO FOUNDERS WHAT I HEAR IS HOW IMPORTANT THE RELATIONSHIPS ARE AND HOW MAKING RELATIONSHIPS WITH THE RIGHT FOUNDERS AND FUND MANAGERS IS IMPORTANT. WHAT CAN YOU ADD ABOUT THAT? BAHIYAH: WE TALKED ABOUT PATTERN MATCHING. THE ASSET MANAGER LEVEL IS IMPORTANT. WHEN YOU LOOK AT THE TOTAL ADDRESSABLE MARKET, AT THESE OPPORTUNITIES, WE KNOW DIVERSITY OUTPERFORMS THE MARKET BECAUSE OF DIVERSITY OF THOUGHT, BACKGROUND, COLOR. NO ONE IS A MONOLITH. NO ORGANIZATION OR ETHNICITY IS A MONOLITH. WE ARE LOOKING AT THAT INCLUSION TO MAKE THEIR DECISIONS ON INVESTMENTS. WE ARE LOOKING AT 100 MILLION OR SO BLACK AND LATINX OR HISPANIC POPULATIONS IN THE U.S., IF THEY ARE NOT FOLKS WHO UNDERSTAND THOSE MARKETS, MARKET OPPORTUNITIES, IT IS A MASSIVE MARKET OPPORTUNITY, WE ARE MISSING ON ELSA. WE TALK ABOUT FIDUCIARY RESPONSIBILITY AND TRUST AND TRUSTING PEOPLE THAT YOU INVEST WITH ETC.. IF WE ARE NOT OPENING THAT LANDS AND THAT INVESTMENT ON THE EDUCATION AND INVESTMENT SIDE, ON THE ASSET MANAGEMENT SIDE, THEN WE ARE MISSING OUT ON THOSE NEW MARKET OPPORTUNITIES. I THINK THAT IS IMPORTANT, PARTICULARLY WHERE WE ARE IN THIS INNOVATION AND TECHNOLOGICALLY-DRIVEN ECONOMY WE ARE IN. RENITA: YOU HAVE ALL SPOKEN ABOUT WHAT A UNIQUE MARKET OPPORTUNITY THIS IS. TO THE PEOPLE IN THE ROOM WHO MAY BE CONSIDERING INVESTING IN THIS MARKET OPPORTUNITY, WHAT WOULD YOU TELL THEM IS THE MOST IMPORTANT THING TO KEEP IN MIND WHEN THEY TAKE ADVANTAGE OF THIS MARKET OPPORTUNITY? MIRIAM: ONE OF THE THINGS THAT WE SHOULD REALIZE IS THAT THE MAJORITY OF AMERICANS ARE NOW PEOPLE OF COLOR, AND THEY ARE LATINO, THEY ARE AFRICAN-AMERICAN, THEY ARE IMMIGRANTS OR CHILDREN OF IMMIGRANTS. A QUARTER OF THE GEN Z POPULATION HAS SOME LATINO DESCENDANTS HE. -- DESCENDANTSY. WE NEED TO UNDERSTAND IF WE ARE GOING TO REACH THESE CUSTOMERS WE NEED TO SPEAK THEIR LANGUAGES AND KNOW THEIR CULTURES. WHEN I WAS AT GOOGLE, FOR EXAMPLE, ONE OF THE WAYS IN WHICH WE WERE SUCCESSFUL IS THAT WHEN YOU WERE HIRED YOU WERE ASKED WHAT LANGUAGES DO YOU SPEAK, READ, AND WRITE BECAUSE WE WANT TO BE LOCALIZED IN THE LANGUAGE OF EVERY SITE WE HAVE, AND WE WANT TO REACH THE CONSUMERS IN A WAY THAT FEELS COMFORTABLE TO THEM, EVEN TO THE LEVEL WHERE AS AN ATTORNEY I WAS HELPING THEM LOCALIZE GOOGLE.PR FOR PUERTO RICO, WHERE MY FAMILY IS FROM, BECAUSE SPANISH IS NOT THE SAME EVERYWHERE THEY SPEAK THE LANGUAGE. IF YOU WANT TO SUCCEED IN TERMS OF REACHING CONSUMERS AND THE AMERICAN WORKER, YOU REALLY HAVE TO UNDERSTAND WHO THEY ARE AND MAKE A COMFORTABLE ENVIRONMENT FOR THEM TO BE PRODUCTIVE FOR YOU AS AN EMPLOYEE AND CUSTOMER. RENITA: LET'S GO DOWN THE LINE TO HOW EACH OF YOUR ORGANIZATIONS ARE DOUBLING DOWN ON THOSE KINDS OF EFFORTS. WE STOPPED WITH YOU, SO LET'S START WITH YOU. MIRIAM: AND TERMS FOR US, ONE OF THE THINGS THAT WE ARE REALLY FOCUSED ON IS ACTUALLY DEPLOYING CAPITAL INTO DIVERSE COMMUNITIES. AS I MENTIONED, ABOUT HALF OF OUR TEAMS HAVE A WOMAN ON THE TEAM. FRANKLY, OUR WOMEN-LED COMPANIES ARE OUTPERFORMING ALL OTHER COMPANIES IN OUR PORTFOLIO, INCLUDING WHITE MALES. WOMEN CAN BE PEOPLE OF COLOR AS WELL AS WOMEN, AND I THINK THAT OUR DIVERSE TEAMS ARE ALSO MUCH GREATLY OUTPERFORMING EVEN OUR TRADITIONAL TEAMS. THAT IS NOT TO SAY THAT OUR TRADITIONAL TEAMS ARE NOT SUCCESSFUL, BUT FOR A VARIETY OF REASONS THEY MAY ABLE TO ACCESS CAPITAL MORE EASILY. THEY MAY BE ABLE TO RAISE AT HIGHER VALUATIONS. SO, THE RETURN ON THOSE INVESTMENTS WILL BE LOWER. THE KAUFFMAN FELLOWS RESEARCH CENTER FOR EXAMPLE INDICATES HAVING DIVERSE FOUNDERS INCREASES RETURNS BY 30%, AND IF YOU ADD DIVERSITY ONTO THE C-SUITE THAT WILL INCREASE RETURNS BY 60%. WE ALSO TRY TO EDUCATE OUR FOUNDERS ON THE VALUE OF DIVERSITY FROM AN ECONOMIC RETURNS PERSPECTIVE. RENITA: VERY GOOD. LET US KNOW WHAT YOUR SHOP IS DOING. BAHIYAH: IT IS ACTUALLY A HOLISTIC 3-PRONG STRATEGY TO MAKE SURE THAT NEW MAJORITY ASSET MANAGERS AND FOUNDERS ARE GROWING AT SCALE FOR THE NEXT 10 YEARS. OUR GOAL IS TO MAKE SURE THAT AT LEAST 100 EMERGING MANAGERS ARE GROWING THROUGH THE LIFECYCLE OF THEIR FIRMS. FROM A FUND 1, 2, 3 AND BEYOND. WE BELIEVE THAT WILL HAVE A MASSIVE MARKET REACH TO DIVERSE AND WOMEN-LED FOUNDERS AS WELL. WE HAVE OUR TRAINING AND EDUCATION PROGRAM THAT IS CHURNING OUT 10 TO 15 FELLOWS WHO ARE RAISING CAPITAL AS WE SPEAK EVERY YEAR. WE JUST GRADUATED THE FIRST 10. WE ARE ADVISING LPS AND ASSET ALLOCATORS ON THEIR STRATEGIES TO DOUBLE DOWN ON FIRMS LIKE CLIMATE SOLUTION-FOCUSED FIRMS AND INVESTING THROUGH INCLUDED VENTURES IN THE BEST OF THE BEST IN OUR PIPELINE OF OVER 500 MANAGERS. WE HAVE A LOT TO DO OVER THE NEXT 10 YEARS. RENITA: IT SOUNDS LIKE YOU HAVE A LOT TO DO OVER THE NEXT FEW MONTHS. I'M SURE THAT YOU DO AS WELL, KJ . KJ: CERTAINLY TRYING TO STAY BUSY. JUST TO OFFER A QUICK BIT OF CONTEXT, IT IS A VC FUND THAT IS LOOKING TO CHAMPION FOUNDERS WORKING IN FREE SCRIPT CULTURE, REIMAGINING EXPERIENCES FOR THE CONTEMPORARY, NOVEL, DIGITAL AGE CONSUMER. THE EFFORTS THAT WE'VE TAKEN AS IT RELATES TO DIVERSITY IS WHAT HAS BEEN SPOKEN ABOUT TO THIS POINT WHERE IT IS AND KNOWLEDGE MEANT THAT THE FABRIC -- ACKNOWLEDGMENT THAT THE FABRIC OF AMERICA LOOKS DIFFERENT THAN IT HAS HISTORICALLY THAT THE CHILDREN OF AMERICA WILL KNOW NO ETHNIC MAJORITY, FOR EXAMPLE. WHEN YOU TAKE THAT INTO CONTEXT AND WORK TO EFFECTIVELY TRANSLATE THE NOTION OF IDENTITY, WHO YOU ARE, WHAT YOU DO, HOW YOU FIT WITHIN A BROADER CONTEXT, TRANSLATE THAT NOTION INTO NEEDS. THOSE NEEDS SURVEYS DIFFERENT OPPORTUNITIES AS IT RELATES TO BUSINESSES FROM AN EMPLOYEE AND CUSTOMER PERSPECTIVE. WHAT WE TRIED TO LEAN INTO HIS UNDERSTANDING THOSE NEEDS, IDENTIFY THOSE, AND MATCH OF THOSE WITH OPPORTUNITIES THAT SATISFY THOSE NEEDS IN WAYS THAT FEEL EMPOWERING OR ENRICHING. SO, WE BACK FOUNDERS THAT ARE LOOKING TO CHAMPION THE NOTION OF IDEAL. EXPECTATIONS AS IT RELATES TO ONE'S IDENTITY AND THAT PEOPLE NEED TO SHOW UP IN CONTEXT OF THAT HAS ELEVATED TO A MEANINGFUL DEGREE AND THAT CREATES ALPHA, OPPORTUNITY ACROSS A HOST OF DIMENSIONS. THAT IS WHAT WE HAS A FIRM TRY TO LEAN INTO. RENITA: THAT IS A UNIQUE PERSPECTIVE YOU DON'T ALWAYS HEAR ABOUT. NEEDS-BASED. CURVEBALL, CAN YOU TELL US WHAT IS THE MOST SURPRISING THING THAT YOU MIGHT HAVE LEARNED IN COLLECTING THESE? KJ: OUR FIRM RECENTLY RAN A SURVEY IN AN ATTEMPT TO UNDERSTAND THE CORRELATION OR RELATIONSHIP THAT EXISTS BETWEEN IDENTITY, AFFINITY, AND THE WAY THAT THAT SHOWS UP IN CONSUMER-BASED EXPERIENCES. THERE WERE TWO INTERESTING FINDINGS THAT I CAN REMARK ON. THE FIRST HAD TO DO WITH THE FACT THAT AS YOU CONSIDER THE MOSAIC THAT CONTRIBUTES TO SOMEONE'S IDENTITY, WHETHER IT IS ETHNICITY, INTERESTS, HOBBIES. WHAT WE FOUND AND NOTED IS THAT THOSE PIECES THAT FELT UNDERSERVED IN ANY CAPACITY WHERE THE ONES THAT PEOPLE HAD THE STRONGEST EITHER TO. IT TETHERED THEM TO THEIR EXPERIENCE AND IT SPONSORED A BRIDGE THAT RELATED THEM TO OTHERS. IN THAT CONTEXT WE ALSO FOUND THAT THERE ARE CERTAIN CATEGORIES OF CONSUMER-BASED EXPERIENCES THAT TETHER AND ANCHOR TO THAT UNDERSERVED PIECE SHOWN MOST BRIGHTLY. IT WAS FAMILY CARE, PERSONAL CARE, AND HEALTH, FOR WHICH YOUR IDENTITY KIND OF MATTERS THE MOST. WHAT WAS INTERESTING AROUND THESE FINDINGS IS ONE, THAT THEY EXIST. SOME OF THESE PIECES MAY SOUND OBVIOUS, BUT TO PUT DATA BEHIND IT LIKE A SIGNIFICANT STEP TO ARTICULATE WHAT OUR VALUE PROPOSITION WAS GOING TO BE AND WHAT TYPES OF OPPORTUNITIES MADE THE MOST SENSE IN DELIVERING VALUE FOR OUR CONSUMERS. SO, WHEN YOU COMBINE THOSE YOU SERVE INTERESTING OPPORTUNITIES. ONE OF WHICH WAS AN INVESTMENT THAT WE MADE LAST YEAR BY THE NAME OF ALCHEMY, WHICH IS EFFECTIVELY A HEALTH CARE INSTITUTION OR PLATFORM FOR PEOPLE OF COLOR. THE IDEA WAS THAT BEING ABLE TO DELIVER CULTURALLY COMPETENT CARE WAS WHAT WAS NEEDED IN ORDER TO COMBAT THE INSTITUTIONAL ISSUES OR DISPARITIES THAT EXIST ACROSS HEALTH SYSTEMS WITH AN IDEA OF STARTING ON MENTAL HEALTH IS ONE OF THE MORE PRESSING MEANS FACING THE BLACK COMMUNITY. IT IS ONLY WITH THAT PERSPECTIVE THAT YOU CAN IDENTIFY THOSE OPPORTUNITIES THAT EXIST AND DEVELOP THE CONNECTION TO MAKE THOSE, THAT THOSE ORGANIZATIONS AND COMPANIES AND WHAT THEY STAND FOR CAN BE DURABLE AND LONG-LASTING. RENITA: THANK YOU FOR THOSE EXAMPLES TOO. I THINK THAT THEY HELP PEOPLE UNDERSTAND EVEN MORE WHY IT IS IMPORTANT TO INCLUDE IDENTITY IN THE CALCULUS. WE HAVE THE IDENTITY OF CONSUMERS, AND THEN WE HAVE IDENTITY OF THE AMERICAN WORKER, RIGHT? LET'S TALK ABOUT THAT MIRIAM. HOW HAS THE IDENTITY OF THE AMERICAN WORKER CHANGED AND FIT INTO THIS CONVERSATION WE ARE HAVING TODAY? MIRIAM: ONE THING WE HAVE SEEN IS THAT THE U.S. POPULATION HAS CHANGED DEMOGRAPHICALLY SO INTENSELY OVER THE PAST 50 YEARS, AND THAT VENTURE CAPITAL REALLY HASN'T KEPT PACE WITH THAT WHERE IT IS LIKE 85% WHITE MALE AND WHITE AND ASIAN MALE FOR THE MOST PART AND VERY FEW PEOPLE OF COLOR IN THE CAN VERY FEWRE -- IN THERE AND VERY FEW WOMEN. THEY ARE TRYING TO SERVE MARKETS THAT THEY DON'T REPRESENT AND MAY NOT UNDERSTAND OR EVEN APPRECIATE THE SIZE OF. ONE THING WE KNOW IS THAT THE MILLENNIAL GENERATION AND GEN Z GENERATION ARE THE MOST DIVERSE GENERATION IN AMERICAN HISTORY, AND THAT THEY HAVE MUCH BROADER RANGE OF SENSE OF IDENTITY WHEN IT COMES TO THINGS LIKE GENDER, THEIR CULTURAL BACKGROUNDS, AND THAT THEY ARE MUCH MORE ACCEPTING AND WELCOMING OF THESE THINGS. WE ARE JUST NOT RESPONDING TO WHO IS COMING TO WORK AND WHO IS ACTUALLY BUYING OUR PRODUCTS. RENITA: SOMETHING ELSE TO THINK ABOUT. YOU HEARD HOW EACH INDIVIDUAL ORGANIZATION IS HELPING. LET'S TALK MORE SOLUTIONS. BAHIYAH, WHAT KIND OF INNOVATION IS HAPPENING IN THE VENTURE CAPITAL PIPELINE WHEN IT COMES TO ENSURING THAT VC FUNDS GO TO DIVERSE FOUNDERS? BAHIYAH: AGAIN, OUR NICHE IS WOMEN-LED AND NEW MAJORITY-LEAD MANAGERS. WHAT WE ARE SEEING EXTERNALLY AS WE WERE TALKING ABOUT THIS AT THE BEGINNING, A GROWING UNDERSTANDING OF THE NEED TO INVEST AT THE MANAGER LEVEL AND UNDERSTANDING THAT THAT WILL TRICKLE DOWN TO DIVERSE FOUNDERS, WHETHER SPECIFICALLY BLACK, LATINX. A LOT OF CONVERSATIONS GET INTO OUR YOU WILL BLACK MANAGER JUST INVESTING IN BLACK MANAGERS? FROM THE 30,000 FOOT PERSPECTIVE IT DOESN'T REALLY MATTER BECAUSE ON PAR NO MATTER WHAT THE DIVERSITY OF THE FIRM THEY WILL INVEST IN MORE DIVERSE FOUNDERS. I WILL SAY THAT ALLOCATORS ARE STARTING TO, AND LARGE CORPORATIONS ARE STARTING TO INVEST MORE IN THE MANAGERS. THAT TO ME IS THE MOST IMPORTANT THING, AND YOU SCALE INVESTMENT AT THE FOUNDER LEVEL. RENITA: THANK YOU FOR EXPLAINING. ONE THING THAT I WANTED TO ASK YOU ABOUT IS THE TYPES OF BUSINESSES. DO YOU SEE FUNDS FLOWING MORE TO EARLIER STAGE SMALL BUSINESSES? AND WHY? BAHIYAH: THAT ACTUALLY DRILLS DOWN TO THE CORRELATION TO THE PIPELINE. BECAUSE THERE HAS BEEN SUCH A JUGGERNAUT IN INVESTING INTO DIVERSE FOUNDERS OVER THE LAST FIVE TO 10 YEARS, NOW THAT THERE IS AN INVESTMENT FLOOD -- ACTUALLY, A TRICKLE. LET'S BE CLEAR, IT IS NOT A FLOOD. A TRICKLE TO THE MANAGERS THAT ARE READY TO DEPLOY CAPITAL, A LOT OF THE DIVERSE FOUNDERS ARE STILL EARLY STAGE. THEY ARE PRE-SEED, LATE SEED, EVEN SERIES A. IT IS THIN AIR. THE REASON WHY THERE IS A LITTLE BIT OF A JUGGERNAUT IN THOSE INVESTMENTS IS THAT MOST MORE TRADITIONAL AND MORE TRADITIONAL FIRMS WANT TO INVEST IN MORE ROBUST BUSINESSES, BUT THE PIPELINE HAS BEEN MARGINALIZED. THIS IS THE FIRST WAVE OF INVESTMENT INTO THE MANAGERS WHO ARE INVESTING IN THE EARLY STAGE OF VC IN THE NEXT 10 YEARS, WHICH IS WHY THAT SCALE IS SO IMPORTANT, THAT LATER STAGE COMPANIES MATURE AND EXIT. MIRIAM: MAY I ADD SOMETHING? RENITA: SURE, GO AHEAD. MIRIAM: PEOPLE DON'T REALIZE HOW LITTLE DO NUMBERS REALLY ARE. WHEN WE LOOKED AT THE DATA BETWEEN 2015 AND 2020 WE REALIZE THAT IN THE UNITED STATES THERE HAD BEEN FEWER THAN 100 INVESTMENTS IN COMPANIES THAT WERE LED BY AFRICAN-AMERICAN AND TINO FOUNDERS -- AND LATINO FOUNDERS. THAT IS IN OUR ENTIRE NATION. NOW THAT THERE IS A FLOOD THAT HAS INCREASED TO 200. WHEN WE THINK ABOUT WOMEN WHO HAVE -- WOMEN OF COLOR WHO HAVE RAISED CAPITAL, IT IS PROBABLY UNDER 100 IN THE WHOLE COUNTRY. WE ARE IN THE EARLY DAYS OF ACCESS TO CAPITAL TO DIVERSE PEOPLE IN THIS NATION. VENTURE-CAPITAL IS ONE WAY THAT WE WANT TO GET CAPITAL IN DIFFERENT HANDS. I WANT TO AMPLIFY THE WORK OF OTHER FOLKS WHO ARE LOOKING AT REVENUE-BASED VENTURE CAPITAL AND NEW APPROACHES TO GET CAPITAL IN THE HANDS OF DIVERSE PEOPLE, BECAUSE THE SMALL BUSINESSES OF THIS COUNTRY ARE REALLY A HUGE POTENTIAL FORCE OF WELL-BEING FOR EVERYONE. STANFORD LATINO ENTREPRENEURSHIP INITIATIVE FOR EXAMPLE SAYS THAT IF WE COULD RAISE LATINO SMALL BUSINESS TO JUST THE SIZE OF THE AVERAGE WHITE'S NOTICE THAT WOULD BE A $2 TRILLION IMPACT ON THE U.S. ECONOMY. WE NEED TO GET CAPITAL IN DIFFERENT FORMS TO DIFFERENT ENTREPRENEURS. RENITA: THAT MAKES ME THINK OF BACKSTAGE CAPITAL. IT IS MORE OF A CROWDFUNDING APPROACH THAT WAY. I WOULD SUGGEST YOU GUYS LOOK AROUND AT WHAT OTHER WAYS PEOPLE ARE GETTING CAPITAL. AS YOU SAY, THESE THINGS ARE GOING TO RISE TO THE TOP. WE ARE ACTUALLY GOING TO COME TO A CLOSE, BUT NOT BEFORE WE GET A CALL TO ACTION. WE HAVE TO END ON A CALL TO ACTION BECAUSE ALL OF YOU CAME HERE FOR THAT, AFTER ALL. KJ LET'S START WITH YOU. WHAT CAN THE EXECUTIVES HERE WHO ARE WATCHING ONLINE DO TO HELP FURTHER THESE EFFORTS? KJ: IT STARTS WITH INTENTIONALITY, WHICH IS NOT SOMETHING TO BE IGNORED OR DIMINISHED. I THINK INTENTIONALITY IS EXTREMELY IMPORTANT AND IT CREATES A DYNAMIC IN WHICH YOU WORK BACKWARDS. START WITH WHERE YOUR TENSIONS -- YOUR INTENTIONS ARE AND FIGURE OUT THE BABY STEPS, THE LILY PADS THAT YOU CAN JUMP ON TO GET TO THE OTHER SIDE OF THE LAKE TO GET YOU WHERE YOU WANT TO BE FROM WHERE YOU ARE. I THINK THE INTENTIONALITY COMPONENT IS PARTICULARLY IMPORTANT AND THAT SHOULD BE THE NORTH STAR AS YOU THINK OF ANY KINDS OF INITIATIVES AND MAKE SURE THAT ANYTHING YOU PUT FORWARD SERVES TO MOVE FORWARD. BAHIYAH: OUR TRADING NONPROFIT, INVESTMENT FIRM, ADVISORY FIRM IS HERE TO WORK WITH WHOMEVER IS READY TO CONTINUE TO INVEST IN THE NEXT GENERATION OF ALPHA GENERATORS, LIKE MIRIAM AND KJ'S FIRM. THERE ARE HUNDREDS OF THEM AND THEY ARE ALL DOING INCREDIBLE WORK IN SOURCING AND SELECTING FOUNDERS IN PARTICULAR REGIONS IN THE U.S. AND ABROAD. WE ARE HERE TO HELP, AND WE ARE HERE TO ACCELERATE AND AMPLIFY THE PROCESS. WE ARE EXCITED TO PARTNER WITH THOSE -- I TALK ABOUT A COALITION OF THE WILLING. THAT IS WHAT WE ARE BUILDING HERE. RENITA: MIRIAM, YOU HAVE THE LAST WORD TODAY. MIRIAM: IF YOU ARE INVESTING, YOU HAVE AN ENDOWMENT AND ARE INVESTING THAT ENDOWMENT, MAKE SURE THAT YOU ARE INVESTING IN WOMEN AND PEOPLE OF COLOR IN YOUR PIPELINE. CHANGE YOUR POLICIES IF YOU ARE NOT ABLE TO. SOME WILL SAY WE CANNOT INVEST IN FIRMS THAT HAVE UNDER $3 MILLION IN ASSETS UNDER MANAGEMENT AND THEY MIGHT AS WELL SAY WE DON'T INVEST IN BLACK PEOPLE, LATINOS, OR WOMEN. I'VE SEEN MANY FOUNDATIONS CHANGE THEIR POLICIES TO CHANGE THAT. THE OTHER THING IS, IN YOUR OWN ORGANIZATIONS INVEST IN YOUR PEOPLE. WE SEE THAT WOMEN ARE NOT PROMOTED AT THE SAME RATE AS MEN REGARDLESS OF THEIR EXPERIENCE. WE ALSO NEED TO PAY THEM EQUALLY. IN ADDITION, I THINK THAT WE NEED TO HAVE MORE FAMILY-FRIENDLY WORKFORCE SO THAT WE CAN ACTUALLY KEEP WOMEN AND PEOPLE OF COLOR IN CORPORATE AMERICA AND GET SOME OF THE TRAINING THAT THEY NEED TO SUCCESSFULLY RUN THEIR OWN BUSINESSES. RENITA: I THINK THAT THAT IS A BRILLIANT PLACE TO LEAVE IT. THANK YOU SO MUCH FOR JOINING US. [APPLAUSE] RENITA: AND TO ALL OF YOU, AT THIS

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Investing in Diverse Founders

Miriam Rivera, CEO, Co-Founder and Managing Director, Ulu Ventures, Bahiyah Yasmeen Robinson, CEO and Founder, VC Include and KJ Sidberry, Principal, Forerunner Ventures discuss investing in underrepresented founders with Bloomberg’s Renita Young at the Bloomberg Equality Summit. (Source: Bloomberg)

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