Business

Female-, Minority-Run Startups Have Tougher Fundraising Road, Study Says

By: Timothy Hay –

Female and ethnic-minority entrepreneurs are significantly less likely to raise venture capital or private equity funding than their white, male counterparts, a new study fromPepperdine University’s Graziado School of Business and Management said.

The study, which looks at extensive fundraising data from the years 1995 through 2009, found that businesses that are minority-, female- or foreign-owned are 21.7%, 2.6% and 8.8% less likely to raise private equity funding, respectively, than their white counterparts.

The numbers are even more stark when it comes to venture capital, the study found. Minority-, female- and foreign-owned companies are 22.2%, 18.7% and 17.9% less likely to successfully raise a venture round than companies run by American-born white males.

The study adds fuel to a long-running conversation about diversity, or lack thereof, in the technology world. Many tech companies rely on private equity, especially its smaller subset of venture capital, which tends to focus on startups.

To read this article in its entirety visit: WSJ

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Sharon Sanders

Sharon Sanders is a Digital Engagement Strategist and a Curator of information at The MinorityEye and the President of Clairvoyant, LLC which specializes in strategic communications and multimedia services. She has a B.A. in Psychology from Argosy University and she specializes in “Online Consumer Psychology.” Sharon provides companies with research and insight into the processes underlying consumer behavior in online environments…

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