Arian Simon is working to shed light on the existing inequalities in venture capital (VC) in America. By sharing her personal experiences of starting a business, she addresses the challenges of access to capital and the inequalities present in this field. She found that women of color, who make up nearly 20% of the U.S. population, receive only 0.39% of venture capital investments.
Investment Challenges for Women of Color
Simon states that despite Black women comprising about 7% of the U.S. population and being more likely than any other group to start businesses, research shows they receive less than 0.35% of venture capital investments. In fact, women of all races receive less than 2% of total venture capital investments, with the majority of this capital going to male founders.
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The Role of Investors and Financial Resources
Simon points out that most venture capital comes from sources such as public employee pension funds. These employees are diverse, with 44% being women, 18% Black, and 10% Latinx. However, overall, white men control most of the capital, with only a tiny portion of these funds allocated to minorities and women.
Expressing concern about this situation, Simon states that given the long history of economic inequality faced by minorities, especially Black individuals, it is essential for investments to reflect the diversity of society. She believes that change in this system is not only possible but can also help create more opportunities for minorities.
She also notes that the lack of diversity in investments leads to the loss of talents and abilities of many individuals, which harms the national and global economy. As a Black woman, Simon sees herself in a position to help change this situation and believes that if she wants to see change, she must be part of that change.
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