Data indicate that VCs overlook the opportunity to invest in women- and multicultural-led businesses—and thus miss out on potential profits. Morgan Stanley surveyed nearly 200 VCs and diverse entrepreneurs to understand the reasons for this funding gap.
VCs acknowledge the opportunity in investing in women and multicultural entrepreneurs.
Yet VCs we surveyed do not appear to be taking steps to increase their likelihood to invest in diverse entrepreneurs.
3 out of 5 VCs say that investing in diverse entrepreneurs is not a top priority for their firms.
VCs who say it's a firm priority to invest in women entrepreneurs
VCs who say it's a firm priority to invest in multicultural entrepreneurs
Challenge Entrepreneurs Face
VC’s rigid definition of "fit" interferes with their ability to realize this market opportunity. These are the top challenges entrepreneurs cite for not receiving funding.
The Morgan Stanley
Playbook for VCs
The attached report makes the business case to VCs that closing the funding gap is a strategic imperative, and provides them with the playbook they need to take advantage of an emerging market right here in the U.S.