Diversity VC Digest ☕🤑
Your (monthly) digest of all things DEI in venture capital. April edition.
Welcome to April’s Diversity VC Digest, another month of all things DEI in venture and startup, including the true value of trust and ethics in VC, Apple’s kiss of death ☠️, and of course, the latest funding news, funds to watch, upcoming events and conferences, and the headlines making the case for diversity in VC…(Extra special treats this month too, read to the end for our strongest Resource list yet 🤌💋)
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2023 has come at us a mile a minute with so many news stories and curve balls - remember only mere weeks ago when we thought FTX would be the pinnacle of our collective crisis?! Ah those halcyon days before even non-financiers acquainted themselves with the acronym SVB…! - it can feel like a losing battle to maintain focus and even more difficult to stay the course when it comes to a more equitable and representative venture industry. One that can adapt and evolve to continue funding innovation well into an uncertain future. With that in mind, we want to highlight the Open Letter from Black Women in Venture Capital to Andy Kessler & WSJ Editors in response to “that” 🙈 WSJ op-ed coverage of the Silicon Valley Bank collapse.
We urge you to read the letter and to engage with Black Women in VC, a particularly rousing example of their forethought and balancing of the situation we find ourselves in are particularly prescient in the following passages: “Although Black venture investors make up 4% of all venture investors and 3% of Black partners, they’re 4x more likely to invest in Black entrepreneurs than their non-Black peers, per the BLCK VC State of Black Venture Report. Additionally, Black investors are much more likely to invest in women and Hispanic founders than the industry average.” Meanwhile,
“There is much work to be done, starting with ensuring that our communities aren’t overwhelmingly negatively impacted by the current economic situation. As often happens in these situations (i.e., 2008 Great Recession), BIPOC communities are oftentimes worst impacted by these situations and left behind in any recovery.”
Trust and ethics are fast picking up interest and support as VC, alongside the wider financial system, recalibrates in a changed world. Our friends at Sifted have delved deep into this in recent reporting that a political corruption scandal at a public body in Poland responsible for distributing EU grants means dozens of startups haven’t gotten their cash. Some are facing bankruptcy. As well as their deep dive into toxic VC culture. The bottom line? Trust is a big deal. For everyone in the ecosystem from VC employees and founders right through to regulators and asset allocators. The FT report that SVB’s new management ‘struggling to restore trust’
Diversity VC is a proud champion of DEI across the venture industry - with all of the nuances that that brings - and we are excited to be amplifying these messages with key strategic allies throughout 2023. Watch this space for more details.
We are particularly looking forward to welcoming Diversity Member funds to our off-the-record AMA chat with Stephen Nundy, Partner at Lakestar - a Diversity VC Member fund - in the coming weeks. Stephen and the Lakestar teams focus on DEI to drive venture returns is inspiring to hear.
Policy trends
Hear from Diversity VC’s Head of Community & Content on the case for diversity, equity and inclusion in investment, at a recent Taylor Vinters panel as part of their Impact Investment series.
Jared Lanier, a founder in the field of virtual reality, writes that “data dignity” could be an even bigger part of making AI a fair solution for all. A telling admission hot on the heels of reporting revealing Google’s rush to win in AI led to ethical lapses, employees say.
In the US: Biden regulators want to beef up oversight of nonbank giants — The Financial Stability Oversight Council, a panel of top regulators led by Treasury Secretary Janet Yellen, is planning to undo Trump-era policies that made it harder to designate nonbank firms as “systemically important” and subject them to stricter rules by the Federal Reserve.
Diversity in venture news
Bethnal Green Ventures have launched a research project to understand the level of angel investment going into tech for good businesses in the UK and beyond. You can fill out the survey here.
Ananda Impact Venture’s VC Partner, Zoe Peden outlines ‘5 things I dislike about venture capital beyond D&I’.
One third of Playfair Capital’s investments went to women founders. Find out how they are turning the current paradigm on its head. More from Chris Smith here. Hint: it’s not a pipeline problem! More from Yonca Braeckman at Impact Shakers and their European and impact lens to underscore that this is very definitely not (!) a pipeline problem. Read about the upcoming Impact Shakers Summit here.
Capital raised by VC funds fell off a cliff in 2023. But when you look at VC funds led by women, the amount raised is so small you can’t even see it on the graph! So starts the Managing Partner at January Ventures, Maren Bennon’s, post. A punchy wake up call for those of us working to course correct the dial in Maren’s insightful Pitchbook data analysis here.
Diversity, Equity and Inclusion Efforts Experience Modest Gains Among Venture Capital Firms, According to VC Human Capital Survey. More from Deloitte here.
This Downturn Will Show Us Which LPs Actually Believe In Diversity
Not that we agree with the positioning of diversity as purely a marketing exercise, but an interesting insight into how traditional consultants are advising - and potentially flattening the historical relevance of the term ‘woke’ - their clients when it comes to engaging on the topic of “Is being ‘woke’ good or bad for business?”
Alphabet CEO’s pay soars to $226 million on huge stock award. CEO compensation has become a particular touchy topic in the technology industry - especially after a wave of layoffs at Alphabet and other major companies.
Apple’s ”kiss of death”.
People moves
SVB Financial Group, the bankrupt former owner of Silicon Valley Bank, said CEO Greg Becker and CFO Daniel Beck have resigned, more than a month after the lender collapsed into receivership. Bloomberg has more here.
Hambro Perks CEO Dominic Perks has resigned. In an unexpected move, the head of prominent the London venture capital firm has abruptly left his role, casting doubt over the future direction of the investment group.
Funds and funding news
The Future Fund faces probing amidst scrutiny of the taxpayer funded vehicle. Read more here.
The lowest founder satisfaction rate in Europe. Where is it all going wrong for Oxford University’s spinouts? Sifted dive in here.
BDC, owned by the Government of Canada, launched a $150 million Sustainability Venture Fund that it says will be dedicated to funding tech that supports the world's sustainability and climate targets. This new fund will be funnelled into sustainability-oriented startups at the A and B stage with SaaS, hardware-enabled software, and software-led business models. More here.
In other climate tech news: Funding fell in both the US and Europe in Q1 2023 — but far more drastically in Europe, according to data from Net Zero Insights.
The share of non-equity financing like debt and grants, however, held steady. It accounted for 42% of the total $14.5bn invested in climate tech companies in Europe and the US this quarter.
Vice Ventures, a four-year-old venture firm focused on nontraditional ("bad") industries like sex-tech and psychedelics, says it has closed its second fund with $25 million in capital commitments. VentureBeat has more here.
Novalith Technologies, a three-year-old Sydney startup that uses carbon dioxide to simplify the production of lithium chemicals, thereby reducing production costs and creating a smaller emissions footprint than existing processes, raised a $15.5 million Series A round led by Lowercarbon Capital and including The Clean Energy Finance Corporation, The Grantham Environmental Trust, TDK Ventures, and Investible. More here.
Nosh, a three-year-old Berlin startup that aims to create fake meat out of mushroom mycelium, raised a $3.5 million round led by Earlybird Venture Capital, with Clear Current Capital, Grey Silo Ventures, and Good Seed Ventures also contributing. Tech.eu has more here.
Enter, a three-year-old Berlin startup that uses a combination of tech and human expertise to help its customers decarbonize their homes, has raised a $21.3 million Series A round led by Target Global, with Coatue, Foundamental, A/O Proptech, and Partech also participating. TechCrunch has more here.
Woodoo, a French startup that makes carbon-free materials out of wood molecules, has raised a $31m seed round from investors including Lowercarbon Capital.
Rabot Charge, a German startup that helps homeowners purchase cheap electricity, has raised €1.5m.
Community spotlights
🎉 Congratulations and welcome to our freshly minted Diversity VC Standard community member 🎉
👏 Systemiq
Give them a follow and reach out for a coffee ☕
Get in touch if you have a passion for DEI in venture and want to support the movement from insights to action in your region.
Find out more about joining the Diversity VC Standard community and becoming a certified Fund here.
Future VC
New roles for those in your networks looking for junior, including associate and intern, roles at VC Funds - be a guardian angel and share this link: Future VC Jobs Board
Want to post a role? Get in touch here.
Mark your calendars
Deaf Awareness Week - May 1 - 5
Black Inclusion Week - May 8 - 12
Coronation of King Charles III - May 6
Tourette’s Awareness Month - 15 May - 15 June
International Day Against Homophobia, Transphobia and Biphobia (IDAHOBIT) - May 17
Global Accessibility Awareness Day - May 18
George Floyd’s Anniversary - May 25
Web Summit, Rio - May 1-4
Impact Investment Conference, London - May 4-5
Catalyst Cap Intro: High Alpha Funds, Miami - May 8
Got tips?
Have a tip? Want to be featured for some excellent diversity, equity and inclusion work your Fund wants to shout about? Email us with your stories.
Added value…
You can add the Diversity VC 2023 calendar for a list of the conferences and diversity & inclusion days for the year ahead: here
Entrepreneur’s Collective 100+ Startup Resources
Taylor Vinter’s ‘Data Rooms: Getting yourself investment ready’
Alternative Funders Guide with Founders Factory
Venture Forward’s curated DEI resource list
The most active operator angels in the DACH region
Europe's most active climate angels
European fintech's most active angel investors
Please take five minutes to fill out the Equity Record (UK) survey.