What does “building back better” mean to us and how will Zane be part of it?
Did you know that 50% of global Venture Capital is in the United States?
“As of August 31st, 2020 — Crunchbase found that Black and Latinx founders raised $2.3 billion in funding, representing just 2.6% of the total $87.3 billion in funding that has gone to all founders in 2020.” — CNBC
This lack of government assistance has only exacerbated the inequalities in access to financing that diverse founders were dealing with even before the pandemic. Nevertheless, these founders managed to pivot and succeed. At Zane Venture Fund, we know the incredible resilience and flexibility of diverse founders, as we have witnessed their work firsthand.
Individuals that are so often counted out, are the exact individuals we choose to believe and invest in. We know that their experience and ability to overcome obstacles and persevere increases their potential for success.
Immigrants are the perfect example of this phenomenon in America. Overly affected by economic and health crises — due to language, cultural and other barriers — there is an extreme difficulty for them to access even basic support such as healthcare and general assistance.
During the global pandemic, the administration halted new immigrants coming into the country and announced they would review DACA, further jeopardizing the stability of millions — many of whom were essential workers, and were more likely to become infected.
This global pandemic exposed that the “normal” some wanted to return to, wasn’t working for too many. A common phrase heard around the nation these days is, “Build Back Better.” But what does this mean?
A system that is not inclusive of all is not a system we want to build back.
What did the founders of our country truly mean by “liberty and justice for all” if the current (and prior) state of our nation has looked like anything but?
Biden’s administration will help VC in general, but additionally, it should help diverse populations that have previously been invisible to sources of capital. Not only are Biden’s picks the most diverse in United States history, they are also experienced and qualified.
For example, his pick of Isabel Guzman for SBA, not only ticks a diversity box, but brings her entire repertoire of experience, background and knowledge to reform the agency and really, “build back better”.
Photo Source: INC Magazine
As for immigration, Biden has plans to create a path to citizenship for undocumented immigrants and has concrete actions in the first 100 days to stem the spread of COVID-19, essential to enabling economic progress to resume and getting all back to work — safely.
So… what does Diversity mean to us here at Zane?
At Zane, we believe that diversity isn’t just race or gender. We aim to foster a culture that values individual differences and experiences such as ethnicity, age, gender, and disability.
- Not a solo founder: Teams with more than one founder outperform solo founders by a whopping 163% (http://10years.firstround.com/)
- At least one female co-founder: teams with at least one female co-founder performed 63 percent better than male-only teams
- Racially diverse: Racially diverse teams also perform 35% better than their industry peers.
Zane has been committed to diversity and inclusion from day one. This also includes LGBTQIA, and indigenous people groups.
It’s not just up to Biden and his administration to change our country. We all have a part to play.
Diverse Founding Teams are empirically proven to outperform their peers, and are key to building back better (or building anew). Zane’s mission is to actively seek out diverse teams, and make them visible. At the Zane Venture Fund, we provide capital from Seed to Series A and beyond; through our Zane Access programs like the Capital Readiness Cohort and Access University, we provide mentoring and exposure to our seasoned VC team and networks.
Through partnership with Zane, you are working to create a better future for yourself, for your peers, for your families and for the world.
Star Tribune Article: Third round of PPP has begun, with a head start for minority-owned businesses
Al Dia Politics Article: Biden picks Isabel Guzman for Small Business Administration, fulfilling a promise to Latinos
ABC News Article: What to know about Joe Biden’s pathway to citizenship immigration plan
U.S. Chamber of Commerce Article: Coronavirus Pandemic Hits Minority-Owned Small Businesses Disproportionately Hard, New Poll Shows