We're pleased to share a new piece out today in ImpactAlpha on "Mitigating the systemic risk of anti-LGBTQ+ sentiment in investing." The article, authored by Colorful Capital Co-GP William Burckart, provides a snapshot into The White House convening last month, which gathered for the first time a group of venture capital investors, industry associations, and entrepreneurs for a dedicated discussion on the state of capital allocation to #LGBTQ+ led and focused funds and startups.
Organized by Patrick Driscoll, a leading investor and advocate for LGBTQ+ equity, the goal was to educate public sector leaders on the barriers that LGBTQ+ fund managers and startup founders face and provide actionable recommendations to improve the flow of capital.
From the article:
"All of these policies and practices have tremendous effects on our economy and financial system. We see income disparities, workplace discrimination, lack of corporate leadership, criminal justice and persecution, disparities in healthcare, education, and treatment of LGBTQ+ youth, and lack of housing and retirement support. These issues drain resources, while also preventing LGBTQ+ individuals from fully participating in the economy." [In reference to the deluge of anti-LGBTQ+ bills being introduced at the state level throughout the US.]
"The exclusion of LGBTQ+ individuals from our economy, and specifically, the investing space, is what is known as a “systemic risk.” Most investors believe markets are objective and efficient in pursuit of returns. Yet the market fails to account for the true level of systemic risk arising from continued inequitable treatment of and barriers for the LGBTQ+ community."
The event inspired a range of challenges, opportunities, and breakthroughs needed going forward, but one clear call to action that emerged from the meeting is the opportunity for the U.S. Securities and Exchange Commission to replicate or adapt SEC’s Asset Management Advisory Committee's subcommittee focused on gender and racial diversity. Creating a similar subcommittee within the SEC to focus on LGBTQ+ issues, or expanding the scope of the existing subcommittee to explicitly encompass LGBTQ+ individuals could help to mitigate the risk of LGBTQ+ exclusion within the market and futureproof progress.
Read the ImpactAlpha article here: https://lnkd.in/emVcdAuV
For more, check out Colorful Capital's recent report co-authored by William and Lloyd He, with an introduction by M.V. Lee Badgett on "Outsized Impact: How Investment Can Address the Systemic Risk of LGBTQIA+ Inequity": https://lnkd.in/ggxWUP5f
Copying in the Colorful Capital brain trust: Co-GPs Megan Kashner and Soltan B., and Advisory Group members Sloane Ortel, Zach Stafford, Steven Godeke, Otho Kerr, Priya Parrish, Katrina Ngo, Christopher Barrett Politan, Lara Metcalf, Carlos Vargas
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