Morgan Stanley Survey

VC Firms Are Missing the Opportunity to Increase Investments in Women and Multicultural Founders, Despite Widespread Acknowledgement of the Competitive Advantage Associated with These Companies - Seite 2

• Among VCs who have hired more diverse fund managers, LPs, partners or board members, 71% report it as a “very effective” way to increase the diversity of companies and founders they invest in; and
• Nearly two-thirds of multicultural founders reported that they have had more success with diverse VC firms.
• Yet, only 11% of entrepreneurs say that they have interacted with VC firms that are diverse in terms of both gender and race.

The survey findings are featured in Beyond the VC Funding Gap, Morgan Stanley’s second annual investor survey and report examining the funding landscape for women and multicultural entrepreneurs and the investor attitudes and behaviors that perpetuate the funding gap. The report offers a playbook with recommendations for VCs to help the industry take advantage of the trillion-dollar opportunity¹ that the funding gap represents.

The online surveys of 58 VCs who are almost exclusively leads or co-investors with an average equity check size of $9.4 million; and 141 women or multicultural founders who have raised VC funding for at least one of their businesses was conducted on behalf of Morgan Stanley by Brunswick Group between August 19, 2019 and September 13, 2019 in the U.S.

The full report and survey results can be viewed online here.

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[1] Morgan Stanley (December 2018). The growing market investors are missing: the trillion-dollar case for investing in women and multicultural entrepreneurs. https://www.morganstanley.com/pub/content/dam/msdotcom/mcil/growing-ma ...

The Trillion-Dollar Opportunity: To help put the cost of unequal access to capital into context, consider a scenario where revenues for WMBEs are proportional to their representation in the U.S. labor force. Using data from the U.S. Census Bureau’s 2012 Survey of Business Owners and the U.S. Department of Labor’s Bureau of Labor Statistics, we know revenues for women and minority businesses were $2.4 trillion. Had the number of women and minority-owned businesses and portion of revenues matched their percentage in the labor force − 56% − then 2012 gross receipts would have increased to $6.8 trillion, suggesting a missed opportunity of up to $4.4 trillion.

View source version on businesswire.com: https://www.businesswire.com/news/home/20191023005451/en/