It’s time for LPs to take more responsibility in the fight for economic equality – Meczyki.Net

last decade Black Founders has seen a small portion of venture capital funding raised. How to fix the problem? There’s always one answer to that question: Allocate more capital to black entrepreneurs.

But that is yet to happen. In fact, black founders receive less than 1.5% of all VC funds, whether in a bull or bear market. So what is going on?

Perhaps it is time for this discussion to focus on Limited Partners (LPs), especially because they sit at the top of the VC power structure. According to MacKeever Conwell, founder of Rarebreed VenturesIf LPs are not allocating more money to diversified funds or managers, then, in some ways, there will always be a shortfall of capital that can – and likely will – be allocated to diversified founders.

At the institutional level, the responsibility for change rests with those who have the power to do so. Supporting diversified funds means supporting diverse thinkers and their networks. it is necessary, Then, pressure LPs to back more funds that prioritize diversity, support diversified funds and managers, and create specialized funds to invest in diversified founders.

“Reward the actual behavior and not the intention.” Mixtrose co-founder Kerry Schrader

The amount of capital allocated to diversified individuals needs to be increased, and LPs should first Meditation and re-establish our own core values ​​to drive economic equality.

“There will always be reasons to question how much they really care,” Conwell said. “But we will see with time.”

mandate of responsibility

Asosa Johnson, co-founder of Black Women Talk Tech, told Meczyki.Net that LPs have the power and flexibility to demand that at least part of their capital be allocated to diversified founders as fund managers as their source of funding. Grateful to them.

Regarding fund managers, he said, “their feet are not on fire.” “After all this time, they need to be held there.”