How VC Can Repair the Broken Rungs of the Tech Ladder
Insights from SXSW 2024
The tech industry has long struggled with diversity and inclusion, particularly when it comes to the representation of women, non-binary individuals, and people of color. At SXSW, a panel of accomplished women from different corners of the tech and venture capital (VC) community came together to discuss the current state of diversity and share their insights on how to repair the “broken rungs” of the tech ladder.
Panelists
- Jenny He, Position Ventures
- Gabie Kur, Codeword
- Judene Small, Andreesen Horowitz
- Dana Wildeboer, All Raise
Key Takeaways
Progress and Challenges
The panelists acknowledged that there has been some progress in recent years, with more female-founded startups receiving funding and an increase in the number of women in check-writing roles at VC firms. However, they also highlighted the persistent lack of parity, noting that only 1% of all Limited Partner (LP) dollars go to female fund managers.
The Rise of Emerging Fund Managers
One of the key trends discussed was the rise of emerging fund managers, many of whom are women and people from diverse backgrounds. These managers are helping to drive more capital to underrepresented founders by investing in what they know and understand. By bringing diverse perspectives to the table, emerging fund managers have the potential to generate outsized, contrarian returns.
The Importance of Male Allyship
The panelists emphasized the crucial role that male allies play in elevating women in VC. This includes hiring women into check-writing roles, promoting them, and sponsoring their growth. Building trust and fostering a sense of community across gender lines is essential for creating a more inclusive industry.
Harnessing Diversity of Thought
Initiatives like Andreessen Horowitz’s Cultural Leadership Fund aim to connect a diverse range of cultural leaders with tech investment opportunities. By leveraging the power of diversity of thought from non-traditional check writers, the industry can fund a wider variety of companies and drive innovation.
Advice for Entrepreneurs and Startup Leaders
For entrepreneurs and startup leaders, the panelists offered the following advice:
- Seek out diverse investors who understand and relate to your problem space and target market.
- Build relationships with emerging fund managers who may be more willing to take a chance on unconventional ideas.
- Foster a culture of inclusivity and diversity within your own organization to attract a wider range of talent and perspectives.
The Road Ahead
While the tech industry has made some progress in recent years, there is still a long way to go to achieve true diversity and inclusion. By supporting emerging fund managers, fostering male allyship, and harnessing the power of diversity of thought, we can work together to repair the broken rungs of the tech ladder and create a more equitable future for all.
Learn More
We curated our key takeaways with social impact startups in mind. Listen to this session in its entirety to hear the many nuanced insights shared in this hour-long conversation that we simply can’t capture in our brief article.
Explore our in-depth coverage of Social Impact Sessions & Speaker Highlights, Startup-focused Sessions, and Top AI Keynotes & Sessions at SXSW 2024.
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