Four TRILLION Dollars

Four trillion dollars. It’s not the US national deficit. That is a mere one trillion. Four trillion dollars is the amount the venture capital industry is leaving on the table by not investing in diverse founders. That’s according to a new Morgan Stanley study. This is a massive opportunity cost that continues in the VC industry.

So what can you do? If you are looking to invest in venture capital, check the diversity metrics of the portfolio companies your VC firm has invested in. Demand that they make investing in gender and ethnically diverse companies a priority because you want the highest returns. Make sure the partners in the VC fund are diverse themselves. And finally, make sure they are nominating and searching for female CEOs on CEOX.

There is a lot more money to be made out there, if only venture capitalists start investing in women and ethnically diverse founders.