SILICON VALLEY, Calif., April 2, 2024 (Globe Newswire) — The McWhorter Foundation announces its call on Sequoia Capital to further diversify technology entrepreneurship. Recent analysis highlights a significant drop in venture funding, down 86% from $4.9 billion in 2021, and funds founded by historically underrepresented groups such as Black entrepreneurs and women. This is a major setback for startups. This decline across all funding stages – angel, seed, early stage, and late stage – points to systemic barriers in the venture capital landscape, particularly impacting Black entrepreneurs and startups led by women. .
Research shows that start-ups led by black entrepreneurs face more significant challenges, including securing external capital, especially external debt. This is often due to anticipated loan rejections based on racial differences in treatment by banks, resulting in lower loan application rates. Similarly, women in the technology industry, especially those from underrepresented backgrounds, are severely constrained in securing venture capital, which is essential for rapid business growth, despite making up the majority of U.S.-owned companies. facing.
Historically, Black inventors and women have made significant contributions to technology and innovation. Lewis Latimer, the son of an escaped slave, greatly advanced the development of light bulbs and telephones by inventing longer-lasting filaments. Garrett Morgan invented his three-position traffic light to improve traffic safety. Mark Dean holds three of IBM’s original nine PC patents and has had a huge impact on the computing industry.
Women’s contributions are equally groundbreaking. Hedy Lamarr’s research on frequency hopping laid the foundation for the latest in her Wi-Fi and her Bluetooth technologies. Dr. Shirley Ann Jackson’s research in theoretical physics made possible the invention of the portable fax machine, the touch-tone telephone, the solar cell, and the fiber optic cable. Radia Perlman invented the Spanning Tree Protocol (STP), which is essential to network operations and is also referred to as the “mother of the Internet.”
The McWhorter Foundation recognizes these disparities and the urgent need for a more inclusive and equitable innovation ecosystem. By calling on leading venture firms like Sequoia Capital to support efforts to highlight disparities and remove systemic barriers. This initiative is dedicated to celebrating diversity and fostering support for innovation led by historically underrepresented entrepreneurs.
Addressing these challenges and honoring the legacy of past innovators requires a multifaceted approach. This includes promoting financial inclusion, providing equitable support and resources, and fostering an environment where diverse voices are heard and supported. In doing so, the Foundation aims to pave the way for future generations of innovators and ensure that the venture capital investment environment is as diverse as society.
Disclaimers, Disclosures and Legal Notices:
This press release is for informational purposes only and does not constitute legal, financial, or investment advice. It is not intended to provide specific recommendations, recommendations, or investment strategies. Information contained herein is subject to change without notice.
Regulatory considerations:
This press release does not constitute an offer to sell or a solicitation of an offer to buy any securities. Any offer, sale, or purchase will be made in accordance with applicable securities laws and regulations. The McWhorter Foundation is not registered with the Securities and Exchange Commission (SEC) and may operate under exemptions. All investment decisions should be made in consultation with appropriate legal and financial advisors, taking into account a potential investor’s individual circumstances and objectives.
Forward-looking statements:
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