Invest Impactly is a big fan of Oakland California based Kapor Capital, Kapor Center and their work to fund and support startups that are purposely diverse and inclusive, while engaging with communities of color and minorities in the US, and working at the “intersection of technology, racial and social justice.”
Kapor’s Commitment
So it is not surprising to hear the announcement they made last Thursday January 21, a new mechanism called the Kapor Capital Founders Commitment, that explicitly calls for practices among startups that prioritize diversity.
The commitment is expected to be codified in all investment agreements the VC firm arranges, according to coverage by the San Francisco Chronicle.
***
“Despite promises from executives, shaming from outsiders and even goading from the federal government, tech companies still lack women, Latinos and African Americans. So an Oakland venture capital firm is taking a different route: Funding only startups that prioritize diversity.
Kapor Capital’s new Founders Commitment, announced Thursday, is believed to be a first in the venture world. It will be a standard item in all new investment agreements the firm makes.
Kapor expects to invest $25 million over the next three years. The pledge does not include hiring quotas. Instead it requires companies that seek Kapor’s investment to codify diversity goals and regularly report their progress.
The venture capital firm is allowing the 111 companies already in its portfolio — which include Bitly and Uber — to opt into taking the pledge. So far, 52 have. Bitly has, but Uber hasn’t.
“We’ve seen how difficult it is for the big tech companies to try to retrofit diversity and inclusion,” said Freada Kapor Klein, a partner at Kapor Capital and a national expert on diversity. “Baking diversity and inclusion into a company’s culture early can provide the foundation to build a much more representative workforce in later stages of growth.
The founders have also published a post on Medium announcing the Commitment.
1. Establish diversity and inclusion goals that are appropriate for the company’s funding stage, employee size, customer base, and core business. Include progress on diversity and inclusion in your quarterly investor updates.
2. Invest in tools, training programs, and/or resources that assist with mitigating bias in recruiting, hiring, and employment.
3. Organize volunteer opportunities for employees to engage with underrepresented communities, especially those that reflect the company’s customer base.
4. Participate in diversity and inclusion sessions to learn about what works and what doesn’t. These sessions will be hosted by Kapor Capital and will be made available for virtual participation as needed.”
Sources: SF Chronicle, Medium
