Indie.vc’s v3: Did someone mention diversity?

When Indie.vc started three years ago, it saw two or three applications a week, mostly from venture capital rejects. Now it gets as many as 10 applications a week, mostly from companies that could raise venture capital but don’t want to, said Bryce Roberts, the firm’s founder.

— Erin Griffith in More Start-Ups Have an Unfamiliar Message for Venture Capitalists: Get Lost, New York Times

As Kara Swisher’s guest Jason Fried said on the Recode podcast a couple of weeks ago, “venture capital money kills more businesses than it helps.” Then again, it’s got upsides as well: the right VCs can open up a lot of possibilities for a startup, both by providing the money to spend ahead of revenue and just as importantly bringing entrees to potential customers and key hires, solid advice, credibility, and access to a valuable network. Are there ways to get the positives without the downsides?

When Seattle startup mainstay (and Create 33 Director) Rebecca Lovell told me that Bryce Roberts was giving a fireside chat about Indie.vc’s upcoming v3 batch, it seemed like a good opportunity to find out more. As indeed it was! Bryce’s brief presentation was clear and to the point. As Alan Meekins, founder of RosHub, commented to me afterwards, Indie.vc‘s model leads to founders retaining higher equity, so they have an opportunity to enable more win-win outcomes for their portfolio.

The presentation isn’t available online as far as I know, but most of the material is available elsewhere on the web: in textual form in Bryce’s v3 post and the v3 FAQ on the Indie.vc site, or as podcasts on Product Hunt Radio podcast with Ryan Hoover and Rad Dad with Kirill Zubovsky.

There was also plenty of time for question and answers, covering a variety of topics. I even got a chance* to ask one myself!

Did somebody mention diversity?

Detail from Bryce Roberts’ v3 slides at Create 33

One thing I really liked about Bryce’s presentation was that he was explicit about industry-wide diversity problems — and Indie.vc’s own much-better-than-industry-norm numbers. They’re in the v3 announcement post too, in the footnote:

50% of the companies we’ve backed are led by female founders. Nearly 20% are led by black founders.

A lot of VCs try to explain that their non-diverse portfolios aren’t due to any bias, no, of course not, they actively try to fund marginalized founders, it’s just that people don’t apply or there aren’t any investment opportunities that “meet their bar.” Indie.vc’s numbers – and the success of the founders and companies they invest in — make it clear that in reality, people do apply and there are plenty of good investment opportunities out there.

It’s a strategy that makes a huge amount of business sense for Indie.vc and their parent company, Tim O’Reilly’s OATV (where Bryce is Managing Director along with Marc Jacobson). Arlan Hamilton of Backstage Capital talks about diversity as a competitive advantage: founders from groups who have been the targets of the VC and tech industries’ historical biases are generally underestimated. The Indie.vc founders Bryce mentioned in his talk — Angelica Nwandu of the Shade Room, Thompson Aderonkomi of Nice Healthcare, and Sarah van Dell of Plum Relish — are exactly the kinds of people (and companies!) any VC should want to invest in.

Too many VCs find excuses not to — or try to do better, but don’t make any real progress. So after complimenting Bryce on Indie.vc’s numbers, I asked what they had done to achieve this diversity.

It’s not rocket science

Bryce started by citing Marci Harris’ post from 2015.**

The indie.vc model seems, at first blush, designed to reward and encourage many of the qualities frequently cited as inherent characteristics of women entrepreneurs. For many, that will be a welcome departure from the norm — and potentially quite a lucrative one.

— Marci Harris, Bullish on indie.vc, the Li.st

From Bryce’s perspective, this post — coming at an early stage in Indie.vc — helped them realize they should pay attention to this opportunity. In some ways, he added, just being aware is really the most important thing; being mindful of what they were doing and making it a point to extend the invitation broadly. He also gave a couple of very concrete examples, talking about the way their application process cuts down insiders’ advantages, and noting the importance of putting forward diverse founders’ faces and stories (as he done in his presentation and blog post).

These are all good points. And the followup to the fireside chat illustrates a great example of the value of extending the invitation: Astrid Scholz of Zebras Unite responded to Bryce’s offer of a private online session for groups of founders and investors, and now Indie.vc’s presenting another large, diverse, woman-led group right in their sweet spot. Funny how that works!

It’s not like any of these things are rocket science … and that’s an important point. When you start looking at improving diversity the way you would any other important business problem, there are very often straightforward things you can do that have a real impact. When Rebecca and I co-chaired the Northwest Entrepreneur Network’s First Look Forum pitch competition a few years ago (along with Rochelle Whelan), we got huge improvements in diversity just by deciding to prioritize it*** and making some straightforward improvements to our outreach, training, and processes.

But most VCs don’t. So kudos to Indie.vc for thinking about it.

Resisting the gravitational pull

At the end of his answer, though, Bryce mentioned that they’re not seeing the same kind of gender diversity numbers in the early applications to the current v3 iteration. Instead, the overwhelming majority of applications are from guys. The deadline’s not until March 1, but once a pattern like that sets in it can be very hard to change.

There’s an important underlying point here: even when you’ve got a diverse group, it doesn’t necessarily sustain. Pinterest is a good example: Abby Maldonado and Evan Sharpe 2016 Tech Inclusion fireside chat discussed how their relatively-diverse engineering team turned into a much-less-diverse team before they realized what was going on. One way to think of this effect: the intersecting dimensions of power and demographics in the tech and startup worlds cause a “gravitational pull” that tends to drag you in a cis able-bodied white male direction.

To counter this, even after you’re off to a good start, it’s important to put processes, systems, and people in place. One simple example that could have helped Indie.vc’s v3: going beyond just extending the invitation to a more organized diversity-focused outreach strategy — involving groups like Code2040, Lesbians Who Tech, and Tech Inclusion. And this outreach will go better if Indie.vc already has a presence in those communities; so having employees attend these conferences, and sponsoring some of them, will make things even more effective.

There are a lot more investors looking to fund underestimated founders than a few years ago — including new firms like Backstage Capital, Harlem Capital, and Precursor Ventures who have started from the beginning with this focus. And some traditional VCs are opening their eyes too; Jessica Guynn’s Black women entrepreneurs’ startups are changing Silicon Valley highlights founders like Julia Collins, whose robotic food prep company Zume Pizza just got a $375 million investment. Which means that at the same time as the gravitational pull is kicking in, Indie.vc’s competition is getting more intense.

So without taking anything away from their progress so far, if Indie.vc wants to keep their valuable diversity going forward, they’ll have to keep upping their game.

There are some great strategically-focused consultants who incorporate intersectional diversity and inclusion in their work and could be very helpful on different aspects of this problem, people like Y-Vonne Hutchinson of Ready Set, Nicole Sanchez of Vaya Consulting, and Bärí A. Williams. Hopefully, Indie.vc is already working with one or more of them and is listening to their advice.

Key takeaways

So there’s a lot to learn here on the diversity front — not just for other investors, but really for almost any company or organization looking to improve its diversity in a meaningful way. Here’s a short list:

Start by setting intention
Highlight diverse people’s stories and successes
If somebody tells you your offering is appealing to women in tech (or any other marginalized group), listen to them, and view it as an opportunity
Extend the invitation
Don’t assume that early successes will continue; instead, look for ways to build on them and institutionalize key practices and processes
Sustaining diversity requires investment

Again, none of this is rocket science. Which is good news! Since most companies today don’t bother doing any of them, it’s a chance for a competitive advantage against incumbents.

And it doesn’t get any easier if you wait. The best time to start focusing more on diversity and inclusion is when you’re just getting started. The second-best time is right now.

* eventually – after a guy who had already asked the very first question (and talked to Bryce for a while before the presentation) cut me off in order to ask a second question … well actually it was really a comment more than a question …. And later on, after the presentation, when I was waiting to talk to Bryce on his way out, the same guy interposed himself between me and Bryce again. Man!

** I resisted the temptation to interrupt and say “hey, I know Marci!” It’s a great example of how small the startup world can be: I blogged about Marci’s startup POPVOX back in 2011 in Patriot Act renewal: Time to make some noise. Fortunately, there’s an app for that!

*** As Tammarrian Rogers and I said in Supporting diversity with a new approach to software: it starts with intention

7 Organizations to Support on #GivingTuesday

The idea behind #GivingTuesday is a great one: leverage the buzz of Black Friday and Cyber Monday to spark interest on social media and encourage people to donate. It makes a lot of sense to complement the traditional end-of-the-year fundraising with a timely event when people are in the holiday spirit but haven’t yet blown their budget on Christmas gifts.

So here’s a short list of seven organizations that I’ll be supporting this year. Your mileage may vary, of course; there are many many other non-profit organizations doing outstanding work. But as you’re thinking about your giving, on #GivingTuesday and throughout the rest of the year, please keep these groups in mind!

The Center for Media Justice is a nationally recognized organizing hub representing the media policy interests and building the cultural leadership of hundreds of social justice groups across the United States — and one of the most important civil liberties organizations in the country. During this time of rising hate, online and off, it’s especially important to fuel the fight for the digital rights of those most vulnerable across the country. Donate here. Or, if you prefer to donate via Facebook, my friend Shahid Buttar (who’s on their board) has a Facebook fundraiser here.

The Gender Justice League fights gender and sexuality oppression in Washingon State and creates community where trans people live lives safely, true to themselves, and free from discrimination. As well as Trans Pride Seattle, they engage in 1-1 and community advocacy, building, growing, training, and mobilizing the Trans* and Gender Non-Conforming communities to address the systemic oppression the communities face. Gender Justice League founder Danni Askini is currently seeking asylum in Sweden after threats from white supremacists and persecution from the US State Department, so it’s a critical time to support them. Donate here.

The Northwest Immigrant Rights Project keeps families together, protects people from violence, and takes injustice to court. As well as high-impact litigation, including fighting racial profiling by border patrol officials in the Olympic Peninsula and securing the right to an attorney for mentally ill immigrants facing deportation, provide free legal services work, they support survivors of domestic violence, and do a huge amount of community education. Donate here.

Four Directions had a huge impact this fall with their work helping provide IDs to Native Americans in North Dakota this fall — leading to turnout increase of over 100% in some areas, and an upset victory over the state legislator who had authored the voter suppression law. They also did key work in several other states, focusing on full enfranchisement as a crucial way to navigate a stronger future for Native communities .Donate here.

SWOP Seattle is the local chapter of the Sex Workers Outreach Project (SWOP-USA), a national social justice network of organizations dedicated to the fundamental human rights of sex workers and their communities, focusing on ending violence and stigma through education and advocacy. This has been a brutal year for sex workers; as expected, the passage of the FOSTA/SESTA bill earlier this year has devastated many sex workers’ income and forced them into much more hazardous situations. Donate here.

Black Mamas Matter Alliance is a Black women-led cross-sectoral alliance that centers Black mamas to advocate, drive research, build power, and shift culture for Black maternal health, rights, and justice. Grounded in the human rights, reproductive justice, and birth justice frameworks, BMMA provides technical assistance, trainings, and capacity building for grassroots organizations, maternity care service providers, academia, and the public health industry. The first ever Black Maternal Awareness week they sponsored in April highlighted the shameful tragedy of preventable maternal deaths of women during childbirth – a burden disproportionally experienced by Black women. Donate here.

Mobilizing to help fight voter suppression

With only ten days before Election Day, it’s clear that a lot of races will come down to whose votes get counted. New ID requirements for Native Americans, moving the only polling place in Dodge City to the outskirts of town (a mile away from any public transportation) and then sending new voters the wrong address, voting machines changing votes in Texas, voter purges, “pending” lists … hey wait a second, I’m noticing a pattern here.

Voter suppression – largely directed against Black, Native American, Latinx, and student voters – has long been one of the major tools the right wing uses to stay in power in the US. 2018 is no exception. The Texas, Florida, North Dakota, Nevada, and Tennessee Senate races may well be decided by voter suppression; ditto for the Georgia, Kansas, Wisconsin, and Florida Governor races, and hundreds of other federal, state and local elections.

Fortuantely, all across the country, people are fighting back – with legal challenges, new IDs issued by Native American tribes, phone and text hotlines backed by pro bono lawyers, educating people about their rights, and dozens of other ways. A lot of the people and organizations on the front lines have been doing this for years and know what tactics work.

Here’s three things you can do to help.

Volunteer

The non-partisan Election Protection Coalition makes it easy to sign up as a poll monitor – and if you ‘re a lawyer, paralegal, law student or other legal professional, you can help with their voter assistance call site and field programs.

Many local groups also offer volunteering opportunities; try doing a web search for the name of your city or state and “voting rights organizations”.

Help get the word out

Many voter suppression techniques rely on intentionally confusing voters. One way that everybody can help counter this is to increase the chances that voters being targeted for suppression know their rights and have access to accurate information. For example:

Share the ACLU’s Know Your Rights information widely.
Let people know that there are hotlines in multiple langauges: 866-OUR-VOTE, 888-Ve-Y-Vota (from the NALEO Educational Fund), 844-Yalla-US, in Arabic and English (the Arab American Institute,), and 888-API-VOTE (APIAVote & Asian Americans Advancing Justice-AAJC).
If you know people in Georgia, remind them to check their registration information and that they can still vote if they’re on the pending list.
If you know people in Texas, let them know how important it is to double-check that their votes have been recorded correctly.
If you have trans and non-binary friends who are concerned about voting, let them know about NCTE’s #VotingWhileTrans page.

More generally, if you hang out on Facebook or Twitter, you can also help by liking and commenting on posts and tweets with useful information about voting rights. The engagement a post or tweet gets, the more visibility the platforms give it. While the effect of just a single like or comment is relatively small, a few dozen people working together can really have an impact.

And if you’ve got friends and acquiantances who care about the November election, try to get them involved as well. Share some of the links here (or even this whole article) with them and ask them to help.

Donate

Most of the groups involved here are grassroots organizations on a tiny budget; I’ve got a short list below. If you’re looking to contribute to a potential “Blue Wave” in the election, this is one of the most leveraged places to put your money.

There are a lot of excellent organizations working on this issue around the country … so many that it can be overwhelming. So here’s a short list of three well-respected organizations to use as a starting point.

Four Directions works with Tribes in Nevada, Arizona, Montana, North Carolina, Minnesota, North Dakota, and South Dakota and focuses on full enfranchisement as a crucial way to navigate a stronger future for Native communities. Donate here.

The Lawyer’s Committee for Civil Rights Under Law has long been one of the leaders in the fight for voting rights. As well as running the 866-OUR-VOTE hotline, they also get involved in legal issues before and after the election – for example, challenging Gwinnett County’s rejection of mailed-in ballots. Donate here.

The NAACP’s Legal Defense Fund has lawyers and volunteers on the ground in Texas, Georgia, Alabama, South Carolina, Louisiana, Missouri, and Florida. One high-profile case they’re involved in is working with students at Prairie View A&M who are suing Waller County in Texas. Donate here.

Spread the vote helps eligible voters get government-issued photo IDs, responding to one of the most severe forms of voter suppression, and has chapters in Georgia, Tennessee, Florida, Virginia and Texas. Donate here.

This isn’t by any means an exhaustive list. There are plenty of other organizations that do great work here and are also well worth supporting – look for ones in your local area or involved in races you especially care about. If there’s an organization you recommend (or are part of!), please share information and a link in the replies!