How to get a job in VC: resources curated by Diversity VC

Over the last months since launching Diversity.VC in April 2016, the team and I have had numerous conversations about the challenges of breaking into the VC industry, particularly without a ‘traditional’ banking or consultancy background, or if in whatever way you are not cookie cutter.


Our mission with Diversity.VC is to make the industry more accessible to a broad range of people; not just those who know someone already working in it. So we’ve collected the resources below that our VC members have found useful for getting a job in Venture Capital. These cover: what the role involves, how to get a job, how to do the job and having the self-confidence to make a career change.

Background to Venture & the associate role

Breaking into Venture

Technical education for Venture

Being self-confident (especially when you don’t feel it)

Big thanks to Weston Reynolds for curating some of these resources . We would love to add to this list. If you found these useful, notice any errors or have any other resources to add to this list, please tweet us @diversityvc or email

*Diversity.VC has one simple aim: To increase diversity of thought in venture capital. We are doing this by:

  • Network: building a network of diverse VCs. If you are a VC who is interested in being part of these events or in promoting diversity of thought within VC, please get in touch and we will add you to our mailing list. We’ll be running events throughout the year.
  • Pathway: educating students and young professionals about the VC world & increasing transparency of recruitment and establish VC as a career path. If you’re responsible for hiring at a VC and are looking for more diverse candidates we can help. Please get in touch and we will add you to our mailing list.
  • Ecosystem: encouraging diverse entrepreneurs to start companies and give them access to funding.
  • Data: investigating diversity in the VC industry in order to educate those within and outside the industry.

Why students should [re]consider a career in investment

On Monday evening, Gabrielle, Charlotte and I gave a talk about a career in investing at Cambridge University, called ‘Investment Uncovered’. This was designed to advertise the profession to students but, more specifically, women. The three of us from different ends of the investment spectrum spoke about what we do, how we got into the industry and the positives of the job.

Whilst it was great to see so many enthusiastic male undergraduates, unfortunately only two women were there to hear it.

In many ways this is a good illustration of the issue we see when hiring people into the industry. The vast majority of the applicants we see are privately educated, white men.

This disparity is reflected in the data — just 10.5% of active fund managers globally are female and just 13% of VC Partners in the UK.

We are passionate about encouraging more diversity in the investment industry, because we think it’s right, but also because it’s been proven that greater diversity leads to better decision making. Diverse teams make better decisions 87% of the time versus 58% for all-male teams, according to a Cloverpop survey, so it is in the interests of our industry to get this right. We want to spread the message far and wide, so to that end, we have written a blog post below with the main points of advice which we’d encourage you to share as widely as possible.

Notes from talk at Corpus Christi, University of Cambridge, 6–11–17.



Charlotte, Gabrielle & Check

  • Charlotte Yonge, investment manager at Troy Asset Management; 7 years’ industry experience, manager on the Trojan Fund. Graduated from Cambridge with a degree in MML
  • Gabrielle fund manager with 27 years’ experience; runs the Global Equity Fund at Troy Asset Management, Graduated from University College Dublin with an MA in Economics.
  • Francesca (Check) Warner, Principal at Downing Ventures, 2 years in Venture Capital, Co-Founder of Diversity VC. Graduated from Cambridge with a degree in English Literature.

Why is investment attractive?

We are clearly biased, given that we all work in it, but we believe that investment is one of the most stimulating careers that you can have, for the following reasons:

  1. Objective measure of performance — investment is one of the few industries in which you are actually measured by, and rewarded for, your abilities. The performance of the fund that you run, or the investments you manage, is the true and indisputable measure of your worth, something that you rarely get in other industries.


Gabrielle’s slide showing the performance of her fund (in blue) vs benchmarks

2. Interest & variety — no two days are the same (literally), and you get to spend your time reading, learning, analysing business which is hugely engaging, tangible and rewarding.

3. A career, rather than a job — many jobs that you get out of university are stepping stones to other things, but with investment you can truly build a long-term career at one fund, or in one niche, without ever becoming bored or ceasing to learn.

4. A good work/ life balance — investment is largely a job which you can do from anywhere. Unlike with some client work, there’s no imperative to be physically in the office every day and theoretically, you can easily pack-up and work from home. It should lend itself to balancing the needs or a family more than many other jobs.

What the job involves

“Unlike the sterotype you might see in films with agressive traders shouting down the phones, the reality is more congenial. We spend much of our time reading annual reports, analysing the the latest earnings from companies in our sector, reseraching the buying habits of millenials” — Gabrielle, Troy

“In venture capital, I spend roughly a third of my time meeting new companies; a third working on analysing investment opportunities and a third working with the companies we’ve already invested in to guide them on boards and help them build their businesses. Each day is fascinating and filled with new knowledge and challenges. It’s a bit like having a bit of exposure to helping run several companies all at the same time.” — Check, Downing Ventures


Just some of the companies that Charlotte has spent time with in her time at Troy

“I’ve done a significant amount of travelling in my job as an investor, mainly to spend time with the companies that we have either invested in already, or are looking to invest in in the future. I’ve done everything from working on the shop floor at a Dr Pepper warehouse in Iowa, to touring the original Unilever workers campus in Port Sunlight and trying to understand the psychology of Burberry customers.” — Charlotte, Troy


In summary, it’s our belief that this is a job which could be extremely rewarding to wide range of people from a wide range of backgrounds, particularly since having an understanding of the end-customer gives you a competitive advantage in seeing opportunities where others don’t.

To that end, Troy Asset Management have a paid internship space available next year and would like to have applicants from as broad a base as possible. If you’d like to find out more, please email

If you are interested in a career at Downing LLP, please email your CV to If you want to find out more about careers in VC, take a look at the Diversity VC website and the blog post with resources on getting into the VC industry here, and sign up to the newsletter for more content and tips about breaking into VC.

If you run a university society that might be interested to hear from us to give a talk like this, please let us know, or if you have any other ideas about how to reach young people with this message, we’d love to hear about them in the comments below.

Thanks for reading.

Diversity VC and Gapsquare partner to shine a light on the Gender Pay Gap

We are delighted to share the news that Diversity VC has partnered with Gapsquare, a tool that allows companies to obtain instant insights, automate compliance, and visualise data relating to their their gender pay gap.

Founded by Zara Nanu, Gapsquare makes it easier for companies to comply with new government regulations brought in under the Equality Act 2010 (Gender Pay Gap Information) Regulations 2017. The technology makes it easier and quicker to report on relevant data, as well as providing narrative to support problematic data or anomalies. Additionally, it can make recommendations and identify solutions that help address the gender pay gap moving forward.

Gapsquare analyses and examines a company’s workforce dynamics in detail, and across different characteristics, such as by age, tenure or business unit. This enables companies to better understand the reasons behind the gap, and can offers insight into workforce, recruitment and retention trends.

‘We are on a mission to increase transparency in venture capital, and working with Gapsquare will be a very important part of that. Gapsquare’s technology allows companies of any size to quickly understand their gender pay gap, and put in place strategies that address it. It's an incredibly useful and much needed tool,  which our friends in VC should recommend to their portfolio companies!’ - Diversity VC CEO and co-founder, Francesca Warner  

The software has expanded its analysis so users can break down data by ethnicity, and will roll out analysis of other protected characteristics over the coming year. This allows companies to get a comprehensive insight into their equality and diversity practices within their organisation. This will have a direct impact on results. As a recent McKinsey study shows, diverse companies are 15% more likely to have financial returns above their respective national industry averages, and bring better returns and outperform on the stock market.

The World Economic Forum stated in November 2017 that it will take 217 years for the gender pay gap to close. The new UK reporting requirements only allows companies to look at half the picture. With Gapsquare, business can look at the whole story, providing a better understanding of the causes of the gender pay gap, so data-driven decisions can be made that will help narrow the gap quicker.

Screen Shot 2018-01-21 at 22.58.59.png



Operator, investor - A female perspective

Here is a list of resources to help better understand (1) the underrepresentation of women and (2) the challenges faced by women in the “tech industry” or “start-up ecosystem”; both on the operating side (female founders, co-founders, female workers) and on the financing side (female investors, VCs, angels, etc.).

A large part of these resources were found in the Mattermark newsletter.

Hope this helps - happy to connect, drop me a line

  1. FundersClub shares thoughts from some of the women whom FC has funded on what's challenged them in tech, and what and who has inspired them, along with their most cherished accomplishment in “Female Founders: A Growing Force

  2. Joanne Wilson, an angel investor, expands on why the tech industry needs to be the leaders in closing the gender gap — not the leaders in “bro-culture” in “How We Can Close the Gender Gap Before 2086

  3. Suzy Ryoo of Atom Factory offers some bold, everyday actions from multiple perspectives on how we can collectively move the gender gap needle in “"The only woman in the room" & How to Change That By 2186

  4. Claire Burke and Kate Dwyer of Female Founders Fund reports that as the total number of Series A deals in the U.S. declined in 2016, NYC-based female CEOs 2016 represented 17% of total Series A’s raised in “2016 Review of Female Founders Raising Institutional Capital

  5. Fred Wilson of Union Square Ventures recognizes the longer you wait to build a diverse team, the harder it gets, and highlights ways to start now in “Gender Diversity

  6. HBR, “We Recorded VCs’ Conversations and Analyzed How Differently They Talk About Female Entrepreneurs”

  7. Standard, “How Debbie Wosskow and Anna Jones are building a London powerhouse of fearless female entrepreneurs”

  8. Bloomberg, “How Women Won a Leading Role in China's Venture Capital Industry

  9. Jesse Genet of Lumi outlines five things she’s never said about the things nobody in the business community should say either in “Running a Business With Boobs: The Things I Never Say

  10. Sheila Lirio Marcelo of Care declares that our industry can #BeBoldForChange by shifting our attitudes to think about women in the workplace the way we think of them outside of it: as equals in “Benefits and Policies Won't Close the Gender Gap

  11. Christina Sass of Andela finds a simple solution to tech’s gender imbalance… hire more damn women in “How Do We Convert This Energy Into Lasting Change?

  12. Andressa Chiara of Concrete Solutions encourages men to advocate on women's behalf, by pointing out the injustices you see, or helping women regain their right to speak when they have no voice in “Women in Tech: A Message for Men

  13. Erin Rand of ServiceRocket reminds us to remember how fraught with anxiety and trepidation giving feedback can be the next time someone overcomes it to share their gift with you in “Feedback is a Gift… Make it Easier for People to Give it to You

  14. Nicole Hallberg shares her experience working for a boss that didn’t believe sexism was a problem at his company and what she did about it in “Working While Female

  15. Nicky Goulimis of Nova Credit describes meeting her cofounders, getting an MBA, being a female founder, and gives advice for other founders in “Founder Stories: Nicky Goulimis of Nova Credit

  16. Damien Hooper-Campbell of eBay offers a few exercises and tactical takeaways that every leader can try at her organization in “Humanizing Diversity and Inclusion

  17. Cadran Cowansage of Y Combinator surfaces a group of female engineers’ thoughts on what reasons may have prompted them to leave companies in the past, and what might motivate them to move out of a technical role in “How Can Managers Help Retain Technical Women on Their Team?

  18. Brittney Riley of Village Capital reveals research on the traits of founding teams with the goal of reducing bias in the investment process and ultimately making better decisions around what makes founders "strong" in “How Do Investors Evaluate Founding Teams?

  19. FT, “Women far under-represented at UK venture capital firms

  20. Diversity VC casts a light on the men and women working in U.K. venture capital in “Women in U.K. Venture Capital 2017

  21. Francesca Warner of Downing Ventures, “International Women's Day: Why tech VCs must reflect the diversity of the firms they fund”

  22. TechCrunch, “Why we need diverse founder and funding teams and how to find them

  23. “CB Insights: 48% of the startup world thinks meaningful change will only happen if women continue coming forward”

  24. NYT, “Women in Tech Speak Frankly on Culture of Harassment

  25. Stephanie Manning of Lerer Hippeau Ventures hopes her insights serve as useful, tactical suggestions to help men avoid being that guy at work in “From a Woman in VC to Men Everywhere: 5 Things You Can Do Now to Avoid Being That Guy

  26. Joanne Wilson, an angel investor, states that there should be repercussions for bad behavior and that the foundation for a power shift towards women in business has been built over the last ten years in “The Gig Is Up

  27. Elizabeth Yin of 500 Startups finds that speaking up about sexual harassment is hard and recognizes we must start a new chapter in “We Have a Real and Undeniable Problem Here in Silicon Valley with Sexual Harassment

  28. Brad Feld of Foundry Group vows, along with his partners, to be both more forceful and aggressive in their actions to stand up for the workplace ethics they believe in and have advocated for throughout their entire careers in “Our Zero Tolerance Policy On Sexual Harassment

  29. Tracy Lawrence of Chewse encourages founders, investors, men, women -- all of us -- to listen, learn, and engage in an honest dialogue to truly understand & fix the broken power dynamics in our industry in “Cracking Open the Gender Dialogue: What I Want the Men (and Women) of Tech to Know

  30. Julie Zhuo of Facebook writes her take on how to balance an ambitious career with a thriving life outside the office in “The mystery of work-life balance.”

  31. Aileen Lee of Cowboy Ventures shares very specific advice to female founders who are looking to raise capital.

  32. Elizabeth Kraus of MergeLane wants venture capitalists, LPs, and entrepreneurs to actually believe that gender diversity produces better returns vs. seeing it as a “charitable thing to do” in “Dear Venture Capital, Thanks for your offer to “protect” me. I really just want you to value me.

  33. Alli McKee of outlines the key points from the talks of Jessica Livingston of Y Combinator, Avni Patel Thompson of Poppy, Laura Behrens-Wu of Shippo, Aileen Lee of Cowboy Ventures, and Morgan DeBaun of Blavity, along with some of her favorite quotes in “Illustrations from the Female Founders Conference

  34. Erica Brescia of Bitnami and XFactor Ventures gives background details on joining XFactor Ventures (Danielle Morrill, CEO of Mattermark is an investment partner) where they’ll write $100k checks to female-founded startups out of their $3M fund in “Making Money While Doing Good

  35. Kara Egan of Emergence Capital offers five immediate ways to hire more women investors and invest in more women founders, but omits the broader LGBTQ perspective, in “VCs in the Land of the Redwoods Need to Stand Taller and Address Gender Inequality

  36. Bethany Marz Crystal of Union Square Ventures details “The Creation Story of Women in VC

  37. “If you think women in tech is just a pipeline problem, you haven’t been paying attention”

  38. “Recruiting diverse engineering candidates: What tech companies still get wrong”

  39. Amrit Richmond‏ of CMYK lists women improving design, manufacturing, shipping, CPG, food, apparel, tech, art, advertising, and more, in “Awesome Women Owned Businesses

  40. Laurel Woerner of Work-Bench offers lessons learned from launching a mentorship program for women in technology, in “The Alchemy of Diversity: Structuring Mentorship Programs for Success

  41. Rachel Kaplowitz of Honey reveals what it's really like to be a pregnant startup CEO on the eve of her second child's birth, in "Frozen Veggie Pizza Every Day... or the daily creative compromises of a pregnant startup CEO"

  42. Brian Harwitt of CoVenture describes how the community approach can save venture capital from its systemic gender power dynamic in “We Must Educate Everyone

  43. Chip Hazard of XFactor Ventures and Flybridge Capital breaks down the volume, quality, and breadth of opportunities that have come into XFactor two weeks after its launch, in “A Fortnight of Female Founders"

  44. Sophia Eng of InVision suggests a counter-manifesto to the #googlemanifesto in "Hear Us Roar: A Manifesto for Women and Minorities in Startup, Tech, and Business Communities"

  45. Cadran Cowansage of YC continues the “Ask A Female Engineer” series with “Thoughts on the Google Memo”

  46. Ellen Pao writes “This Is How Sexism Works in Silicon Valley”, an excerpt from her book, Reset, which comes out in September.

  47. Valerie Alexander of Speak Happiness says that a lack of specificity in accelerator transparency reports demonstrates that female founders may not be as well supported as is often claimed in “The Great “We Support Female Founders” Lie Continues…”

  48. “Closing the gender gap in venture capital deserves our immediate and sustained attention” by Melinda Gates

  49. “2 women entrepreneurs who invented a fake male cofounder say acting through him was 'like night and day’”

  50. Emily Cho of Helpful cites her internship experience as a model of how to make any workplace feel inclusive in “Stop pointing out there’s a female engineer in the room”

  51. “For Women Entrepreneurs or VCs, Doors Will Only Open If We Pound on Them, Loudly and Persistently”

  52. Annie Tsai of Edio provides an in-depth guide to help new moms balance life with returning to work, and for operators to provide a healthy work environment in “A Survival Guide to That Startup Mom Life

  53. “The Comprehensive Case for Investing More VC Money in Women-Led Startups”

  54. “AllBright: Making the UK the best place in the world for female founders

  55. “How do investors evaluate founding teams?”

  56. “Investing in Private Companies Achieves the Goals of Philanthropy and Impact with a Financial Return”, Plum Alley’s Deborah B. Jackson

  57. Linda Xie provides a list of direct suggestions (applicable in any conversation, not just those related to cryptocurrency) to ensure “Women in crypto” are included in the conversation.

  58. “Female leaders boost the bottom line”

  59. “Push for Gender Equality in Tech? Some Men Say It’s Gone Too Far

  60. The Economist, “Venture capitalists with daughters are more successful

  61. “BBC 100 Women”

  62. TechCrunch, “Announcing the 2017 update to the Crunchbase Women in Venture report

  63. Evening Standard, “18 women entrepreneurs that will inspire young girls to be their own boss”

  64. Bloomberg, “In Israel, ultra orthodox women emerge as tech entrepreneurs

  65. “TOP 50: Europe’s most influential women in the startup and venture capital space

  66. Fast Company, “Vive La France: More Female Entrepreneurs Are Moving To Paris For Funding And Support”

  67. “From World Champion to Women's Champion, Embracing Enoughness” with Lisa Wang

  68. Fred Wilson from Union Square Ventures talks about the book “Reset” by Ellen Pao

  69. “30+ diversity and inclusion activists and organisations I look up to” by Karolina Szczur

  70. Fast Company, ““The Industry Is Fundamentally Broken”: Women On Sexism In Silicon Valley”

  71. HBR, “Male and Female Entrepreneurs Get Asked Different Questions by VCs — and It Affects How Much Funding They Get” “

  72. Hunter Walk of Homebrew urges men to ask themselves “what do I do – or permit – that leaves women feeling unsafe, belittled or minimized?”, in "What I Learned Backing Female Founders: Every One Has a #MeToo Story"

  73. “My first year as a female founder”, Anna Jones, AllBright co-founder

  74. “10 Investors Who Are Authentically Committed To Funding Female Founders, Part 1“

  75. “Women in Healthcare 2017: How does our industry stack up?” A new report by Rock Health reveals that the majority (61%) of VC firms investing in digital health lack women partners. Further, the study found that women make up just 32.4% of executives and 11% of CEOs at the 100 largest hospitals in the US.

Becoming a Signal Above the Noise

Bradley Miles

I’ve always taken a bit of a non-traditional path. Before starting college, I founded a media startup for independent filmmakers with a close friend. We raised a (very) small amount of money but ended up shutting the business down after a year. I remember sitting across the table from a venture capitalist, she couldn’t have been more than few years older than me at the time. She astutely analyzed my now-defunct startup, suggesting ways we could have re-routed marketing efforts by looking closer at customer acquisition costs, sales cycles and customer lifetime value.

The conversation went on for some time. I planned on asking if she specialized in the space but the conversation quickly pivoted to transportation technology...and then healthcare, followed by drones. I was drawn to the way she navigated each conversation with such skill and depth. I  knew that if I ever wanted to have a successful business, I would need to see the market like her and really touch the entrepreneurial process of so many brilliant founders as she had.    

The way venture capitalists perceive companies has always impressed me and my aim was to work in the industry after starting college. Aside from a few coffee conversations, I knew next to nothing about venture capital and always wanted a straightforward and easy-to-read book on how to enter the industry. Prospective bankers and consultants had the luxury of these how-to guides so why not VCs? Last year, after a few weeks of searching and finding nothing, I decided to write my own.

#BreakIntoVC is the book I wish I had when I was trying to land a job in venture capital and the response so far has been tremendous. This is the type of mentality we need to adapt when pursuing a career in venture capital or any high growth industry for that matter. Partners at VC firms are trying to source great companies in order to provide great returns to their investors. In order to do this successfully, they need to source great people and often bias their search toward networks, clubs and institutions that have traditionally been difficult for people of color to access. Diverse candidates need to find ways to continually send a signal that they are the most valuable people in the room.  

We've all likely heard that less 1% of venture capital money goes to African-Americans and people of colour — a colleague of mine recently revealed an even more striking statistic: despite black women owning and operating 100,000 tech businesses in the US, only 13 have raised over $1m.

These realities impact people of color who are trying to work on the other side of the table as well. I didn't really have access to mentorship or any particularly strong connections when I was pursuing a career in VC, so I realized the first time investors heard my name it wouldn't have the network effects of my counterparts.  

I thought long and hard about this and decided to build a brief career as a research analyst. No one can dispute a well-written research report. I created an approach where I would get as granular as I could on a sector until I became an asset to the venture capital community. I realized my barriers to entry were not just my own, and this strategy could work well for others that didn't have connections in venture capital, particularly people of color. I give a thorough outline of how to analyze a company in chapters 8 and 9 of #BreakIntoVC.

In order for diverse candidates to stand out, they need to become what I call “a signal above the noise". This is to say they need to credibly display information about their ability more so than the average candidate in the tech sector. My background is in economics so a lot of my approach drew from Nobel Prize-winning economist Michael Spence and his work on job-market signalling. His 1973 paper — now somewhat novel — simply shows that employers search for signals from employees that indicate a high level of job performance. Spence uses education credentials as the main signal but we can extrapolate the model to include research as well. 

A research-driven approach

If you were to google my name and blockchain (“Bradley Miles blockchain”), the first page of results contains articles I’ve written on the space as well as quarterly and annual reports, The State of Blockchain, which summarizes key trends, data, and insights from the prior period.

Outside of being the author of #BreakIntoVC, if I were to have a conversation with an investor, the dialogue would naturally shift towards bitcoin and blockchain. I’d become "the blockchain guy”, which isn’t a bad thing as the latest report shows. The State of Blockchain gave me a personal brand and access to some of the most brilliant people in the industry, which also gives me access to new deals quicker than most VCs, a huge value-add in the industry.

I only mention these things because what I did in the bitcoin and blockchain space is highly replicable and value-accretive for anyone serious about pursuing a career in venture capital.  

A portfolio of research will continue to pay dividends in your career whether you pursue opportunities in VC or the larger tech ecosystem. Showcasing a body of work demonstrates exhaustive industry analysis and is your way to become a signal above the noise.

 You’re not only aiding yourself, but the venture capital industry in aggregate. Many studies indicate that diverse cohorts out-innovate and out-perform others as well as stimulate creative outcomes. Could the market be correct that only 13 of 100,000 black female-owned tech businesses (.013%) deserve venture capital? Of course not, there’s drastic inefficiency but also opportunity.  

My friends at Harlem Capital Partners and Troy and Marlon at Cross Culture Ventures are continuing to find businesses like Mayvenn and Blavity that are modernizing entire markets. There are multitudes of diverse entrepreneurs out there trying to do the same. Let’s find and support them by publishing a strong research-driven analysis of their business.    

Bradley Miles is the author of #BreakIntoVC, a simple and approachable guide to thinking like a venture capitalist. He is also an investor at Stripes Group, a leading late-stage venture capital firm that makes $10-150 million investments in Internet, Software, Healthcare IT and Branded Consumer Products businesses.

 Bradley’s  goal is to become one of the most accessible VCs in the world. He’s given lectures at Harvard and Wharton on #BreakIntoVC and this research-driven approach and he’s looking to explore more of the industry in Europe.

His book is available on Amazon now, and you can contact him on


Diversity Champions

We're not the only ones who are passionate about diversity.

Check out some of the fantastic initiatives below, from supporting flexible jobs to women in private equity. 

Why Venture Capital doesn’t work (as well as it could)

TLDR: in Venture Capital, diversity of thought is either missing or not ‘in play’ in 90% of venture firms. In order to improve fund and industry performance, as well as for the benefit of society as a whole, this must be urgently addressed.

Despite talk of inflated valuations and bubbles, it’s a great time to be a Venture Capital investor, especially in Europe. Accel and Octopus have just announced new funds, following hot on the heels of Local Globe, Mosaic and others. Even investment from China is coming. From London to Berlin, Stockholm to Lisbon, Tel-Aviv to Athens, there are many reasons to feel optimistic.

However, Venture Capital is still a sector with one of the most homogenous workforces in the world. Until VCs address this issue properly, they will make worse decisions, they’ll be less likely to find innovative ideas, they’ll have an imperfect understanding of new markets and they will struggle to hire the best talent.

VC’s problem with diversity

This is by no means the first article about the lack of diversity in VC and it definitely wont be the last. The subject of diversity in tech is already a well-worn (and some might suggest wearying) theme, so much so that it is the subject of frequent parody by the excellent FOMO Capital.

FOMO Capital’s pinned tweet about #diversity

However, there are good reasons why diversity in tech is still frequently spoken of, particularly with regards to diversity in Venture funds. Venture still lags behind so many other industries on diversity, tech companies included. A 2015 US Study (data here), that looked at 71 top firms, representing more than $160 billion in assets, found that at partner level, 77% were white and 91% were male. Only 2% were female and not white. A Fortune study from 2016 showed only 6% of VC professionals in larger US funds are women, and that has actually declined since 1999. It is still the case that if you’re from a different race, religion, sexual orientation, age or professional background from the industry norm of a white heterosexual middle-class male, you are going to find it more difficult to get a job in a VC.

There are many possible explanations for the lack of diversity in VC — hiring practices, feeder industries, life stage. However, there may be a more fundamental reason for why a lack of diversity persists in VC particularly. It may be because of a structural bias in the way that VCs make decisions. Most VCs practice “pattern matching”, where the investor searches for the same metrics, the same leadership qualities, the same network effects/ stickiness/ mission driven teams [/insert investment thesis here/] with which they have succeeded previously. While pattern matching is an important part of assessing dealflow and therefore can be useful, it can also lead to the VC surrounding themselves with similar companies, similar hires, similar investment committees and therefore similar thinking. This type of pattern matching is the enemy of innovation. It leads to group think and consensus around the median, the middle of the road— whether this be companies or people.

Remind you of anyone?

Will increasing diversity increase fund returns?

Data in VC mapping diversity to performance is hard to come by and where data on individual or fund performance does exist, for example the Midas List, it is hard to draw any conclusions because the composition of the list largely reflects that of the industry (with 5% of women in 2016 for example). A proven positive effect on fund performance is likely to prioritise the issue. So we desperately need to get a lot better at tracking and reporting data. The recently launched Project Include is a great place to start if you are at a fund and want to understand how to do this (or take a look at the real world example set by the team at Homebrew). Until we have access to this data it is impossible to say definitively that increasing diversity will increase returns. But the evidence from numerous studies across industries and stages that increasing diversity improves company and industry performancestrongly suggests it should.

What can you do today?

So apart from collecting the data on diversity statistics in your fund and portfolio, what else can you do today? To answer this question, we startedDiversity.VC*, which launched a month ago in partnership with Kea Consultants and supported by EVCN and Astia. We held a discussion with some of the best known VCs, from the most highly regarded funds in Europe, exploring the question of whose responsibility it was to encourage diversity of thought in VC firms. What came out most strongly from the discussion was the desire for change and for practical advice on how to bring this change about, and quickly. So in that spirit, below are the five simple things you can do to increase diversity and therefore, we suspect, the ultimate success of your fund:

1. Acknowledge the issue and act on it. The first step to addressing the diversity challenge in VC is to acknowledge that it exists. There are some people working in the industry who don’t. Once acknowledged, rather than hand-wringing, it is easier than you think to take the first step towards addressing it (even if it might feel small to you).

2. Work out whether you’re sending the right (or the wrong) signals.Take a step back to see whether your firm is sending unconscious messages that discourage applications from certain groups. These resources are an excellent place to start, and people like Brittany have written and spoken on this subject for the start-up community but her tips can be applied everywhere.

3. Take proactive steps when hiring. If you are looking for your next intern, associate, principal, venture partner or partner, take these steps (many of these are taken from GV’s excellent video on unconscious biases):

a. Clearly define what you are looking for (i.e by writing a job description with specific roles, responsibilities), even if just for yourself. For help in writing job descriptions that are not biased, see here

b. Look beyond your networks (whether they be school, university or social)

c. Conduct a formal interview process where candidates can be fairly compared

d. Acknowledge your unconscious biases (you can take a simple test here)

e. Hire by committee (as diverse a committee as possible). It sounds counter-intuitive but having multiple viewpoints and perspectives will reduce the influence of unconscious biases

4. Create a supportive environment for everyone. Consider your maternity and paternity leave policy, flexible working policies, investment committee protocols and office environment and consider whether these might be biased or skewed to any particular group.

5. Help the community. Whether you are in a position to offer your time as a mentor, suggesting speakers for conferences when you see a lack of diversity on panels (for more on this see here and here), or whether you want to help with Diversity.VC, the community will benefit from your engagement.

Who we are

*Diversity.VC has one simple aim: To increase diversity of thought in venture capital. Diversity of thought covers many types of diversity, educational, cultural, professional, gender, racial, sexuality, income and much more. We are doing this by:

  • Building a network of diverse VCs. If you are a VC who is interested in being part of these events or in promoting diversity of thought within VC, please get in touch with us and we will add you to our mailing list. We’ll be running events throughout the year.
  • Helping to connect VCs with more diverse applicants. If you’re responsible for hiring at a VC and are looking for more diverse candidates we can help.
  • Promoting the broader organisations across the technology world who have similar objectives to ours to our community. This includes collaborating on conducting a piece of research to map diversity of thought against fund performance. If you’re aware of any research or organisations that you think we should talk to about collaboration, or you are doing something related yourself, please let us know.

We’d love to hear from you with feedback and advice. Please pass on and if you want to talk, you can contact us on email at:, or contact me on Twitter.

Thanks to all those who have done studies in this area that we have cited here. Thanks also to everyone who has advised us on this journey or attended our event and our panellists.

Research and resources









Whose responsibility is it to encourage ‘diversity of thought’ in VC firms? And why?

Last month, Diversity.VC*, supported by Kea Consultants and the EVCN and held a panel discussion covering this question and many others with a group of 30 venture capitalists and a group of fantastic panellists from many parts of the VC industry.

The discussion was personal, free flowing, challenging at times and the room hummed with debate and ideas. Thank you to all those who came and especially the brilliant panellists. Chatham House rules apply so we can’t disclose who said what specifically. Nor can we give you a definitive set of answers and a rulebook on how to increase diversity of thought in VC firms. 

However, the discussion raised many thought provoking questions, from the philosophical to the practical, and we wanted to share these as widely as possible in the hope that they will promote introspection and consideration from everyone at every level of our industry, as they did on the night for us.

  1. What does diversity of thought really mean? How should we measure it? One thing that came up strongly in the discussion was the lack of educational diversity of thought in our industry. The majority of people we work with will have been educated in very similar ways at a handful of institutions, as that’s the shorthand that is used for ‘good’. Until we are around people who have been educated differently, who have a different cultural context, will we struggle to think differently?
  2. Is the structure of VC working against diversity of thought? 90% of the deals bought into VC partners are from associates, are partners training them to seek outliers and challenge the status quo? Or are partners encouraging pattern recognition, which hasn't exactly been proven to generate the best returns. How can we prove that diversity actually improves fund returns? 
  3. Should we be looking at the broader structure of VC? In Venture Capital there are three parties, the LP, the GP and the investee company. Even if the diversity agenda is top of mind amongst the GP, and the investee, do we need the format to change for LPs who provide the capital? Many LPs have it written into their constitutions that they cannot invest in first time funds (many of which are more progressive on the diversity of thought agenda), does this leave us in an impossible position with a sluggish trickle down rate of change? Three of the best performing funds worldwide (Sequoia, Benchmark and Accel) are far from diverse, so what does this tell us?
  4. Is diversity of thought a positive or negative thing for VC / company relationships? The business of VC is all about relationships, choosing whether to ‘get married’ to the partner or partners you choose to run your fund with, choosing companies that you will be working incredibly closely for the next 5–10 years. So we are programmed to look for harmony in these relationships and often harmony comes from not having cultural discord or structural reasons to disagree. However, the relationship between harmony and performance is an inverted U, so how do we reconcile harmony and performance? Some collision and conflict has been proven to generate better team performance. So how can we strike this balance? 
  5. What is more important — choosing the ‘best’ candidate or achieving diversity of thought? The question was raised about what the definition of ‘best’ was in this context? Is best based on ‘cultural fit’, being able to agree with the structure’? Having a certain number of twitter followers? (this criteria was apparently cited as a deciding factor in hiring of associates) Are we all chasing a definition of ‘best’ that is wrong-headed? How can we think differently about the idea of merit?
  6. How can the VC culture be changed to make it more inclusive? Does this have to come from the partners only? Should ‘culture workshops’ where the team gets together and writes up some words on a white board and then everyone forgets what they were four months later be banished? Is there anything that junior people coming into a homogeneous firm can do? Is it each of our responsibility to continue to educate people about what is acceptable and what is not, what is inclusive and what is not?

*Diversity.VC has one simple aim: To increase diversity of thought in venture capital. We are doing this by:

  • Building a network of diverse VCs. If you are a VC who is interested in being part of these events or in promoting diversity of thought within VC, please get in touch with us and we will add you to our mailing list. We’ll be running events throughout the year.
  • Helping to connect VCs with more diverse applicants. If you’re responsible for hiring at a VC and are looking for more diverse candidates we can help.
  • Promoting the broader organisations across the technology world who have similar objectives to ours to our community. This includes collaborating on conducting a piece of research to map diversity of thought against fund performance. If you’re aware of any research or organisations that you think we should talk to about collaboration, or you are doing something related yourself, please let us know.

We’d love to hear from you with feedback and advice. Please pass on and if you want to talk, you can contact us on email at:, or contact me on Twitter.