3 ways minority founders can increase access to capital

If you follow me on LinkedIn, you know that I'm truly obsessed with the overarching problem of "a lack of access to capital". It's a truly complex one deeply rooted in systemic racism, misogyny, classism, and unconscious bias. Yet, it intrigues the hell out of me. I'm talking, keeping-me-up-at-night status. Yeah... it's that deep.

Over the last few years of building ecosystems, I've compiled thoughts, observations, and data collected as a means of making a hint of sense of this problem.

Here are my thoughts:

A lack of access to capital can be broken down into 3 Barriers to Entry (what I'm coining as B2Es):

? B2E 1) Lack of know-how/knowledge: what makes a company "investable", "investment-ready", or "sexy enough to invest in"

? B2E 2) Lack of social capital/network: the sheer ability to be seen, recognized, or connected to people who could then connect us to investment

? B2E 3) Lack of resources: tangible products/opportunities that get founders to the next level

From what I've learned, resilience and persistence are key in the way we approach these B2Es. I took a survey and asked 150 Black Female Founders what they thought the lead component in a lack of access to capital was. One answer stuck out to me above the rest.

"It's definitely a lack of know-how. Our people are resilient and adapt to anything. Historically, we have be deprived of this knowledge. But once we understand and get access to it, we're resilient enough to figure it out on our own." ??

I always want to be a solution and a vehicle for providing others with a concrete solution.

As such, I thought it would at minimum be helpful to share 3 ways I feel we, as minority founders can start combatting these B2Es:

Why? Because once we know how, "we're resilient enough to figure it out on our own."

? B2E 1) Lack of know-how/knowledge

?? B2E 1) Google "what makes a start-up investment ready": Understand what first makes a start-up "investment-ready" or "investable" can increase our awareness around the layered and complex components that go into decision-making for investors. This also gives us insight into WHY an investor may not give you their time. Maybe our industry/sector doesn't fit into their investment strategy? Maybe our traction isn't high enough. What will help us best is to avoid making assumptions. Do your research first. 2 words: YouTube University.

? B2E 2) Lack of social capital/network

?? B2E 2) Connect with people on LinkedIn and/or Attend Local Meet-ups: LinkedIn has been an extremely useful tool in helping me connect with founders, operators, and investors alike. This platform gives us a ton of access to people worldwide. Read what other thought leaders are writing, slide into investors' DMs, and set up some virtual or in-person coffee dates. While I get super consumed in my work, I've also been forcing myself to attend more local tech meet-ups/events as a way of increasing my network. Just remember: No one person is unreachable--if you want it badly enough, you'll find a way to get in contact with them.

? B2E 3) Lack of resources: tangible products/opportunities that can help us get to the next level

?? B2E 3) Seek and you shall find: Now, more than ever, there are a TON of development and pitch programs (especially for minorities) in which we can participate as a way to increase our own access to resources and opportunities. BLCK VC has one. Lightship Capital has one. AMEX has one. The list goes on. They're out there--trust me. We just have to be disciplined enough to find them. Use solutions from B2Es #1 and #2 as a means of doing this.

I'm not saying that these solutions are the end-all be-all. But it's a start.

What I've learned from my own experiences is this: Avoid carrying the burden of external experiences and forces that are beyond our control. All we can control is ourselves.

The more we look at "a lack of access to capital" as this huge, overbearing, insurmountable problem, is the moment we throw in the towel and sell ourselves short.

The steps above are things we can do on a daily basis to help us decrease the inequality gap, if even just within ourselves.

For more information, email me at jeanine@lightship.capital. ???????