Are investors making meaningful change? Or just checking boxes?

Investors are scrambling to fund diverse founders. But these overtures can come across as inauthentic and tokenizing if they aren’t done thoughtfully. Over the past month, I’ve spoken with Black founders from across the food and beverage industry who have been fielding a rush of new introductions as sales are soaring. It’s a lot to take in, but the good news is that it doesn’t seem to be slowing down. 

“There is literal, tangible momentum happening here,” Golde CEO Trinity Mouzon Wofford told me recently for a piece out this morning. “Whether a certain percentage of those people bought my product because they just knew that they needed to buy a Black-owned brand, and our stuff was really cool, that's okay. Because it translated to real dollars that I now use to enact meaningful change. I can use those funds to hire more people.”

As I’ve been hearing from so many about how to make sure the industry doesn’t waste this moment, the hang-up tends to arise around what’s performative and what’s authentic. But it would be a shame if investors decide the risks of saying the wrong thing are too high and avoid taking the leap all together. That’s why Mouzon Wofford, who was named to last year’s 30 Under 30 Food and Drink list, spoke with me about clear language to use, and what to avoid at all costs. 

— Chloe Sorvino, Staff Writer, Forbes

In Brief

Golde founder Trinity Mouzon Wofford wants to see investors change how they approach founders of color.  “The difference between What feels performative and what feels genuine is big,” the 30 Under 30 founder says. 

In the past few weeks, sales have increased 10-fold, and she’s been introduced to ten new investors. Navigating these new relationships is not easy, but Mouzon Wofford shares how investors should handle these conversations, and what not to do. 

Acknowledge the awkwardness. "There are the investors that reached out in a way that felt bad. You're reaching out to me because you now realize that you need to include Black voices. On a personal level, I'm still processing. But it's better to own why you're reaching out. Try, ‘I'm reaching out to you because I saw you in XYZ publication about Black-owned businesses,’ or ‘because I've known about you guys for awhile and the movement to support more Black-owned businesses is really top of mind for me.’ It's okay to say it because it's a little weird to not say it."

Own It.  "If you disappear on someone, apologize. And say if you're open to it, I really do still want to connect. That would not have been problematic. Shit happens and people get busy. Sometimes we don't always behave as we would ideally like to professionally. Not owning it is where a problem arises. I've seen so many individuals and brands come out and say ‘we have a lot of work to do. These are all the things we're doing that have been ineffective or unintentionally racist.’ Listen, but fix it."

Don't just check a box. "We're a capitalist society. The founder does need the investor's money. But I really think that investors should think a little bit about the power that they hold and be a little bit more thoughtful about how they wield it. Can you think about why exactly you're suddenly reaching out to me now, with interest in that space? That behavior is actually just very par for the course with the investor-founder dynamic, which I think is very messed up. An investor can just do whatever they want. They can promise you the moon and then they can just disappear, because you're the one getting their money. And there's always going to be a piece of that. You can't get rid of that."

Do the work. "I've been disrespected by investors, white and Black. But when I do connect with an investment fund that has diversity or that specifically has a Black woman in a position of power, it really gives me a unique visibility into their values. I wouldn't turn down investment from a really great though not diverse team, but if the team is diverse, it helps point me in the direction that this is a thoughtful organization, that they're not necessarily bullies who are just trying to close deals and then drive founders."

Week In Review

The Odds Are Stacked Against Women Of Color Seeking Venture Fund. But this cookie startup broke the mold. Partake Foods just raised a follow-on round of seed funding, including by Grammy singer and songwriter H.E.R., and Jay-Z's Marcy Venture Partners.

Chinatown Wants Supporters, Not Saviors. Restaurants were hit hard in March when lockdown orders were put into place to prevent the spread of COVID-19. But restaurants in Chinatowns started losing business as early as January when news of coronavirus cases in China started to break through the periphery.

From The Frontlines Of The Hunger Crisis. A federal court denied a challenge to expand emergency food stamp benefits. Food stamp households with the lowest income levels will continue to see no additional benefits under the USDA’s "emergency allotment" provisions.

Coming Soon: Harris Family Beer. Tim White, JT Thomas, and Shaun Harris are about to make history with Pennsylvania’s first Black-owned brewery. 

Drink Responsibly This Summer. Here’s a fun, 6-foot ‘social distancing cooler’ that might help friends reconnect after months apart. 

Will Breakfast Ever Recover? The morning meal at fast-food chains nationwide has suffered the steepest transaction declines during the pandemic. + Report: Without federal aid, 85% of independent restaurants could permanently close. ++ This automated restaurant launched mid-pandemic. Is it the future? 

Augmented Reality And Real Food: Where Potential Meets Practice. As Covid-19 continues to impact public health and the economy, look to augmented reality and its “action at a distance” to keep food supply chains safe and efficient in months ahead.

Video

Watch my Live interview on the Forbes Instagram account with chef Paola Velez, cofounder of Bakers Against Racism, the social media movement that inspired thousands of bake sales last week in 200 cities globally and ended up raising more than $1.6 million for local organizations dedicated to ending racial injustice. 

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