While there has been an increasing effort from startups to diversify their workforces through several initiatives, there has been less action from VC firms to do the same. One Chicago organization that has been creating change in the industry recently announced a new program meant to increase diversity in Chicago’s VC community.
Chicago:Blend, a nonprofit committed to increasing diversity in Chicago’s VC firms and startups, announced on Tuesday that it will launch a bi-annual Chicago Venture Fellows program for aspiring venture capitalists from underrepresented communities.
“Companies and organizations that prioritize diversity, equity and inclusion recruit the best teams, build better products and produce stronger financial results. Chicago Venture Fellows is a product of our strategy to build a more diverse venture capital talent pipeline and welcome more people into the city’s tech community who might otherwise opt-out,” Joey Mak, executive director of Chicago:Blend, said in a statement.
The program lasts four months and will provide aspiring venture capitalists with a $1,000 stipend, networking opportunities and investment experience needed to succeed in Chicago’s VC world. To qualify for the program candidates must identify as a woman, nonbinary individual or Black, Indigenous and people of color (BIPOC). They must also have at least two years of work experience or are enrolled in graduate school.
The program is also looking for mentors and speakers who can provide the cohort with knowledge and insight into working as a venture capitalist.
This is not the first initiative from the organization. In 2021, the Chicago Venture Fellows program was piloted as part of the GET Cities incubator. Elle Ramel, director of GET Cities Chicago, said in a statement that the incubated program created an effective pathway and increased access to capital for BIPOC, women and nonbinary people. She said she hopes the program expands now that it is being run by Chicago:Blend.
Built In last caught up with Chicago:Blend in 2020 when the nonprofit announced it was launching virtual office hours so that minority founders could get funding advice and mentorship from venture capitalists.
That program was announced as the Covid-19 pandemic was taking off and employees transitioned to remote work. During this time, there was huge uncertainty about how venture funding for startups would be affected. Chicago:Blend realized that networking opportunities needed to secure funding would become limited, especially for early-stage founders from underrepresented groups, and went to work creating solutions.
“We anticipate that folks who are underrepresented in some way might have even less access to those networks than they ordinarily would and are going to be at even more of a disadvantage when it comes to raising funding for their companies,” Chicago:Blend founder Lindsay Knight told Built In back in April of 2020.
Chicago:Blend’s new Venture Fellows program is a solution to a long-standing diversity issue in many industries but is very prevalent in venture capitalism.
A 2021 survey by Chicago:Blend found that an overwhelming majority of Chicago’s VC workforce was white. According to the study, nearly 78 percent of the workforce was white, while only 10 percent was Asian, 6 percent was Black and 4 was Hispanic. The study also highlighted that over 82 percent of executive roles are held by white individuals.
