"If the racial wealth divide is left unaddressed and is not exacerbated further over the next eight years, median Black household wealth is on a path to hit zero by 2053."
from The Road to Zero Wealth report published by non-profits, Prosperity Now and Institute for Policy Studies
The technology industry has produced a significant amount of wealth in the past decade; producing majority of the top ten wealthiest Americans. Financial analysts predict that the sector will produce as many new millionaires moving forward as the financial industry has in the past. However, as the industry creates ballooning wealth for it's investors, entrepreneurs, and professionals -- communities of color are left behind only to exacerbate the existing racial wealth gap.
The data presented below from diversity reports shows the significant underrepresentation of blacks working in the technology industry:
- 1 percent of venture capitalists (investors) are black
- 1 percent of entrepreneurs who receive funding are black
- 7.4 percent of professionals employed in the high-tech industry are black (in comparison 14.3 percent in all private industries)
HBCUvc is a not-for-profit organization that trains and prepares students for careers in venture capital, entrepreneurship, and technology. Our Venture Capital Fellowship empowers students at Historically Black Colleges and Universities (HBCUs) to act as venture catalysts supporting their local entrepreneurs; and providing entrepreneurship education in underserved regions and communities. The unique hands-on learning opportunity allows students to learn from investors and entrepreneurs alike, while simultaneously increasing access to work opportunities in technology. We believe by increasing the number of Black and Latinx entrepreneurs and investors, we will create a more diverse and equitable technology ecosystem; increase employment opportunities for black and brown communities, and help to close the racial wealth divide. Join us in our mission by donating today.
1) Wealthy Elites’ Policy Preferences and Economic Inequality: The Case of Technology Entrepreneurs https://www.gsb.stanford.edu/faculty-research/working-papers/wealthy-elites-policy-preferences-economic-inequality-case
2) US Equal Employment Opportunity Commission - Report on diversity in high tech https://www.eeoc.gov/eeoc/statistics/reports/hightech/
3) A Data-Driven Look At Diversity In Venture Capital and Startups https://www.cbinsights.com/research/team-blog/venture-capital-diversity-data/
4) Poverty in America: Consequences for Individuals and the Economy http://www.gao.gov/products/GAO-07-343T