Aaron Fyke’s Post

This is a brilliant article from Johannes Lenhard on decision making, founder selection and bias in venture capitalism. He points out that these firms are kingmakers, and will pick the next tech billionaires. We underestimate the influence of this opaque world at our peril. “Under the traditional idea of “homo economicus”—a (financially) rational and optimizing agent—VCs within the tech ecosystem make decisions solely with the logic of maximizing profit. But focusing on VCs in their complexity as kingmakers shows just how insufficient that traditional explanation is. An analysis of VCs as assetizers who “simply” turn innovation into tangible (and sellable) financial assets to extract value is too fast a political-economic conclusion, particularly when talking to Sam and other real VCs.” “These kingmakers frequently make kings who look just like them: white men. Since we started tracking diversity metrics—both across VCs themselves and the founders they fund—the statistics are shocking. A recent NVCA/Deloitte survey concludes that fewer than 20 percent of American VC partners are female, with almost no gains when it comes to their responsibilities, such as investment decision-making, over the last years. The same survey found that just 4 percent of decision-makers among American VCs are Black (compared to 12.6 percent of the US population); statistics for Europe or the UK are similarly lagging in diversity across ethnicity and gender (which are often the only dimensions for which data is collected). Telling, however, is that the actual “firepower” that women in Europe control is even smaller: they manage only 9 percent of capital (5 percent in the UK, 6 percent in Nordic countries). Indicative numbers for Latin America and Canada tell a similar story. Another devastating indication of bias: in the US, 40 percent of VCs went to two universities, Stanford and Harvard.” I work with Johannes as a member of the advisory board at his amazing VentureESG organization and recommend you check it out!

quoted from Chris Harvey post below.... thanks for the rundown!! "California Requires Venture Capital Firms to Collect Diversity Data by March 1, 2025 Here's a quick summary of the new rules and 9 FAQs:

Venture capital firm Andreessen Horowitz is making a prominent foray into the political realm, pledging to support candidates whose views are aligned with their own technology-centric vision. Ben Horowitz, co-founder and General Partner, emphasized the importance of advancing technology for humanity's future, with a specific focus on candidates who embrace such values. The firm's $35 billion in assets under management signifies its commitment to promoting an optimistic technology-enabled future, while opposing candidates who seek to hinder America's technological progress. Andreessen Horowitz's decision to directly support political candidates for the first time is rooted in its belief that fostering technological advancement is essential for the future of humanity, a stance articulated by co-founder and General Partner Ben Horowitz. This venture capital firm, also known as A16Z, is aligned with technology startups and is particularly concerned with backing like-minded political candidates who prioritize the creation of an optimistic technology-enabled future. By extending financial support to candidates who share this vision, the firm aims to counteract potential obstacles to America's advanced technological future.