Venture Capital Funds Led by People of Color Face More Bias the Better They Perform, Stanford Researchers Find
By Melissa De Witte
When a black-led venture capital firm has an impressive track record, it encounters more bias from professional investors, according to new research by Stanford scholars.
In a new study led by Stanford psychologist Jennifer L. Eberhardt, in collaboration with the private investment firm Illumen Capital, researchers found that when venture capital funds are managed by a person of color with strong credentials, professional investors judge them more harshly than their white counterparts with identical credentials.
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