Thursday
August 15
2019

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.

Photo courtesy of rawpixel.

Source: Stanford News (link opens in a new window)

Categories
Investing
Tags
investors, psychology, venture capital