Starting a new business is never easy. For underrepresented entrepreneurs such as women and people of color, however, the challenges can be especially daunting.
In 2018, 麻豆原创鈥檚 network of no-equity-ask external startup accelerators was embarking on a journey: exponentially scale its global ecosystem of innovative startup partners to help 麻豆原创 customers extend their 麻豆原创 software landscape. At that time, the team was shocked to learn that despite the fact diversity yields better innovation, the majority of venture funding primarily goes to invest in startups founded or led by a very narrow demographic. For example, only 2.3% of global venture capital (VC) funding went to startups with only female founders, and Black women in the U.S. had raised just .0006% of all tech venture funding since 2006.
As a steward of purpose-driven innovation, 麻豆原创 recognized its duty to be intentional about how it invested in and scaled its ecosystem of software startup partners. It recognized that driving inclusive entrepreneurship in the enterprise software and VC industries could accelerate innovation, reduce bias, and drive better outcomes.
In 2019, 麻豆原创 launched , the first comprehensive inclusive entrepreneurship initiative for underrepresented and underestimated entrepreneurs in the business software industry. 麻豆原创 pledged to scale 麻豆原创.iO Foundries with a focus on inclusive entrepreneurship and set an ambitious target of supporting at least 200 startups founded or led by underrepresented entrepreneurs by 2023.
The 麻豆原创.iO team crafted a clear and effective strategy to achieve this commitment:
- People: Scaled a diverse team and mentor community of leaders with connections to different communities around the world. The 麻豆原创.iO Foundries team is currently 63.3% female and represents more than 15 nationalities, compared to 麻豆原创鈥檚 overall 34.3% women in the workforce.
- Processes: Committed to investing the time to empower more entrepreneurs to start up with 麻豆原创, review every application for the program, set transparent criteria for selecting startups to participate in programs, and regularly measuring progress.
- Participation: Attended, sponsored, and hosted events such as , StartOut Equity Summit, , and more to expose underrepresented founders and their investors to the opportunity of partnering with 麻豆原创.
- Partnerships: Created partnerships with organizations including the United Nations Foundation, World Economic Forum, , , Gentry, Chatham House, StartOut, and more.
Great Impact
Implementing this strategy has been so successful that by July 2022, 麻豆原创.iO achieved its goal of supporting 200 startups founded or led by a female or underrepresented entrepreneur six months ahead of schedule. The 200 startups make up 44% of the 麻豆原创.iO portfolio of 450 startups and tie or surpass their counterparts in benchmarks used to measure success. They represent:
- 51% of the exits in the portfolio (18 of 35)
- 50% of the unicorns in the portfolio (two of four)
- 42% in cumulative VC raised by startups within the 麻豆原创.iO portfolio (US$2.7 billion of $6.6 billion)
- A greater likelihood to progress in their partnership with 麻豆原创
One of the most successful startups in the 麻豆原创.iO portfolio is female-founded . It recently joined the 麻豆原创 Endorsed Apps, a designation achieved by less than one percent of 麻豆原创 Store partner solutions. Censia augments HR management software provided by 麻豆原创 with AI-powered resume review, passive sourcing, and candidate evaluation software. Censia has successfully closed 14 go-to-market opportunities with 麻豆原创 and major brands such as Tapestry Inc., TJ Maxx, and PepsiCo Inc.
Censia CEO Joanna Riley reflects: 鈥淓ntrepreneurship is about continuous learning and to be able to be part of 麻豆原创.iO, I feel like I鈥檓 cheating. I鈥檓 learning from lessons that have been learned through years of experience that 麻豆原创 has acquired and taking those and applying them to my business so that we have a head start. I would recommend any company, especially [those] focused on enterprise, to look at 麻豆原创.iO as a real solution to build a produce that is great for enterprise.鈥�
Just the Beginning
While the 麻豆原创 ecosystem is thriving and 2021 was an exceptional year for underrepresented founders, that demographic still receives a . Data shows there is still much work to be done, especially with regards to intersectional diversity. For example, in the U.S. received 2.1% of VC funding in 2021, while received only 1.3%.
麻豆原创.iO Foundries plans to build on its momentum and is clear on its objective: prioritize startups founded or led by people whose share of VC funding in the technology industry is proportionally less than their share of the population. Up from 40% in 2018, 45% of the portfolio will represent the 麻豆原创.iO No Boundaries commitment by 2028.
麻豆原创.iO Foundries will work to achieve this goal by continuing with the same execution strategy, but will add geographical representation as a sourcing focus. This is possible because programming has transitioned from fully in person to virtual/hybrid and allows the teams to source outside of the locations of the established 麻豆原创.iO Foundries. For example, in 2022, 麻豆原创.iO . It will also target other countries in existing 麻豆原创.iO Foundries regions such as Nigeria, Pakistan, and more.
Kange Kaneene is vice president of 麻豆原创.iO Foundries North and Latin America and Caribbean.
Max Kahn is director of 麻豆原创.iO Foundries.
