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WashU project seeks to boost venture capital flow to minority firms


Olin School of Business, Washington University
Alan Karchmer

Entrepreneurs often speak to Doug Villhard's students at Washington University's Olin Business School.

But Villhard, professor of practice in entrepreneurship, noticed it's been harder to find entrepreneurs who are women or minorities to speak.

He thinks that because little venture capital is going to firms founded by those groups. In 2021, startups founded by women attracted only 2% of funding given to venture-backed U.S. startups, according to research firm Pitchbook. Studies released earlier this year found that Black and Hispanic founders have snagged only 1% and 2.1%, respectively, of venture dollars.

“It’s just kind of staggering how low that is,” Villhard said.

The Olin Business School wants to help boost those figures. Its new project plans to produce a report detailing the minority funding gap and spelling out public policy recommendations for how more funding can be provided to minority founders.

"We did not just want to be a committee that just talks about the problem. We wanted to be something that offers real solutions," Villhard said.

The project is being funded through a $750,000 grant from the St. Louis-based Bellwether Foundation that was awarded to the Olin Business School. The grant established the Olin Brookings Commission, a collaboration of the Olin Business School and Washington, D.C.-based think tank Brookings Institution. It's pursuing yearly projects "to explore issues of global significance.” This marks the second project through the grant, following an initiative last year focused on the opioid crisis.

The project includes the involvement of several WashU faculty members, including Villhard; Daniel Elfenbein, professor of organization and strategy; Dedric Carter, professor of practice in entrepreneurship and vice chancellor for innovation and chief commercialization officer; and Gisele Marcus, professor of practice. Several Olin Business School students also are involved in the project.

Additionally, the Olin Brookings Commission has assembled a nine-person commission of business founders, investors and policy influencers who will help shape the report. The members of the commission include:

  • Christine Aylward, founder and managing partner at venture capital firm Magnetic Ventures
  • Charli Cooksey, founder and CEO of St. Louis nonprofit WEPOWER
  • Lori Coulter, co-founder and CEO of St. Louis clothing startup Summersalt
  • Morgan DeBaun, founder and CEO of technology company Blavity and advisory board member for the Black Economic Alliance
  • Gaurav Garg, founding partner of Wing Venture Capital
  • Lisa Morales-Hellebo, co-founder and general partner at REFASHIOND Ventures
  • Martin Hunt, CEO of Swanlaab USA Ventures
  • Andre Perry, senior fellow at Brookings Institution
  • Akeem Shannon, CEO and founder of St. Louis phone accessory startup Flipstik

As it compiles its report, the Olin Business Commission plans to host an academic conference focused on the topic in November at the Brookings Institution in Washington, D.C. It will hold a working paper session in February 2023 in San Francisco. It plans to release its report in April 2023.


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