Skip to main content

Wayan Brothers Come to Howard University...

I attended a HowU Innovate panel on how to raise money for your startup. The invitation encouraged people to "Come out and hear from some of the best minds in the field."


While not super well attended, I did find it interesting. There was much good information, but it seemed a less edgy, more conventional rehash of a talk I gave at Howard in April and of the talk I gave at the 2015 National Black MBA Association Washington DC Chapter (NBMBAA-DC) Entrepreneurship Expo. My talk, titled “Black People and Venture Capital” is on video below.


One person sent me the photo at left in response to a photo I tweeted out during the meeting. 


Now, that's a little harsh, but I understand why they sent it. Much of the advice was super conventional and rests on the fiction that Black people can actually get money from VC's.

At one point, the person on the panel who works for a VC referenced the small number of Black professionals he knows, implying that there were only a handful of Black people working for VC firms. This is false. According to our database, there are probably 250 Black men and women in the field now. The issue is not having one more Black person with a job at a VC firm. The issue is performance. One study found that "while less than 1 percent of venture-capital-backed company founders were African American and 12 percent were Asian, 83 percent had a racial composition that was entirely Caucasian."

Someone reminded me of the speech Lyndon Johnson gave at Howard 50 years ago: "Johnson spoke of a widening gulf between blacks and whites in unemployment, infant mortality and economic opportunity. 'It is not enough just to open the gates of opportunity. All our citizens must have the ability to walk through those gates,' he said.

VCs are widely regarded as one way to walk thru the gates of opportunity, but we know, given the statistics cited above, this is false. 

Comments

Popular posts from this blog

Crowdfunding heads to Georgetown

So first Fundrise raises $31Million for real estate crowdfunding.  Now Realty Mogul, a real estate crowdfunding platform, responds quickly with a rare opportunity to be a part of a $31.8 million project in the exclusive Georgetown neighborhood of Washington DC. #crowdfundrealestate Realty Mogul, along with   JOSS Realty Partners ( "JOSS" ) , is introducing the Georgetown Plaza to the crowdfunding world. This 150,097 square foot   Class B office building is  located on Wisconsin Avenue, Washington DC's major north-south artery and half a mile north of Georgetown University's main campus and Georgetown University Hospital. The primary objective of this investment crowdfunding campaign is to acquire, lease-up, and reposition the office building before reselling. In this crowdfunding transaction, Realty Mogul investors will hold a partnership equity stake in Realty Mogul 19, LLC.   Realty Mogul 19, LLC will subsequently invest in 2233 Wisconsin NY Member L

Crowdfunding Accounting 101 - Revenue Recognition in Crowdfunding

A start-up using crowd funding to create a product is different from a normal company. The start-up has cash inflows from donations but does not have a product, yet. In this situation, we recommend using completed-contract method to recognize revenue. Under this way of thinking, we assume the start-up is akin to a project or a long-term contract. The crowdfunding company will find it difficult to estimate the revenue from crowdfunders and, hence, the cost of rewards or perks. Under International Financial Reporting Standards (IFRS) and GAAP guidelines, if the firm cannot reliably measure the outcome of the project, revenue should be recognized based on contract costs. These costs should be expensed when incurred. Profit is recognized only at the completion of the project. In summary, for crowdfunding companies, revenue, expense, and profit are recognized only when the crowdfunded product is actually manufactured. 1 For example, assume that AAA Corp. wants to manufacture bicyc

Top 50 Crowdfunding Campaigns: Fifty Most Successful Crowdfunding Campaigns

  Top 50 Crowdfunding Campaigns: Fifty Most Successful Crowdfunding Campaigns Kindle Edition https://www.amazon.com/gp/product/B00RKK4NL0/ref=dbs_a_def_rwt_bibl_vppi_i0