CherylDorsey,EchoingGreenJeffBradach,TheBridgespanGroupDonGips,SkollFoundation

BREAKINGDOWNBARRIERSTOCAPITAL: OVERCOMINGRACIALBIASINFUNDING

Technologynormsforthissession

Pleasemute youraudio

Chatquestionsatanytime

Feelfreetoturnonyourvideo

Introducingthehosts

CherylDorseyPresident

EchoingGreen

JeffBradachManagingPartner&Co-founder

TheBridgespanGroup

Objectivesfortheconversation

Sharethemotivationandinsightsfromour

forthcomingresearchonrace-based“barrierstocapital”– buildingonconversationsatSkollWorldForumand

elsewhere

Understandyourquestionsand

reflections ontheresearchandpotential

actionsteps

Offerourlatestthinkingonwhatthefundingcommunitycandotoremovethosebarriers,includingworkunder

wayatourownorganizations

Leadersofcolorandracialequitypractitionershavebeenpointingoutrace-basedbarrierstocapitalfordecades

ThereasonyouseeBlackpeoplestrugglingtoraisemoney,buildacompany,orstartamovement,isnotbecausetheyaren’tgoodatit.It’scertainlynotbecausetheyaren’tascapableaspeoplewhohavetheresources.It’sbecauseofthewaythisallstartedout.TheU.S.wasfoundedonandcontinuestooperatewiththeexploitationofBlacklabor.Ifyouunderstandthat,you’llcometothisworkmorehumbleasafunder.”BrandonAnderson,FounderofRaheem

“

Weheardmultiplereasonswhyfundershaven’tyetaddressedthesebarriers,sowearecollaboratingtospurgreaterprogress

Fundersthinkfundingdisparitiesareduetofactorsotherthanrace

Fundersdon’tseetheimportanceofbarrierstocapitalasamajorimpedimenttoimpact

Fundersaren’tsurehowtotakeactionbeyondcollectinganddisaggregatingdata

Fundersaren’tbeingreachedbytheexistingmessengers

TheproblemFundersaren’ttakingactionduetolackof:

OurroleWe’velaunchedajointcampaignto:

Leverageourorganizations’distinctrelationshipswithfunders,andbuilduponCheryl’sexperienceasaspeakerandadvocateonthisissue

Conductdata-drivenanalysistobetterunderstandthemagnitudeofrace-baseddisparities,drawingonEchoingGreen’sdata

Clarifythedriversofrace-basedbarrierstocapital,advocateforpotentialactionsteps,andincorporatefindingsintoourownwork

Sharedataandstories, centeringthevoicesofleadersofcolorandequitypractitioners,tohighlighttheimplicationsofrace-baseddisparities

Awareness:

Understanding:

Motivation:

Clearsteps:

Weusedquantitativemethodstobetterunderstandthemagnitudeofrace-basedbarrierstocapital

Financialdatafrom160+U.S.socialventureswhowereselectedassemifinalists,finalists,orfellowsfromEchoingGreen’sapplicantpool,averagingdatafromthethreeyearsfollowingtheirapplication

Keyfindings

RevenuesoftheBlack-ledorganizationsare

24%smallerthantherevenuesoftheirwhite-ledcounterparts

Thispatternholdsforleadersdoingsimilar typesofwork andwiththe same educationlevels,andisevenmorepronouncedforwomenofcolor

UnrestrictednetassetsoftheBlack-ledorganizationsare

76%smallerthantheirwhite-ledcounterparts

Quantitativedata

Interviewselevatedfourkeybarrierstocapitalfacedbyleadersofcolor

Funderslackunderstandingofculturallyrelevant

approaches

Interpersonalbiasmanifestsas

mistrustandmicro-aggressions

Leadershaveinequitableaccesstosocialnetworksinphilanthropy

Issuesresurfaceingrantrenewalprocesses(e.g.,

mistrust)

Gettingconnected

Buildingrapport

Securingsupportfororganization

Sustainingtherelationship

Sustainablefunding

Leadersofcolor

Theexperiencesofbiasthatleadersofcolorfacetakebothapersonalandprofessionaltoll

• Decreasedtimeforotherorganizationalpriorities

• Decreasedconfidenceinleadershipability

Personal

Professional

“Itdoestakeatollemotionally…I’velearnedthat ifyouwanttomakeprogressthenyouhavetofindwaystotakecareofyourself – throughprayer,throughhavingavision,throughbeinginrelationship.WhenI’mcompromisingin[philanthropicspaces],Itrytobalancethatwithselfcare”

AnonymousNativeLeader

“TheheatthatIfelt[frommyboardandfunders]mademenotthebestchiefexecutiveinyearonefor[mycolleagues]…Iwasveryfocusedexternally.‘Let’smakesuretheworldsaysnothingaboutthevulnerabilities.Let’smakesuretheyfeelconfident’…ThatwasprobablyattheconsequenceofmyinternalteamnotfeelingIwasprovidingthedirectionthatIneededtoprovide”

AnonymousAsianLeader

• Fatigue

• Emotionalhardship

• Pressuretocompromiseonvalues

Bias

PowerActivelyshare,cede,andbuildpower(valuingproximityandensuringaccountabilityfordoingso),whichmayinvolveworkingtorepairharm

Deliberatelyandtransparentlycounterinterpersonalandsystemicbiases

Ourresearchtodateshowsthatdismantlingthesebarriersrequiresfunderstoaddressthreeunderlyingdrivers

RiskRedefineriskbyrevisitingassumptionsaboutwhatisnecessarytoachievesocialimpact (e.g.,seekopportunitiestobuildcapacityratherthanpunishingunder-investment)

JeffBradachManagingPartner&Co-founder,TheBridgespanGroup

DonGipsCEO,SkollFoundation

CherylDorseyPresident,Echoing

Green

Reflectionsonourownpractice

Questions?(UseZoomchatbox)