Galvanising intersectional investing: An update from GenderSmart
Over the past six months, GenderSmart has taken to heart our commitment to racial equity and diversity, examining both our own practices and our potential to influence others. We’ve been working to live up to our promise to listen to and amplify the voices of those with something to say, to give space to those who want to learn, to act in solidarity with those who are already fighting this battle, and to challenge one another to confront structural racism and abuse of privilege and power. We’re deep into this work, and we also acknowledge that we’re just at the start of the journey.
“If 15% of existing black businesses can hire at least one employee, it would result in $55B to the economy and 600K jobs”
In June 2020 we convened two ‘Courageous Conversations’, attended by 89 senior investment decision makers. These discussions took place in response to investor concerns about racial equity and inclusion in public and private markets, as well as the issues surrounding the disproportionate access to capital for expat versus local founders and fund managers—all of which were significantly heightened by the ongoing police brutality and injustice against Black people in the US and subsequent global demands for racial justice.
There is a clear need for an ongoing forum through which to further discuss these issues, speak truthfully about the work to be done, as well as to collaborate on the identification, development, and dissemination of helpful tools, approaches to data, and approaches to building pipelines that support both existing players and those wishing to join this growing movement. With that as our imperative, we launched GenderSmart’s Justice, Equity, Diversity, and Inclusion (JEDI) Initiative. Our aim is to provide investors and others with a unique forum through which to collaborate, enabling all actors to better make the case and crystallise their strategy and approach.
Why GenderSmart?
Our community felt that the progress made in the gender-smart investing arena could be directly applied to the JEDI Initiative, drawing upon existing gender-smart investing frameworks and infrastructure, which offer a useful roadmap. We recognise that there are many existing organisations already deep into this work, and that we have much to learn from them. We want to collaborate with these initiatives and amplify their work wherever possible, building on it where beneficial with our own networks and perspectives. And, while the events in the US have rightfully shaped recent conversations, we also see an opportunity to dive into injustice, privilege and power further afield.
GenderSmart has a proven ability to leverage our robust global network of investment decision-makers to play a leadership role in advancing the field, and as we once again convene the leaders in gender finance at the GenderSmart Investing Global Summit, with over 600 people expected to attend, we are ready to seize the opportunity to broadcast JEDI’s objectives to our far-reaching and influential community.
“61% of venture capitalists say that the Black Lives Matter movement has influenced their investment strategy”
Our Approach
Taking into consideration GenderSmart’s position as outlined above, with support from our Steering Committee of leaders already deep in this work and a working community of 45+ organisations, we have identified four areas for JEDI focus:
Amplifying key JEDI initiatives from organisations both within and outside this community, especially work undertaken by BIPOC groups. Of particular concern is innovative work around impact measurement tools, capacity building, and opportunities to highlight public policy and regulatory issues.
Catalyse commitments: The Steering Committee recognised the importance of tangible commitments and enabling the movement of capital, as well as tracking those assets.
Sharing tools and resources for practical action: GenderSmart can function as a place to collate key tools and resources such as initiatives, investing criteria, data approaches, and where to find deal flow and co-investors.
Creating space for courageous conversations: JEDI must be a trusted group in order to have the kinds of conversations we may have wanted to have but have previously held back on. JEDI should be a platform to explore those difficult issues at the core of racial equity investing.
We are committed to playing our role in bringing together gender and racial equity to move capital today, and to transform the investment industry long-term. If you’d like to be a part of this work, get in touch.
Further Reading
ILPA's Diversity in Action Initiative
Morgan Stanley's Venture Capital And Racial Equality report
Adasina’s Due Diligence 2.0 Commitment
Emerging Manager Monthly Diverse Manager Directory