In 2022, just 1% of all venture capital funding went to Black-founded companies—an estimated $2.3 billion of a total $215.9 billion. For women founders, the rate was only slightly higher, at 1.9%.

In an attempt to increase transparency around diversity and make the industry more equitable, California passed a law requiring VC firms to disclose diversity data about the companies they fund. But while this might nudge some companies to make their funding more diverse, some VC firms have been taking this approach for years. Among those VCs, there are mixed feelings on the law and its potential effects on innovation. There are also questions as to whether simply exposing the data goes far enough to address the disparities. READ MORE