USA TODAY International Edition
Woodard becomes first black partner at 500 Startups
Appointment sends diversity message to Silicon Valley
Monique Woodard has joined 500 Startups as its first African- American venture partner to increase the firm’s investments in black and Latino tech entrepreneurs, who have historically received a tiny fraction of U. S. venture funding.
The appointment of a black investor at the start- up accelerator and venture firm “sends a huge signal that black investors are needed and that we should have a seat at the table,” Woodard told USA TODAY. Woodard is executive director of Black Founders, a national network of African- American tech entrepreneurs that she co- founded.
“We have to diversify who’s going out there and finding companies and who’s writing the checks,” she said. “That is incredibly important. It’s hard to find black and Latino founders if you don’t have black and Latino investors on your staff.”
For decades Silicon Valley has wrestled with its stark lack of racial diversity. Nowhere is that more evident than in the venture capital industry, which is dominated by white men who, by and large, fund very few start- ups founded by underrepresented minorities and women. A report in 2010 by CB Insights found fewer than 1% of venture capitalbacked Internet companies were founded by African Americans.
500 Start- ups, co- founded by Dave McClure and Christine Tsai, wants to shake that up. 500 Startups has $ 200 million in assets under management. Its team of 100 manage seed- stage investments in more than 1,500 companies in 20 countries including three unicorn start- ups: GrabTaxi, Twilio and Credit Karma.
Even before Woodard’s appointment, the investing team at 500 Startups was more diverse than most venture firms. Eleven of 33 partners on the investment team are women. In the last four years, 500 Startups has backed more than 400 female- led companies. 500 Startups says it does not have figures on the racial composition of its team or on the number of black or Latino- led start- ups it has invested in.
“Monique is super talented, and the fact that she does have a strong passion for diversity and inclusion with respect to the entrepreneurial and venture capital community, that just aligns with what we do,” Tsai said. 500 Startups says it has made investments in a number of companies with minority founders, including Walker & Co., Tristan Walker’s company which makes the Bevel shaving system, and Mayvenn, which helps beauticians sell hair extensions and other products.