Bernard H. Coleman, Esq.’s Post

Diversity in senior positions may lead to less diversity in their decision making, not more — at least this was found to be the case with VCs. Gender and racial bias and power dynamics can exert pressure on diverse leadership to move away from diversity in their business decisions, not towards it. This paradox may surprise many, but we must go deeper to address the challenges facing underrepresented founders and their lack of capital access. “When women don’t support women What we found surprised us: Firms whose decision-making groups included more female senior venture capitalists offered less funding to woman-led businesses. Every additional senior female venture capitalist in a firm’s decision-making group was linked to a 0.46% decline in the proportion of newly funded woman-led businesses in its investment portfolio. Since the average funding round in our sample was $5.4 million, that suggests adding one extra female senior venture capitalist into a VC decision-making group translates into woman-led businesses receiving about $25,000 less funding.” #diversity #venturecapital #vc #business #startups #entrepreneur

MEI versus DEI - the debate continues but the numbers don’t lie. As DEI initiatives have fallen out of favor, the opportunities for women and other underrepresented groups have declined too — sometimes dramatically so. DEI initiatives appear to be losing ground every day, and diverse employee candidates and diverse founders are losing too. How far will we fall? The farther we fall the more we all lose — whether we realize it or not. “Yet, for an industry that prides itself on being data-driven, Silicon Valley cannot let the idea of a meritocracy go — despite all the data and research showing how such thinking is just a belief system and one that can lead to biased outcomes. The idea of going out and hiring “the best person for the job” without taking into account any human sociology is how pattern-matching occurs — teams and companies of people who are alike, when the research has long shown that more diverse teams perform better. Moreover, it has only raised suspicions about who the Valley considers excellent and why.” #dei #mei #business #diversity #entrepreneur

Pinky Cole has a plan to make money, make history and make a difference, and her plan is working very well. Kudos to Pinky Cole on her success and let’s wish her even more! “Cole said her business model has worked in the company’s favor since the beginning, and despite the restaurant’s success, she always had a plan in place to allow herself and others in the space to thrive. “I always said if, for whatever reason, Slutty Vegan does not work out, I own the real estate, so now we raise the value of the buildings that we own, and it taps into what the overall company is worth,” she shared during the podcast. Next up, Cole plans to continue expanding the Slutty Vegan universe beyond the food industry. Currently, the company has products like clothes and shoes, but Founder and CEO Cole wants to tap into other items, such as hair products, soon.” #business #pinkycole #entrepreneur #blackenterprise #sluttyvegan

Is private equity pillaging our small businesses and extracting wealth from the many in our communities into the hands of a few? This is a cautionary tale of a small business owner who was victimized by a private equity takeover that turned her life upside down. #business #privateequity #smallbusiness #entrepreneur

An ugly secret in venture capital is the rise in LP defaults, and funds and startups are definitely feeling the pain. Many LPs have decided to not throw good money after bad, so they are leaving VC funds hanging with unfulfilled commitments. This is not a good look for the industry, but it’s a reality we have to face. “Ledterman won't name name's but using Pitchbook data and her own market research, she estimates 3,200 funds have gone dormant over the past 14 months. A BI analysis found 8,538 VCs stopped investing in the last two years, leading to what some VCs have warned will be a "Zombie reckoning" in 2024. Most of those firms are simply not able to raise a new fund, but Ledterman says she knows of 740 VCs who have LPs in default because of high interest rates that make risky venture investments less attractive, a frozen IPO market, and an excess of first-time venture funds formed during the boom years that have underperformed.” #vc #venturecapital #business #entrepreneur

A Big Change That Will Harm US Small Businesses and Families As a business attorney advising startups and small businesses, I want to share some significant news that will impact small business owners and families across the U.S. in ways we've never seen before. Saudi Arabia, a major producer of the world's oil, has decided to stop using US dollars for selling their oil. Here’s what it means in simple terms: 1. Changes in Gas Prices: When countries like Saudi Arabia change how they sell oil, it can make the price of gas go up and down more than usual. This could mean higher prices at the gas station, affecting the cost of driving and transporting goods. Small businesses relying on transportation might have to spend more on fuel, leading to higher prices for the things we buy. 2. Higher Prices for Things We Buy: If oil prices go up, it can make everything more expensive because oil is used in many products and services. This means we might see higher prices at stores for everyday items, and our utility bills could increase. 3. Money Value Changes: The value of the US dollar might change more often because it’s not being used as much for buying and selling oil. This can make it tricky for businesses that buy and sell things in other countries because the value of money they use could go up or down quickly. 4. New Ways to Trade: Other countries might start using different currencies to trade, which could change how businesses buy and sell things worldwide. Small businesses that sell products overseas might have to adjust to these changes. 5. Getting Loans: If the US dollar’s value changes a lot, it might become harder for small businesses to get loans or credit. This could make it more difficult for them to grow and invest in their businesses. In short, there are major challenges ahead as the demand for U.S. dollars drops around the world, which will decrease their value and our purchasing power. We will be paying a heavy price in more ways than one for many years to come, so we will all do well to get ready. #SmallBusiness #EconomicImpact #Petrodollar #USEconomy #Entrepreneurship #GlobalTrade #EnergySector https://lnkd.in/eSVU73_f

Great news for women-owned businesses! Spread the word. “Today, Administrator Isabel Casillas Guzman, head of the U.S. Small Business Administration (SBA) and the voice in President Biden’s Cabinet for America’s more than 33 million small businesses, announced four funding opportunities for Women’s Business Centers (WBCs) totaling $30 million. This includes funding to support further expansion of the WBC network, the opening of a WBC in the U.S. Virgin Islands, and first-time specialized funding for WBCs that specialize in federal contracting and child care businesses.” #womenownedbusiness #sba #smallbusinessadministration #business #smallbusiness #womenfounders

The recent 11th Circuit decision in American Alliance for Equal Rights v. Fearless Fund offers crucial insights for organizations implementing Diversity, Equity, and Inclusion (DEI) initiatives. The court ruled that the Fearless Strivers Grant Contest, limited to Black women, likely violated 42 U.S.C. § 1981, which prohibits racial discrimination in contracts. As an attorney experienced in corporate governance and compliance, here are some key lessons: Balance DEI Goals with Legal Requirements: While DEI initiatives are deemed essential for fostering diversity and addressing historical inequities, they must be designed to avoid creating absolute barriers based on race or other protected characteristics. Instead, programs can focus on broader eligibility criteria that align with legal standards while promoting inclusivity. For example, DEI grant programs can be structured in a way as to not create a contract with grant recipients when targeting a specific racial group.  Alternatively, if the grant creates a contractual relationship based on its terms and conditions for participation, the grant may be marketed towards a certain racial group; however, the grant may not exclude participation of anyone based on race. First Amendment Considerations: The court distinguished between advocacy for racial equality and the act of racial discrimination itself, which is not protected by the First Amendment.  In the Fearless Fund case, the court found that the Fund's contest constituted a contractual relationship and was thus subject to 42 U.S.C. § 1981, which prohibits racial discrimination in contracts. The court ruled that the contest's exclusionary criteria were not protected expressive conduct but rather discriminatory practices. Organizations must be careful not to conflate advocacy and racially discriminatory conduct in their DEI efforts. While promoting diversity is laudable, the methods employed must not infringe upon the rights of others based on their race. Conclusion: As we plan ahead, we must elevate the fight for diversity, equity and inclusion with more innovative strategies that can hold up under legal scrutiny, especially 42 U.S.C. § 1981. Supporters of diversity, equity and inclusion principles will adjust and continue the fight to create a society that encourages and supports diversity, equity and inclusion efforts at all levels. For all of those who are feeling disappointed and defeated, be encouraged as the fight is not over. Fearless Fund and those who share its mission will regroup and come back stronger than ever in the fight for diversity, equity and inclusion. Fearless Fund, we stand with you and encourage you to remain fearless in the fight to economically empower Black women founders as you have and undoubtedly will continue. Arian and her team at Fearless Fund may lose some battles along the way, but I guarantee you that they will not lose the war. #DEI #business #FearlessFund #ariansimone

The numbers are not adding up for ESG company investors, and they are pulling out for greener pastures. Profits rule, no matter what political movement comes and goes. Like DEI, ESG has become a tainted term politically, and it is in need of a re-brand and real world profits to get investors excited again about it. Has its time passed? Or will ESG make a comeback? Time will tell. “Global investors are turning their backs on sustainability-focused stock funds, as poor performance, scandals and attacks from US Republicans hit enthusiasm for a much-hyped sector that has pulled in trillions of dollars of assets. Clients have withdrawn a net $40bn from environmental, social and governance (ESG) equity funds this year, according to research from Barclays, the first year that flows have trended negative. Redemptions, which include a record monthly net outflow of about $14bn in April, have been widespread across all main regions.” #esg #dei #business #venturecapital #privateequity #blackrock