The high-flying IPOs of startups from Airbnb to Snowflake have gotten a lot of attention. And while the wage gap is well-documented [for every dollar the average white man earns, women earn $0.81, the average black woman earns $0.61, and the average Latino man earns $0.86], and the challenges in fundraising for women and people of color have started getting noticed [here or here or here], one area that hasn’t gotten much attention is who benefits from the venture capital firms behind high-growth companies. With only 1.1% of all private funds managed by women or people of color, not surprisingly, the underlying investors of those firms also reflect the lack of diversity. This tight network means it’s challenging to even have the opportunity to invest until the company is public.
This fund has been created to bring diversity to the cap tables of companies that are IPO bound. By taking an investment from DCF, these companies increase representation of women and PoC leaders in their ownership structure and can tap into DCF’s network to help diversify their boards and executive teams. There are currently no other funds of which we are aware that exist to bring diverse equity and more equitable ownership into the capitalization table (shareholder’s cap table) of companies at this stage and scale. We think of Acrew DCF as driving triple bottom line impact by:
- improving company performance
- providing strong investor returns
- and expanding the investable assets for diverse angel investors to fund tomorrow’s companies
Acrew Capital was founded with a core value of diversity of perspective; today 63% of the Acrew investing team are underrepresented minorities and 88% are women or PoC. And diversity in our team has driven diversity in our portfolio — 58% of Acrew companies have a woman or person of color as the founder. It’s well-documented that diversity in leadership drives improved performance. Collectively, the Acrew investing team’s track record includes 10 IPOs, over 25 successful acquisitions and over 150 rounds of follow-on capital raises, resulting in over $100 billion in market value created and over $2B in returns to our investors. The Acrew portfolio includes security leaders such as Cato Networks and Exabeam, fintech stand-outs such as Chime, Divvy, Finix, and Pie Insurance, SaaS companies such as Gusto, and consumer marketplaces like HotelTonight/Airbnb and the RealReal.
The Acrew team is proud to announce the additions of several team members and advisers to help launch DCF. Sukhinder Singh Cassidy, a long-time friend, investor, and board member, joins us as a founding Venture Partner. Sukhinder founded the Boardlist over five years ago to increase female representation on boards and has expanded to represent a broad base of over 7,000 board-ready women and people of color. Also joining the Acrew DCF team as an Executive in Residence will be long-time Silicon Valley executive and board member Kerry Cooper. Further, the Acrew Diverse Capital Fund welcomes Charles Hudson, of Precursor Ventures, and SVB Capital President John China as Founding Strategic Advisors.
Want to learn more? We are excited to create a broad network of new investors and community leaders. Please visit https://acrewcapital.com/dcf/ and get in touch.