Founder and Co-CEO of Spring, Keith Ippel, is leading the charge in democratizing access to wealth creation and funding. In a historical shift, individuals are now creating their own wealth movements, breaking away from traditional limitations on who has access to wealth. Ippel believes that changing how capital is provided is crucial in changing the face of who benefits from the business and entrepreneurial ecosystem.
Despite efforts to promote diversity, venture capital still faces a significant diversity problem. The numbers are stark, with only a minimal percentage of venture capital going to women, Black, Indigenous, and disabled founders. Black founders, in particular, received only 0.48% of all venture capital funding in 2023. While the data is discouraging, Ippel emphasizes the importance of using investment dollars to make a positive impact and create opportunities for underrepresented founders in the startup ecosystem.
Ippel suggests adopting an “ROI Squared” approach to investing, where return on investment is combined with return on impact. By aligning investment decisions with values and purpose, investors can support underrepresented founders who are making significant contributions to their industries. Examples like Bobbie Racette of Virtual Gurus and Lise Birikundavyi of BKR Capital showcase the innovation and leadership that underrepresented voices bring to the entrepreneurial space.
Investors have the power to reshape the transfer of wealth and drive diversity in entrepreneurship by opening pathways for underrepresented individuals to access funding. Ippel recommends empowering oneself through education, crafting an investment thesis, and exploring investment opportunities that align with values and purpose. Organizations like GenderSmart and The Making of Black Angels provide resources for early-stage investors looking to support underrepresented entrepreneurs and make intentional choices with their wealth distribution.
By making intentional choices in their investment process and actively seeking out opportunities to support underrepresented entrepreneurs, early-stage investors can create new pathways for diversity in entrepreneurship. Through education and collaboration with organizations dedicated to democratizing access to funding, investors can drive meaningful change in the entrepreneurial ecosystem. With a commitment to diversity and inclusion, investors can play a key role in reshaping the transfer of wealth and creating opportunities for underrepresented founders.
