Funding diversity is profitable

diversity is profitable image

Diverse teams tend to be more effective, more profitable and more likely to outperform less diverse organizations because their backgrounds give them a wider array of tools and talent. A recent study in the Harvard Business Review showed when venture firms hired 10% more women as partners the firms saw:

  • 1.5% spike in overall fund returns
  • 9.5% more profitable exits

But Ulu believes diversity extends beyond ethnicity and gender and can be inclusive a wide variety of cultural, educational, and socio-economic backgrounds. Because diverse teams come from a variety of backgrounds they don’t get caught up in group think, which helps spark more innovative ways of thinking.

Diverse teams may also be thinking of opportunities in markets comprised of people that are often excluded or not thought of as lucrative investment areas. These markets can have tremendous potential for growth but investors aren’t familiar with how they work or what the needs may be. Diverse founders can often tap into the needs of these markets and recognize how to realize the potential.

On the frontier of disruptive technologies, diversity remains critical in providing distinct advantages in the global marketplace.