Haas partners on new initiative to increase Black investors in venture capital

A program aimed at doubling the number of Black investors in venture capital over the next three years has been launched by BLCK VC, Operator Collective, Salesforce Ventures and UC Berkeley’s Haas School of Business.

The new Black Venture Institute will provide intensive education and networking opportunities for Black leaders who plan to work in venture capital and entrepreneurship. The goal is to graduate 300 fellows by 2023.

Berkeley Haas Entrepreneurship Prof. Toby Stuart will serve as faculty director for the institute’s first cohort of 50 students, teaching the online course through Berkeley Executive Education.

Prof. Toby Stuart
Prof. Toby Stuart is faculty director for the first Black Venture Institute cohort.

The program, which kicks off Nov. 2, will teach the foundations of venture investing, including how to evaluate companies, how to structure, negotiate and value financing rounds, and the roles of general partners and limited partners. Dropbox co-founder and CEO Drew Houston, and ExecOnline founder and CEO Stephen Bailey, are both scheduled to teach sessions with Stuart during the first session.

Venture capital has extremely low representation of Black professionals in technical, leadership, and investing roles. Just 1% of venture-backed startups have a Black founder and fewer than 3% of venture capital investors are Black, according to a RateMyInvestor diversity report.

But venture investing is something that’s tough to just pick up, said Leyla Seka, a former executive at Salesforce who co-founded Operator Collective, a venture capital fund focused on women-owned ventures.

“Even if we could break down the barriers and throw open the doors, there’s still a huge learning curve,” Seka wrote in a blog post announcing the new institute. “It takes time to learn the terms, understand the process, and make the connections. Some people grew up in that world, absorbing this knowledge through osmosis, but others need a leg up.”

Seka discussed the subject of increasing the number of Black professionals in venture capital with Kristina Susac, former vice president of Berkeley Executive Education. Susac recommended Stuart to lead the new program. “He’s Haas’ most sought-after faculty member in the areas of strategy, VC, entrepreneurship, and innovation,” she said. “He advises world leaders, global CEOs, and new entrepreneurs, and the students love him.”

Susac said the strength of the Salesforce Ventures, Operator Collective and BLCK VC partnership, anchored by Stuart’s instructional expertise, makes the goal of doubling the number of Black investors in VC attainable.

Black Venture Institute fellows will also be supported by the broader venture capital community and will be given ongoing access and mentorship from leading VCs in the ecosystem. Lo Toney, MBA 97, of Plexo Capital, Bill Gurley of Benchmark, Ron Conway of SV Angel, April Underwood, MBA 07, of #Angels, Monique Woodard of Cake Ventures, Scott Kupor of Andreessen Horowitz, Charles Hudson of Precursor Ventures, and many more have already committed to participate in the program.

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