Authors:
Heather Metcalf, PI, CRO AWIS
Erin Kelley, Co-PI S2M
Aspen Russell, Co-PI, Researcher AWIS

Policy Memo #13
DATE

Short Sightedness, Not Shortage of Talent largely responsible for
underinvestment in Women of Color tech entrepreneurs
SUMMARY
Despite evidence that diversity is good for science and business, women of color (WOC) STEM entrepreneurs are continuously overlooked for growth and investment opportunities by entrepreneurship support
organizations, angel investors, venture capitalists, and other funders. When WOC are excluded from development opportunities, it raises economic competitiveness concerns and weakens the ability of the sector to
design and produce solutions that meet the needs and expectations of ever growing and diverse consumers.
Investors tend to attribute funding inequities experienced by WOC STEM entrepreneurs to talent shortages,
an old trope that requires little attention to biases that underlie the lack of effort and progress made to
address this issue. However, a new study by the Association for Women in Science (AWIS) rejects the
pipeline theory as a major contributor of funding disparities and instead puts the onus on funders to broaden
their networks and efforts to reach marginalized tech entrepreneurs who stand ready for expansion. The study
also provides evidence that traditional incubator and accelerator programs do not adequately support or
advance WOC tech founders. These programs often ignore systemic barriers experienced by WOC, and in
many instances, perpetuate negative stereotypes about WOC entrepreneurs. The shortsightedness of invoking perceived pipeline problems and relying on rigid programs that don’t consider the gendered and racialized
biases WOC in tech experience limits the collective contributions needed to advance the field. The study
points to several actionable measures investors, tech transfer, and entrepreneurship support organizations
can take to remedy the funding disparity experienced by WOC STEM entrepreneurs.

SAMPLE OF ACTION ITEMS FOR INVESTORS, TECH TRANSFER OFFICES, AND
ENTREPRENEURSHIP SUPPORT PROGRAMS
• Analyze the breadth, diversity, dynamism, and connection capacity of your network, using the AWIS
S2M Network Assessment Tool. You’ll understand your network’s current state and identify what kinds of
people would strengthen it.
• Remove any existing “weed out” philosophy from your program culture, structure, operations and
curriculum. This misguided philosophy is based on false assumptions about who can be a successful
entrepreneur. Instead, keep entrepreneurs engaged through holistic support and flexible program design.
• Check your evaluation criteria for ambiguous or biased factors, then revise your criteria so they are
clearly articulated and align with your investment and/or recruitment goals. Stick to the criteria when
evaluating companies and founders. For added accountability and transparency, share the criteria with
potential founders.
• When you hear biased commentary about founders who are women and people of color, speak up
respectfully and ask others to do the same for you.

Less than 1% of venture capital is
awarded to women of color.
Resource gatekeepers, like investors, tech
transfer offices, and entrepreneurship
support programs, need to actively
mitigate bias in their decision-making
to open up equitable opportunities for
WOC tech founders.
For questions contact study author Heather Metcalf, PI and Project
Lead for the STEM to Market Program metcalf@awis.org

STEM to Market is a two-part program
that supports STEM women entrepreneurs
while transforming institutions that
control innovation resources.
4 out of 225: The number of women
of color led biotech companies that
have made an initial public
offering in the past five years.
To read the full report visit
https://magazine.awis.org/publication/?i=491204