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- Award ID(s):
- 2135579
- PAR ID:
- 10561818
- Publisher / Repository:
- IEEE
- Date Published:
- ISBN:
- 979-8-3503-1892-0
- Page Range / eLocation ID:
- 4516 to 4526
- Format(s):
- Medium: X
- Location:
- Waikoloa, HI, USA
- Sponsoring Org:
- National Science Foundation
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When considering the many underserved communities and instances of ethnic injustice that require attention in the U.S., venture capital funding might not immediately come to mind. However, Hispanic and Black entrepreneurs receive only a minuscule portion of venture capital, which is drastically out of sync with their representation in the population. Despite differences in gender and education, 77% of venture fund recipients are White, while only 1% are African American [1]. The 2013 SBA Annual Report revealed that while there was some progress, only 15% of this funding went to women and underserved minority groups [2], despite these groups making up approximately 50% of the U.S. population. The private sector reflects a similar imbalance. According to a 2019 report by Diversity VC [1], a nonprofit promoting diversity in Venture Capital (VC), a comprehensive survey of around 10,000 founders who received venture capital revealed that only 9% were women, and just 1% were Black. This disparity is especially pronounced in the growing sectors of transdisciplinary startups—such as bioenergy, biotechnology, and nanomedical technologies—where cross-disciplinary expertise is becoming increasingly crucial. Entrepreneurs in these fields often face significant obstacles in securing adequate support, a problem that persists even as U.S. innovation contends with unprecedented global competition. This trend prompted Congress to allow eligible agencies to allocate 3% of their small business budgets to support underserved groups, as part of the SBIR/STTR Reauthorization Act of 2011. Consequently, several other agencies have begun using these funds to reach underserved communities. To ensure that the U.S. remains a world leader in R&D, besides SBA and a few other agencies, the National Science Foundation (NSF) launched the Innovative Postdoctoral Entrepreneurial Research Fellowship (IPERF) program. IPERF facilitates the professional development of Black, Hispanic, and female research fellows, typically underrepresented in STEM fields, by offering them invaluable experience within technology start-ups. The program’s goal is to enhance diversity in the high-tech start-up and entrepreneurial landscapes and improve opportunities for underserved groups. Meanwhile, interdisciplinary high-tech startups are growing exponentially, the biotechnology companies within IPERF make up nearly 40% of the IPERF companies. A longitudinal survey of 60 IPERF fellows who left the program between one and four years ago showed that 35% of them were hired by their host companies, still 25 % were working at those startups after three years. Most of the other fellows found jobs within the industry labs (30%) or other startup companies (10%).more » « less
- Free Publicly Accessible Full Text
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Accepted Manuscript1.0
- Conference Paper:
- https://doi.org/10.1109/WACV57701.2024.00447
