7 Organizations Unite To Tackle Funding Inequities In The Tech Ecosystem

Seven organizations focused on diversity in tech have announced the formation of the Diversity Data Alliance to address funding disparities faced by underrepresented groups. 

The alliance comprises All Raise, Diversity VC, BLCK VC, StartOut, 2Gether-International, Vets in Tech, and Somos VC.

Standardizing Data for a Unified Approach

The Diversity Data Alliance has agreed upon a set of standardized demographic data points to be collected across each member organization. 

This initiative, which began in the spring of 2023 and saw its implementation in 2024, focuses on capturing demographic information, such as race, gender identity, sexual orientation, educational attainment, and more. 

The goal is to eliminate the structures that have historically hindered comprehensive analysis and cross-organization insights into funding practices.

“By standardizing our data and linking it together, we can uncover connections between funders and founders and see trends across communities,” said Sarah Millar, COO of DIversity VC and a founding member of the alliance, according to TechCrunch.

“This will allow us to measure the effectiveness of our programming and track trends over time to better serve our communities.”

Addressing Historical Inequities

The VC and entrepreneurship communities have long struggled with representation issues, often failing to allocate resources equitably to underrepresented groups. 

Various organizations have collected and published data highlighting these disparities, but efforts have been fragmented and inconsistent until now. 

The Diversity Data Alliance aims to change this by pooling resources and creating a centralized data pool to better track and understand funding trends.

The alliance is also keen on ensuring that data transparency becomes a standard practice within the industry. 

With a unified data collection approach, the alliance hopes to provide more precise insights into who is being funded and who is doing the funding, thereby identifying and addressing the inequities that persist in the VC landscape.

A Call to Action

The Diversity Data Alliance invites other firms and organizations to join this effort. 

While the initiative is still early, the alliance members are committed to driving the conversation forward. 

Regular updates, including new standards and recommendations, will be shared to keep the community informed.

“We cannot change what we don’t measure,” stated Paige Hendrix Buckner, CEO of All Raise. 

“By uniformly collecting demographics data, we can more deeply understand the landscape of the venture and startup ecosystem to ultimately drive more transparency and powerful storytelling about the characteristics of thriving venture capitalists and up-and-coming stars in our industry.”