Companies led by diverse management teams leverage a range of perspectives to better compete in a globalized economy. Companies in the top quartile for ethnic diversity are 33% more likely to have industry-leading profitability, and those in the top quartile for gender diversity are 21% more likely to outperform1. Diverse-owned funds are overrepresented in the top quartile of private equity funds2.
However, just under 3% of venture capital in the United States goes to women-led teams3 and only 1% goes to Black and Latinx founders4, 0.32% to Latinx women, and 0.0006% goes to Black women5. Across venture capital and private equity more broadly, of the $69 trillion of global financial assets under management across, less than 1.3% is managed by women and people of color6.
This market imbalance, coupled with our belief that diverse teams outperform, is the catalyst behind Launch With GS.