TLDR:
- Venture capital has become more challenging for non-pattern-matching founders in 2024 due to a decline in deal count and values.
- Structural biases, such as gender, race, and age, have led to unequal opportunities for diverse founding teams in the VC industry.
Non-pattern-matching founders face additional hurdles in the venture capital industry as deal counts decrease and values hit a four-year low. Structural biases based on gender, race, age, and other factors have created unequal opportunities for diverse founding teams.
Research by DocSend showed that all-female teams and teams with minority members are receiving fewer meetings and raising less capital compared to all-male, majority teams. VCs are spending less time reviewing pitch decks, especially at the pre-seed stage, and focusing on specific aspects when evaluating diverse teams.
Despite biases in the industry, non-pattern-matching founders can employ certain strategies to improve their chances of securing funding. These include:
- Emphasizing persistence and resilience in the face of rejections, as seen in the success story of Arlan Hamilton.
- Seeking out VCs who understand and value their unique perspectives and backgrounds to build strong connections.
- Showcasing traction through metrics to demonstrate business viability and profitability.
- Building a diverse and complementary team that compensates for individual weaknesses.
- Recognizing that VC funding is not the sole indicator of success and evaluating the real need for external funding.
