“We fundamentally believe that diverse companies will perform better, that diverse companies will also be able to retain their top talent longer,” the CalPERS CEO said.
Given that the Bay area is one of the priciest regions in the country with one of the most acute housing shortages, it raises the question: are we seeing an investment fund-led surge here?
Investors increasingly seek out diversity among company founders, leading to more support for Black-led funds and growing appetite to back startups led by people from groups that venture capital has historically overlooked.
We have always and continue to want this incentive to succeed, but we continue to have trepidations about that. Those fears have only grown as we hear directly from people in communities who say the incentive is causing more harm than good.