The Daily Stat: Venture Capitalists' Ethnic Favoritism Pays Off for Them

 

Are you having trouble viewing this email? If so, click here to see it in a web browser.

June 19, 2014 Venture Capitalists' Ethnic Favoritism Pays Off for Them U.S. venture capitalists are more likely to invest in start-ups with executives of the same ethnic origins as themselves, and these investments tend to bring superior payoffs, benefiting from close VC–manager communication and coordination, say Deepak Hegde of New York University and Justin Tumlinson of the University of Munich. About 84% of U.S. venture capitalists are of Anglo-Celtic or European origin, a proportion that nearly reflects these groups' share of the country's population. 3.74% and 2.96% of U.S.-based VC partners are of Indian and Chinese origin, respectively, about 6 and 4 times these ethnic groups' share of the population. SOURCE: Does Social Proximity Enhance Business Partnerships? Theory and Evidence from Ethnicity's Role in US Venture Capital

PREVIOUS STATS U.S. Government's Pipeline of Young Workers Is Drying Up Hospital Deaths Rise Markedly Once Occupancy Hits a Tipping Point A Key Ingredient for Creating Start-Ups: Young People Where Dads Do Moms' Chores, Daughters Have Unstereotypical Career Hopes Being Treated as Invisible is More Harmful than Harassment Why It's Getting Harder to Find a Small Home in the U.S.

BEST SELLERS HBR's 10 Must Reads: The Essentials | HBR's 10 Must Reads Boxed Set | HBR Guide to Persuasive Presentations | HBR Guide to Better Business Writing | HBR Guide to Getting the Right Work Done

FEATURED PRODUCT 25%* Off $40 Purchase Limited Time Offer! Place at least a $40 order online today at hbr.org and receive a 25%* discount on books, ebooks, articles, cases and more! Enter Promotion Code EMORD4025 into the Promotion Code field at Checkout, and click Apply button. *Note: Discount does not apply to HBR magazine subscriptions, shipping, handling, taxes or custom fees. Limit one-time use per customer. No adjustments to prior purchases. Cannot be combined with other discounted pricing offers. Limited time offer valid online only. Buy Now

FEATURED PRODUCT HBR Guide to Finance Basics for Managers eBook + Tools HBR Paperback Series Money. For a business, it might as well be oxygen. If you don't know how to manage it effectively, your company – and potentially your career – is likely to suffer. The problem is, many businesspeople don’t have a sufficient grasp of the common financial management tools and techniques that they need to survive – balance sheets, income statements, break-even analyses, financial ratio calculations and more. But there's no need to fear. The HBR Guide to Finance Basics for Managers eBook + Tools can help you master the fundamentals of finance or even teach them to others. Buy Now

ADVERTISEMENT

HBR.ORG | THE MAGAZINE | BLOGS | BOOKS | CASES | STORE | SUBSCRIBE TO HBR UNSUBSCRIBE | NEWSLETTERS PRIVACY POLICY | CONTACT Copyright © 2014 Harvard Business School Publishing, an affiliate of Harvard Business School. All rights reserved. Harvard Business Publishing 60 Harvard Way Boston, MA 02163 CUSTOMER SERVICE: 800-545-7685 (US/Canada) 1-617-783-7600 (outside the U.S. and Canada)