The new fund trying to fix VC's other diversity problem

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February 3, 2021

Good morning, Broadsheet readers! Ulta Beauty commits $25 million to support Black customers and employees, Dolly Parton reworks ‘9 to 5’ for the Super Bowl, and a new fund tries to solve an old problem. Have a great Wednesday.

– VC’s other diversity problem. We often talk about the gap in venture capital funding for founders who are women and people of color. Less talked about is another gap in the VC world, the one that leaves women and people of color underrepresented among limited partners, or the individuals who back funds that invest in startups.

As Emma reports in a story out this morning, a new fund from Acrew Capital, the VC firm led by founding partner Theresia Gouw, is drawing attention to that divide—and trying to close it. Its new Diversify Capital Fund “will target LPs from underrepresented backgrounds and will invest in growth-stage businesses on the path to an IPO—the kinds of investments that are likely to build wealth for investors,” as Emma reports.

“Think about the top growth funds in the Valley—do you know who their LPs are?” Gouw told Emma. “Is there ever any talk about who they’re inviting to participate? The answer is typically something that’s very closely held.”

When people from marginalized groups are absent from the LP ranks it means they’re not benefiting directly from the enormous wealth Silicon Valley is generating—or wielding the influence that may come with it.

Sukhinder Singh Cassidy, the former president of StubHub and theBoardlist founder, is a founding venture partner of the fund. “I know how much of my own wealth creation has come through ownership,” she says. “And I know how hard access to ownership opportunities is [to find].”

You can read Emma’s full story here.

Claire Zillman
claire.zillman@fortune.com
@clairezillman

Today’s Broadsheet was curated by Emma Hinchliffe.

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ALSO IN THE HEADLINES

- Diversifying beauty. Ulta Beauty, led by CEO Mary Dillon, committed $25 million to an initiative to support Black-owned brands and Black employees. The beauty retailer will aim to double the number of Black-owned brands on its shelves by the end of the year, feature more Black women in its ads, and expand employee training on unconscious bias. Dillon says that the beauty industry should be leading on this issue, since it shapes what society sees as desirable or beautiful. CNBC

- Women get a shot. About two-thirds of vaccines given to patients so far in the U.S. have gone to women, according to the Centers for Disease Control. The finding reflects the high number of women who work in health care and who live in nursing homes, two groups who have so far been prioritized in vaccine distribution. The 19th*

- Five solutions. How can we solve the crisis facing working women? Experts in this story offer five steps the U.S. government could take, from better enforcing existing regulation to supporting state and local infrastructure. Fortune

- Working 5 to 9. Dolly Parton declined the offer to receive a Presidential Medal of Freedom twice during the Trump Administration—but she doesn't want you to take that as a political statement. Her husband was ill, she says, and she couldn't travel to Washington, D.C. (Now, she's not sure whether to accept one from President Biden after declining Trump.) The legendary singer-songwriter will also be featured in a Super Bowl commercial this weekend—singing about entrepreneurs working "5 to 9" in an ad for Squarespace. AP

MOVERS AND SHAKERS: Ancestry.com named a new CEO: Deborah Liu, a former exec on Facebook's Marketplace team. Net-a-Porter founder Natalie Massenet joins the board of Everlane. Riot Games hired Gaude Lydia Paez as SVP, global communications and corporate affairs. Appian hired former SAP exec Denise Broady as CMO. Michele Champagne joins Geltor as VP of commercialization and regulatory affairs.

CONTENT FROM PWC

What’s keeping companies from doing better?

Sixty-eight percent of leaders believe their business serves the greater good, but only 15% of the wider public agrees. We need to act to help close the gap. We recently surveyed US business leaders, employees and the public to understand what fosters and inhibits trust. These findings shaped actionable steps to help companies fight for social justice and take action, Now.

IN CASE YOU MISSED IT

- Is it too late to apologize? Ginni Thomas, wife of Supreme Court Justice Clarence Thomas, apologized to her husband's former law clerks for injecting her politics—specifically, her support of President Trump and the Jan. 6 rally that morphed into the Capitol riot—into their lives by association. "I have likely imposed on you my lifetime passions," Thomas wrote to the group. Washington Post

- Myanmar's military. After the coup in Myanmar, this story analyzes Daw Aung San Suu Kyi's five years at the head of the nation's government. Its conclusion: The military "never truly left" power. Instead, Aung San Suu Kyi's government provided "a facade of democracy to the world." New York Times

- Exercising caution. With facilities closed during COVID lockdowns, professional runners are spending more time training on the street. Women trying to keep up with training schedules say they've faced harassment and abuse while exercising outdoors. Guardian

ON MY RADAR

GM's bold move on the climate New York Times

The coronavirus vaccine presents a dilemma for pregnant women The New Yorker

Kwok Hiu-ting, 26-year-old daughter of developer magnate, buys Hong Kong’s Chinese newspaper Sing Tao South China Morning Post

PARTING WORDS

"Maybe there’s a bigger purpose for me with all of this—and it’s beyond getting good scores."

-Bijoya Das, volunteer assistant coach and choreographer for the University of California, Los Angeles's Bruins gymnastics team. She helped Nia Dennis prepare her viral floor routines.