That’s why greater diversity of all types holds so much potential for entrepreneurs and investors.
Diverse companies exceed industry standards. Racially and ethnically diverse companies are 35 percent more likely to outperform industry norms, and gender-diverse companies are 15 percent more likely to outperform.
Here’s a jaw-dropping stat from McKinsey & Company’s Why Diversity Matters: For every 10 percent increase in racial and ethnic diversity on a senior executive team in the U.S., earnings before interest and taxes rise 0.8 percent. Why wouldn’t startups and VCs want to take advantage of that?