The White House hosted the first Demo Day for tech companies Tuesday.
President Obama hosted more than 30 companies and 90 entrepreneurs to feature female and minority-run startups as part of a new public-private initiative, USAToday reports. Venture capital firms in attendance promised to look for more diverse companies to invest in, as well as improve diversity in their own ranks. Right now, only about 3% of venture capital-backed starts are woman-run, and only 1% are run by African Americans.
It’s difficult for anyone “to get in front of the right people, but sometimes it’s harder if you are a woman or an underrepresented minority,” Obama said at the event. “The next Steve Jobs might be named Stephanie or Esteban.”
Companies including Box and Xerox have introduced the “Rooney rule,” named after Pittsburgh Steelers owner Dan Rooney, pledging to interview one woman and one person of color for every executive position. Hackers/Founders promised $20 million to invest in startups, and partnered with San Francisco company Women 2.0 to provide resources to female-led startups.
Chief Technology Officer of the U.S. Megan Smith says that diverse workforces only benefit companies, improving performance. A recent report from venture capital firm First Round Capital found that of its funded firms, those with female founders performed 63% better than the ones run by men. McKinsey also found that firms with more racial and gender diversity have higher financial performance.
Photo: Joi Ito