Fintech Founders Criticize Government’s Inaction on Funding Disparity, Urging Change
The fintech industry has been growing rapidly in recent years, with innovative startups disrupting traditional financial services. However, despite the industry’s success, there is still a significant funding disparity between male and female founders and founders of color. Fintech founders are now criticizing the government’s inaction on this issue and urging change.
According to a report by the National Venture Capital Association, only 2.2% of venture capital funding went to female-founded startups in 2018. Similarly, only 1% of venture capital funding went to black founders in 2018. This funding disparity is not only unfair but also detrimental to the industry’s growth and innovation.
Fintech founders are now speaking out against this issue, calling on the government to take action. They argue that the government should provide more funding opportunities for underrepresented groups and create policies that promote diversity and inclusion in the industry.
One of the fintech founders leading this charge is Sallie Krawcheck, CEO of Ellevest, a digital investment platform for women. Krawcheck has been vocal about the funding disparity in the industry and has called on investors to invest in more diverse startups. She has also urged the government to create policies that promote diversity and inclusion in the industry.
Another fintech founder, Arlan Hamilton, founder of Backstage Capital, a venture capital firm that invests in underrepresented founders, has also been vocal about the funding disparity in the industry. Hamilton has called on investors to invest in more diverse startups and has created a fund specifically for underrepresented founders.
Fintech founders are not only calling on the government to take action but are also taking matters into their own hands. Many fintech startups are now focusing on creating products and services that cater to underrepresented groups, such as women and people of color.
For example, Breaux Capital, a fintech startup founded by African American entrepreneurs, is focused on providing financial services to the black community. The startup offers a debit card that rewards users for shopping at black-owned businesses and provides financial education to its users.
In conclusion, the funding disparity in the fintech industry is a significant issue that needs to be addressed. Fintech founders are now speaking out against this issue and calling on the government to take action. They argue that the government should provide more funding opportunities for underrepresented groups and create policies that promote diversity and inclusion in the industry. By doing so, the industry can continue to grow and innovate while also promoting equality and fairness.
