BDC Report suggests VCs are developing a more diverse workforce but facing retention challenges
In February 2022, the Business Development Bank of Canada (BDC) developed a national diversity, equity and inclusion (DEI) reporting template for Canadian general partners. BDC Capital sent the reporting template to its 71 general partners and their 1,115 portfolio companies. At the end of 2022, 80 percent (57) of the general partners and 49 percent (544) of the portfolio companies had provided responses. The resulting DEI metrics were shared in December 2022. While the results are promising in some respects, the data demonstrates that there is still significant progress to be made on the DEI front, notably with respect to employee retention.
Among the encouraging news is the finding that women and visible minorities make up at least half of new hires at 49 percent and 45 percent of general partners, respectively. Further, in terms of career advancement, women and visible minorities account for at least half of promotions at 72 percent and 53 percent of general partners, respectively. However, the data is less encouraging when it comes to employee retention as women and visible minorities account for at least half of employee departures at 48 percent and 38 percent of general partners, respectively. Given the lack of gender and racial parity among general partners, these numbers are difficult to justify.
Alison Nankivell, Senior Vice President at BDC Capital, offered two possible explanations for the employee retention data. First, the increased level of employee departures could be a symptom of the current competition in the labour market. Second, some general partners may be having difficulties creating inclusive cultures where diverse employees can thrive. Regardless of the reasons, BDC Capital’s report serves as a reminder of the need to improve DEI metrics not only in employee retention but across all areas in the venture capital ecosystem.
Authors
Expertise
Insights
-
Technology
CanCode, Digital Literacy Program, Receives $39.2 Million in Federal Funding
From establishing the Digital Charter to earmarking $2.4 billion for the artificial intelligence (“AI”) industry in the 2024 federal budget, the Canadian government has consistently demonstrated its… -
Technology
Virtuix Announces Launch of their Omni One VR Treadmill
Virtuix recently revealed it will be launching a virtual reality treadmill—called Omni One—on September 10, 2024. The first of its kind, Omni One allows users to experience the locomotive elements of… -
Technology
WELL Health Plans to Spin Out and Publicly List WELL Provider Solutions
WELL Health (WELL) has announced its plans to spin out and publicly list WELL Provider Solutions (WPS), the company’s Software-as-a-Service (SaaS) business unit.WELL, founded in 2012 and listed on the… -
Technology
Perceptive Space Raises $3.9 Million to Predict Space Weather Using AI
Perceptive Space, a Canadian aerospace startup, closed a CAD $3.9 million (USD $2.8 million) pre-seed funding round. This marks the company’s first external funding to date. The round was led by… -
Technology
Advancing Femtech: Flo Health Secures $200 Million in Series C Funding
Flo Health is a London-based startup that designed a health app for fertility and period-tracking. On July 30, 2024, it raised $200 million in Series C funding from General Atlantic. Flo Health is now… -
Technology
The Microsoft and NVIDIA Collaboration
As modern medicine develops, it increasingly relies on technological advancements. One of the more recent and major examples of this is Microsoft’s collaboration with NVIDIA to bring the power of…