Closing the Tech Funding Gap
Current technology startup capitalization policies put under-represented tech startup founders at a disadvantage, contributing to discriminatory financing practices that cost the U.S. an estimated 9 million jobs and $300 billion in collective national income due to discrimination. At the same time, regulations prevent most Americans from qualifying as “accredited investors” and supporting these founders equitably. This policy brief recommends that the Securities and Exchange Commission dismantle discriminatory investor criteria and separate and unequal offerings related to the accredited investor definition. It also recommends that existing institutional investors pledge to create opportunities for diverse and emerging managers to help establish their track records. These solutions can advance equitable tech startup funding.
This brief was completed as part of a project for the 2020 Aspen Tech Policy Hub Fellowship, a program designed to teach technology experts how to impact policy.
