Congress exploring ways to diversify the fintech industry

WASHINGTON — Fintech and venture capital investments are growing nationwide, but research shows a majority of tech startups are based in Silicon Valley and lack diversity.

Experts say more than 75% of startup companies backed by investors were founded by white people regardless of gender.

Several minority business leaders say one of the biggest challenges is access.

A recent study from RateMyInvestor shows women-funded startups received only 9% of investments over the last five years. The same study showed only 1% of investment went to founders who were Black and less than 2% to Latino founders.

The creator of Black Founders Matter told federal lawmakers that minority women-backed investments often outperformed other groups significantly.

They want more companies to be intentional about hiring and investing in diverse companies.

“There are lived experiences that diverse founders have that they are able to bring to the companies that they create, and they are able to have their communities specifically in focus when creating such products and services,” said Marceau Michel, founder of Black Founders Matter.

Some business leaders also believe lawmakers should create more incentives to increase access for minority startups.

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