Diversity VC “The Standard” added to the metrics used by Equality Group to assess funds EDI Funds that have “The Standard” hold significantly higher EDI scores

LONDON, GREATER LONDON, UNITED KINGDOM, August 15, 2023/EINPresswire.com/ -- The new collaboration will offer Diversity VC “The Standard” added to the sub-metrics used by Equality Group to assess funds on their EDI

Funds that have implemented “The Standard” hold significantly higher diversity, equality and inclusion scores
On average the 19 global VC funds that completed the certification process have a score that is almost double (42%) the industry average. This includes Kinnevik, Atomico, Balderton and Anthemis.

Diversity VC and Equality Group are collaborating to share their expertise with the venture capital industry, to build a more equitable investment ecosystem by advancing representation and inclusion at every fund.

The two organisations will share resources and expertise with each other’s clients, to offer a holistic approach to implementing effective equality, diversity and inclusion (EDI) strategies. This collaboration will see the Diversity VC “The Standard” added to the sub-metrics used by Equality Group to assess funds on their EDI.

“The Standard” is an assessment and certification process that sets a benchmark for best practices on diversity, equity and inclusion and provides actionable steps for improvement. It covers four key areas: recruiting & HR internal policy & culture, deal flow sources and portfolio guidance.

Using publicly available data, Equality Group’s digital evaluation tool Honordex analyses funds’ EDI performance. Honordex’s methodology is based on academic research and industry expertise. Each year Equality Group publish the annual Honordex Inclusive PE&VC Index measuring just over 300 funds on their EDI performance.

Research conducted using Honordex’s updated sub-metrics found that VC funds that implemented Diversity VC’s “Standard” scored higher than VC funds that have not gone through this process. The analysis found that of the 19 global VC funds that had adopted this approach scored almost double that of the industry average, at 30. This is 42% higher than the industry average of 17. “The Standard” contributed less than 2% to the overall score.

Kinnevik and Atomico, two funds that have completed “The Standard”, were ranked by Equality Group as the 1st and 3rd most inclusive VC funds out of the 132 evaluated as part of its 2023 Honordex Report. Balderton and Anthemis, also ranked in the top 10, at 7th and 8th respectively.

Kinnevik outperformed its peers as the fund specifically expressed its EDI commitment, transparency and intersectionally. Kinnevik also communicated clearly about its working conditions, which included supportive policies for equal parental leave and equal opportunities.

Amina Ahmad, Head of Content and Community, Diversity VC commented:
“Given the risk involved in venture capital, it is imperative that funds invest capital wisely. Helping VCs prioritise diversity, equality and inclusion is not just about creating a fairer and more sustainable society, it's also about ensuring diversified and robust portfolios.”

“Diversity VC is pleased to collaborate with Equality Group on the Honordex VC rankings in our collective mission to build a fairer, more equal investment ecosystem. Our collaboration will help build awareness of the actions that can be taken to promote EDI and provide access to enabling resources, including the Diversity VC Standard. It is another step forward in building an unstoppable community committed to taking meaningful action.”

Hephzi Pemberton, CEO and Founder, Equality Group commented:
“Equality Group’s collaboration with Diversity VC drives progress on equality, diversity and inclusion within the Venture Capital (VC) industry. The data shared from the Diversity VC Standard further develops our holistic and multidimensional EDI metrics. It also highlights what best practice looks like in the VC industry. From our collaboration this year, we can see that VC funds who have gone through the Diversity VC Standard are outperforming on the Honordex measurement. This demonstrates how transparency, commitment and collaboration can drive tangible progress in the industry.”

Notes to editors
Contact
Amina Ahmad, Head of Content and Community, Diversity VC
Email: amina@diversity.vc

Fernando Neme, Marketing and Analytics Manager, Equality Group
Email: fernando@equality.group

Hephzi Pemberton, Founder and CEO, Equality Group
Email: hephzi@equality.group

About Diversity VC
Diversity VC is a non-profit organisation focused on driving a diverse, equitable and inclusive
venture capital industry. One better positioned to open opportunity and growth in scaleable
markets. Working with industry partners, Diversity VC support includes hiring from more
diverse backgrounds, opening venture opportunities to diverse communities and producing
original research that provides a better understanding of the status quo and better equip the
industry to move from insights to action.

What is the “The Standard”
Our Community uses The Diversity VC Standard framework to help them achieve their DEI goals. This provides the tools and resources needed to cultivate an environment where founders and colleagues from all backgrounds feel they belong.

The Diversity VC Standard sends a clear signal to founders, LPs and potential employees that a
Fund follows the best DEI practices in the ecosystem. The Community holds funds accountable to their commitments.

We look at policies & practices across four areas:
Recruitment & HR
Internal policy and culture
Dealflow Sourcing
Portfolio Support
About Equality Group
We are Equality Group, the tech-enabled equality, diversity and inclusion consultancy. Our team of experts helps uncover EDI barriers and offers tailored solutions to unleash performance. We do this by creating and implementing tailored and data-driven strategies to help firms hire, educate and support their workforce.

We work with high-impact organisations across the finance and tech sector that want to bring more diversity into senior leadership levels of their organisations. Our clients include leading venture capital and private equity firms like Kinnevik, Advent International, Investcorp, EQT and Northzone.

Our team has published extensive EDI thought leadership, including 15 scientifically backed research papers and an Amazon bestselling book. We’ve educated over 2,000 professionals, built strategies and led change programs for over 50 clients.

About Honordex
Honordex is a comprehensive digital platform and evaluation tool developed by Equality Group that analyses companies on their Equality, Diversity and Inclusion (EDI) performance based on publicly available data. It is based on academic research and industry expertise.

Methodology

Watch this 3-minute video explaining the methodology.

Amina Ahmad
Diversity VC
amina@diversity.vc
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Watch this 3-minute video explaining the methodology.

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