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All is Not Lost: Government vs Nigerian Tech
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April 5th, 2021
Ingressive For Good vs. Burrowes Enterprises
What Does President Biden’s Election Mean for African Tech?
The relationship between technology and government is the epitome of a “Love, Hate” affair; so now the world is waiting to see if President-Elect, Joe Biden will be the one to reignite the passion. At one point in time, the US government represented Prometheus, giving the earth the building blocks of world changers like the internet and GPS. Decades later, the relationship has become more contentious as the same government levies anti-trust lawsuits and legislative hurdles to reign in the multinational growth of household names like Google and Facebook. The bigger question remains, even if President-Elect Joe Biden is for growth in the tech sector, where does Africa fall in that equation.
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January 15th, 2021
To answer this question effectively, We have to understand the immense size of US tech companies to realize their impact on global technology. The majority of the top thirty Dow Jones Index companies by market capitalization are either tech companies or highly dependent on tech innovation as a way of maintaining their competitive advantage. Microsoft, Apple, and Visa; the top three biggest companies in the US, would be number five behind Germany on the list of GDP by country or 8.5 times the GDP of Nigeria, Africa’s largest economy. This speaks to the ability of US technology companies to engage the far reaches of the globe to convert customers and this reach also comes with influence. The United States has a long history of leveraging advanced technology to enforce foreign policy and the influence of tech startups does not go unnoticed.
We are all aware of the advanced explosives, drones, and cyber tools in America’s war chest, FAANG companies like Google can also be bullets in the USA’s digital gun. China vs America is an example of how wars will be fought in the future with the digital tools we use every day to shut down the aims of economic foes. 5G currently represents the heart and soul of 4IR and the US cannot allow China’s Huawei to be the global supplier of this advancement. On one side Trump’s administration was putting political pressure on allies, disrupting national infrastructure agreements with Chinese companies, and arresting the Huawei CEO. However; Huawei was also stripped of access to Google services like Google Maps and the Android operating system; temporarily crippling sales of the devices and the usage of the current devices of one of China’s largest contributors to their immense GDP.
America is not alone in its use of technology as a way to enforce policy at the highest levels of government. US government forces and allies have used viruses to cripple the infrastructure of their adversaries like when Iran’s nuclear reactors were mysteriously shut down. Other players have taken queues from America’s advances and are finding ways as both national strategies and empowered individuals to enforce their will. Saudi Arabia’s Crown Prince Mohammed bin Salman is said to be behind the murder of journalist Jamal Khashoggi and the hacking of Amazon CEO Jeff Bezo’s phone via an Israeli cybersecurity firm. Russian hacker elite “Cozy Bear” a purported arm of Russia’s FSB, was previously accused of US election tampering and more recently with attempting to steal COVID-19 vaccine research. Africa tends to have a higher tendency to shut down access to the internet as a way of shutting down government dissent. With dissent high across the world, this makes the new president’s position more important than ever.
Although President-Elect Joe Biden’s administration has yet to begin we can use some insight from the Obama administration. President Obama, the first social media president, exposed then-Vice Presidential candidate Joe Biden to the power of social media and other technologies. A 2016 Article by the Intercept reports that not only did President Obama average more than one meeting a week with Google executives, the administration also exchanged over 250 employees with Google during his tenure. Although Obama wasn’t considered perfect in the eyes of the tech giants due to his policies in areas like intellectual property and privacy; we can comfortably assume Biden served within a presidency that grasped the importance of technology across varied use cases.
We can also take a historical look at how the Democratic Party has engaged tech as a party. The new brand of US techies doesn’t currently fit into any political model based on what they stand for. They typically vote democrat because of the youth driving tech value education and see the role of government as more of an investment partner than a regulator. The truth is that neither side thinks very highly of big tech but for very different reasons. Democrats think that big tech companies like Apple and Google have monopoly power, Republicans think social media companies discriminate against them, and both sides want to break up their power.
With all that President-Elect Joe Biden can do for America, what does he mean for Africa? We can expect a more stable foreign policy executed through existing coalitions instead of head-on collisions that stood out in the Trump and China relationship. Biden’s plans for access to the internet bode well for Africa. His willingness to invest $20 Billion into America’s rural broadband infrastructure makes doing the same in Africa more digestible. Biden has proved to be open to various forms of free trade deals but has also been one to put human rights violations at the forefront, potentially muddying waters for African countries like Nigeria. There’s a lot we don’t know, but I have a few educated guesses on what will happen next.
What The Joe Biden Presidency Means for African Tech:
1. Tax Implications
Corporate Tax - The Trump administration tax relief given to big companies will be revoked both increasing income tax rates by almost 15% and possibly removing the tax break given to income earned overseas. The result will be less foreign capital injected into US subsidiaries based in Africa as the tax incentive will no longer exist.
Capital Gains Tax - The current venture capital model gives discounts on money earned from investments. Biden plans to disrupt this model by expanding the tax to include those who make over $1M from their investments. This will discourage using VC investments as a way to earn cheaper money, negatively impacting investment in general especially Africa.
Brad Baum of Chicago-based VC Lightbank - “If there’s less limited partner investment in a fund, you’ll see smaller funds with less capital to deploy, and tighter investment terms that are potentially less favorable to [startup] founders.”
2. H-1B Visas
The Trump administration and their immigration policies made the H-1B visa application, a process that allowed big tech firms to hire specialized talent, an arduous journey. A recently passed law in this area requires H-1B visa recipients to be paid at least $208k to be eligible causing concern for many currently under this status.
The Biden administration plans to reform the H-1B visa policies and possibly eliminate green card caps by country. This means there will be increased opportunities for top-level talent to find jobs in the US working for big tech companies. We can assume there will be a less contentious relationship with the US and immigration going forward.
3. Social Media Censorship & Privacy
Nigerians have been up in arms for the past year due to an Anti-Social Media bill introduced on November 5th, 2019. International communities have spoken out against the measure and it’s draconian punishments. However; people would be surprised to know that Nigeria isn’t the only country to attempt to stem the power of social media.
President-Elect Joe Biden’s plans to stop harassment on social media would seem innocent enough if not for this past of voting on and introducing legislation that gave the FBI more authority to surveil communications including internet traffic and VOIP calls. This act will create more backdoors into communications allowing governments all over the world more access to private information.
Those in the music industry may have to fear lawsuits when sharing music files or allowing music files to be shared. Joe is seen as a champion of Hollywood and copyright laws making it a felony in some cases to download and share music. This may not have a huge impact on major artists, but will impede the free sharing of music that may have introduced Africans to lesser-known artists and vice versa.
4. Antitrust Lawsuits
Antitrust laws are meant to keep companies from getting so big that no one can compete with them. By breaking these companies up into smaller pieces, it forces them to operate under different laws, financial structures, leaving room for more companies to participate in the space.
Companies like Google are facing backlash about their control of areas from online advertising to underwater cable laying capacity. Breaking up these larger corporations leaves room for niche players that answer to the needs of specific audiences to become top of mind. Lawsuits of this nature can take years giving savvy African technology companies the time to build a solution to fill profitable gaps.
5. African / US Investment
Trump’s “America First” policy featured a break from common associations and allies that pushed money into Africa. Biden will soften that stance resulting in more income flowing into organizations like WHO and the Paris Climate Agreement that support the infrastructure of African countries.
President-Elect Biden will meet a Republican-led Senate ensuring a more aggressive foreign policy regarding funds deployed from an FDI perspective. Republicans are typically ready to wheel and deal if the right deal is on the table. The US also prefers to deal with national parties over regional ones leaving Nigeria well-positioned.
The new president will be interested in quick wins to build momentum. The same will hold true for the African continent. Extending AGOA and supporting the African Continental Free Trade Zone would be easy ways to gain political capital that will inherently create opportunities for tech companies to build the digital infrastructure necessary for these industries to grow sustainably.
Is the Biden administration a positive sign for Africa, as usual the answer is not really. However; the current President-Elect’s policies will leave more room at the table for African leaders and companies to negotiate. We can assume that the same social issues that plague America internally will continue in the usual ways, but the outward policy will most likely be one that does not choose to refer to Africa and other developing regions and continents as s#!t-hole countries. For now, that’s a start...
At some point, my friend turned adversary began yelling at the top of his lungs. “Are you saying my MBA is worthless? It cost me $80k and you don’t even have one! How can you say you know more than me?”...
- Suya Stories Blog / Sean Burrowes
Chasing the American dream requires a dedication to surpassing those around you in a way that distances us from the most valuable things life has to offer. Whether it be capitalism or democracy, western ideals have a way of rewarding individual achievements over the well-being of the entire population. By seeking to recreate the western experience in developing nations we make bold steps towards the dissolution of historic black culture by distancing ourselves from our origins......
November 15th, 2020
Though I worked tirelessly on my accent, my value system always revealed my deep southern roots and culture. Saying yes ma’am and no ma’am, getting up for the elderly, and opening doors for women transitioned from a way of life to an identifying factor the further I traveled from the rural corners of America. This became more important when I learned later in life that Africa transmitted its history orally. I connected this to the 400 years of slavery, when black Americans were not allowed to read and gained a deeper perspective. For thousands of years, black people have used words, stories, and songs to record history. It is obvious today that during those times when I was trying to fit in, I gave up more than my accent.
Although I do have a hard time identifying what Black American culture is, I do recognize our habits and tendencies. Being raised as both a “preacher’s kid,” being part of a military family, and living in semi-rural Mississippi, created a unique mold that I couldn’t quite break. Not only that, I could recognize another from a mile away. That fact became more evident as I traveled to bigger cities and professional roles plunging me into new communities and cultures. I always thought differently, played differently, and fought differently. I noticed the more I played down those differences, the easier it was to move up the ladder and that much closer to success.
Words like integration and assimilation became more frequent earlier in life and in my career. I stuck out in rooms and found myself wanting to be anything but myself. The picture of success didn’t look like me, my idols didn’t dress like me, and my heroes didn’t sound like me. The more I juxtaposed my southern twang and drawl against the quick vernacular of my colleagues, the more my mind played out all of the associated stereotypes. I never thought about using those lower expectations to shatter paradigms. I perceived a general acceptance that the closer I was to the further I was from the the American dream. It wasn’t until I returned to a more communal living that began to leverage the pride of my origins to blaze new trails.
The love of travel is the Godsend that allowed me to better understand the natural state of human existence. My quickest path to success drew me into bigger and bigger cities and I soaked in the journey. However; once you travel beyond the flicker and flash of international capitals, business centers, and other metropolises; you begin to realize that life there is the exception and not the rule. More often than not, people make do with what they have and lean on their neighbors when times get tough. Nowadays, we leave behind seemingly antiquated ways to join the ranks of the elite in the dog-eat-dog world in the city. However; we leave behind the foundation of communal human relations far more common in developing economies and the more successful demographics.
People from rural areas are commonly known for their honesty, their principles, their integrity, and and communication habits. When in a close-knit community, the odd ones stick out. Before the @TheShaderoom graced our feeds, local aunties had the tea, and it was piping hot. It is easy to find out who’s on Santa’s naughty or nice list within the small communities. You have to reflect the ideals of your community or risk various attempts at communal correction before you leave, you get ostracized, or worse. Closer human relationships make it easier to identify changes in behavior and “outside” influence. As a result rural culture is deep, it is heavy, and it is ingrained, be it positive or negative.
City life has a different feel. Its essence is live and let die and/or my rights stop where yours begins. Bit by bit, city habitats compromise to accommodate their surrounding diversity while also being less diverse. The small changes are often those identifying features that speak to our roots and former pride. The city will grind away your rough tribal edges leaving a mirrored surface reflecting your surroundings. The result is a more efficient system that wastes no time on the square pegs that can’t fit the round hole. The economic advantages masses of people create, keeps success within view, just not close enough to touch. The majority of city dwellers keep spinning the hamster wheel chasing the bait.
Once you venture into places beyond “the law” you find people do not descend into wanton chaos and violence, something more natural takes shape. In “the bush” you see a more human-centered design dependant upon a mixture of natural law, reputation, and respect. Simpler economies and increased local influence lead to more leisure time and deeper human bonds. These communities do tend to be more homogeneous and the will of the people is easy to assume by local champions. This allows for swifter change or none at all. There are obvious reasons to seek a better life by joining “civilization”, but too often we see the good already in us as a liability.
Whether it’s three acres and a mule or a half-acre lot for your wife/husband 2.3 kids and the dog, it would be difficult for the majority of black Americans to have both the dream and the job to match. All over the world masses of human bodies cram themselves into any space available to be closer to economic opportunity. To find yourself in a sustainable situation of having both the lifestyle western propaganda boasts and the job that supports it immediately puts you in the upper echelon. You have succeeded amongst an advanced level and number of geniuses, workaholics, and scammers. You can’t be weak, you can’t be slow, and you have to take any opportunity that arises sometimes at the expense of your identity and morality.
Am I saying don’t dream of western innovation no… I am saying we need to re-imagine the black American dream in at least three core ways. We will never be a monolithic people, but there does need to be an agreed-upon foundation. I would lean upon the model of sacred belief systems to create a base level of learning that reflects life as a black person in this world. At every strategic point in life possible we need to instill monetizable talents and skill sets, reconnect to producers of essential items within the African diaspora, and focus on being a complete person, not just a godly one.
We need a new religion. All of our current belief systems were created 2,000+ years before the internet was created and George Floyd was murdered live. We need to update to 2.0 and address quality of life. I’ll leave it to religion to save our souls, but can we develop a global system teaching us how to protect our bodies? Can we identify “modern-day saints” and recent black geniuses exhibiting the behavior and/or intelligence we want to replicate? We can pray five times a day, but can we also make five purchases a day from a business where a black person owns the source of production? I have no issue with any religion as most of them rest upon the same core principles, but there needs to be something that specifically contributes to our physical experience on this earth. The biggest obstacle between black people and God is our broken humanity.
We need to be support our creators. We need to connect to black-owned production. The three words that need to echo through the halls of blackness should be “manufacture, agriculture, and tech.” Pick something, learn something, or work with something in those three areas and retain the knowledge. We need to reach deeper within the roots of local and global supply chains and start extracting and building with source materials. We have to grow past being resellers. Not only must we purchase black owned products, but our ingenuity must be focused on building profitable ecosystems around it. If a black business makes a new smart phone, someone from our ranks should start making accessories.
We need to close the gap. We need to return to the idea of community living as global black populations with the understanding of our strength in numbers. Then we eventually tackle the “it takes a village to raise a child” mentality. We need to control access to our resources and communities. I’m not advocating for re-segregation, but I’m saying, let’s take a minute, put our cards on the table, and see what we can do together.
With that being said, don’t be so distant! Focus on finding things you have in common within the diaspora and build new relationships. Diligently look for local talent and support them with your money. Identify mentors and find a way to be of service. Participate in rebuilding the social infrastructure within the African diaspora. Contribute to people, groups, and organizations developing our people and our capacity. Chasing a dream that does not inherently benefit the community it draws from, is no dream. It is the nightmare your children must wake up to.
It is very difficult for many social media users to scroll without coming across movie poster selfies and comic book historian dissertations on The Black Panther. Even six weeks later timelines are splashed daily with images of fans with arms crossing their chests, a foreboding expression, and the new..
- Suya Stories Blog / Sean Burrowes
My Response to #EndSARS
My heart was broken on October 20th, 2020. In a split second I transitioned from the highs of pride and love for Nigeria during the protest at Lekki Toll Gate, to the lows of horror, despair, and embarrassment following the tragic massacre just a week later.....
October 31st, 2020
Elon Musk has yet again plucked what can only be described as the lucid dreams of a creative adolescent into a multi-million-dollar venture. Eleven million to be exact. First, it was electric cars, then it was spaceships to Mars, and now...
- Suya Stories Blog / Sean Burrowes
How Interns will change African Tech
Being an intern is rough. Interns, especially those in companies with bad culture, can expect to be flooded with work as they begin a new life of being subservient to those responsible for reporting on their performance (2. The Guardian: Interns Aren’t Just Cheap Labor to Abuse). Being an intern is literally the lowest position in the entire company and to make matters worse there are thousands of people waiting in if an intern can’t pull their weight. So why be an intern? And how does this equate to changing Africa?
September 15th, 2020
In a new policy research report released last month entitled Creating Decent Jobs: Strategies, policies, and instruments, the African Development Bank says most of the degrees awarded by African universities lack the academic rigour, relevance and career-focused skills to enable graduates to get decent jobs (3. University World News: Unskilled Graduates Struggle to Find Decent Jobs). In 2017, Ingressive LLC’s campus ambassador program participants reported learning how to write computer code on chalkboards. The same program participants reported learning from 10 year old textbooks on coding languages far past their prime.
Several signs point to African education systems lacking the capacity to prepare students for tech-related jobs, but COVID-19 is highlighting how current technology combined with an internship can change that narrative. Ivy League universities are shifting to online learning models prove skill sets at the highest level can be learned and monetized with only a laptop and internet. The explosion of digital learning platforms like Coursera works to expose the fact that the information graduates seek exists on the world wide web. Combining those lessons with real world experience will make candidate resumes more competitive.
The true potential of an internship in a tech-related field can be discovered by following the money. A study of over 20,000 students in the US found that over 60% of students with a paid internships get job offers and make almost $7,000 per year more than those who don’t (4. Jennie Burlowski: The 5 Ways Internships Increase Post-College Earning Power). Big tech has recently created the world’s first trillionaire in Jeff Bezos and companies like Google pay interns over $6,000 per month plus benefits. Multinational tech giants are competitively seeking young talent early as a part of their business models and it won’t be long before African countries follow suit.
It is unfortunate that the figures above hold no promises for African computer science graduates, but it exposes the wave to come. In the 1940’s Silicon Valley was erected out of the flood of student genius flowing out of universities like Stanford and IT Berkley and grew into a $3 trillion neighborhood (Business Insider: How Silicon Valley Became a $3 Trillion Neighborhood). Fast forward about 50 years and you will find a Silicon moniker in every African country with a tech program.
The truth of the matter is that no figures would directly report that interns will save Africa. What we can determine is that graduates are in desperate need of a way to bridge the gap that exists between graduation and employment. With Africa acting in service of the global tech economies and not as a creator; it is up to new graduates to connect with entrepreneurs and SMEs to be the source of tech integration.
African youth must be the drivers of African change as students have for decades. The Apartheid Divestment in the late 1970s, Tiananmen Square in 1989, and the current Black Lives Matter movement were all fueled by students who risked it all to change the world (The New York Times: 7 Times When Students Turned to Activism). Once again it falls upon the shoulders of our global youth to both speak a convincing truth to power and connect the African continent to the Fourth Industrial Revolution. Students may have a skills gap, but entrepreneurs and SMEs also have an understanding gap regarding relevant global technology and how it connects to revenue generation.
In the same way that the private sector drives government policy, students must now change their own stars by proving their skills are valuable in the workplace. They must actively leverage their learning communities and mentors to create use cases for their skill sets that add to the bottom line of African businesses. Working for low wages and mistreatment will be painful for the pioneers, but it will lay the necessary groundwork. This is the infrastructure needed to disrupt competitors stuck in the old ways of doing business and develop future economies.
Ingressive For Good (I4G) learned this truth in 2018 through the Ready Set Work government sponsored internship program. The lost souls we brought on to do the most tedious tasks are now full time employees running their own departments. Ingressive needed to be passionate about development and the interns needed to commit to constantly learning and stepping out of their comfort zones. The result is a company that keeps growing and evolving due to a team that is understanding of the past, rooted in the present, and connected to the future. Creating a robust internship program creates a space for more affordable expansion and succession planning, leading to a more sustainable business model. Giving a voice to youth within a company also ensures a company structure capable of adapting to changing times.
I4G continues to play its part as an African tech ecosystem developer through the launching of our workforce readiness initiatives and partnering with local and global tech companies seeking talent. I4G community members get free access to online courses with certifications, collaborative resume building challenges, and mentor led study groups. In conjunction with education and mentors; I4G staff are connecting with HR departments, recruiters, and corporate partners to introduce the African business world to the next generation of tech-enabled rock stars. Visit www.ingressive.org to join the I4G network and connect to a brighter future!
Forbes: The Evolution of Interns
The Guardian: Interns Aren’t Just Cheap Labor to Abuse
University World News: University Graduates Struggle to Find Decent Jobs
Jennie Burlowski: The 5 Ways Internships Increase Post-College Earning Power
Business Insider: How Silicon Valley Became a $3 Trillion Neighborhood
The New York Times: 7 Times When Students Turned to Activism
The crowd surrounding the two young men was growing by the second. The lottery shop owner’s chiseled arms rose up and crashed down upon their heads with his slipper in rapid succession...
- Suya Stories Blog / Sean Burrowes
Dissecting Black Tech Exclusion
Today, the global African diaspora is positioned to be consumers of technology but not creators of innovation. As consumers, the African diaspora can influence marketing efforts that lead to sales but will seldom see tech innovation that reflects its perspective while serving specific needs. Unless something changes, the global black community will continue to suffer from the weight of tech exclusion without the foresight to see its far-reaching implications...
August 15th, 2020
“We can see how bias is built into our systems and our technology, so there’s a huge opportunity there. This type of discrimination and bias is unethical and almost criminal. In Oakland, California, a software was piloted to identify areas that were predicted to have high crime and high drug sales. But unfortunately, what that algorithm was doing was highlighting areas that had a high population of minorities, regardless of the crime rate. So that’s just one example of how we need to ensure that as we’re designing software and utilizing AI and machine learning, we’re being inclusive and we’re thinking about everyone as we’re building, creating, and innovating.”
“For builders, are you willing to interrogate how your work may facilitate racism? I am reminded of Google’s photo categorization algorithms that classified Black people as gorillas. A more diverse team would have caught that before it went live.”
Although many countries seek to replicate the Silicon Valley ecosystem pioneered in the US, its model also creates inherent disparities that are proving to be systemic. Charley Moore, the CEO of Rocket Lawyer, said in his interview with CNBC that “There are only four black CEOs among Fortune 500 companies, and none of them are in technology.” This quote begins to paint an all too common picture where opportunities in the US exist but only for a select few. Even with access to reliable infrastructure and education, black populations are on the outside looking in when it comes to today’s tech-enabled economies.
“Black and Hispanic students that are graduating with a computer science degree, that’s about 15% for the past five, six, seven, eight years, but we’re only about 3% Black and Latinx in the industry. So, that tells me there’s something else going on there and there’s a lot of barriers to these learners even getting a seat, a foot in the door.”
Further proof of systematic exclusion within the tech sector can be found within the explosive African startup ecosystem. Every global industry and influencer leverage African resources to create more profitable and sustainable supply chains. It would seem logical that indigenous people connected to these resources and culture would have a competitive advantage on the world stage. The 2019 Africa Tech Venture Capital Report by the Partech Africa Team says “African tech start-ups reach a new symbolic milestone with US$ 2.02 Billion raised in equity funding, a 74% YoY growth.” However, The Guardian also during that period reported that analyzed public data revealed that out of the ten African based startups that received the highest amount of funding, eight were led by foreigners (whites).
“A white founder is 47,000 percent more likely to be funded in Kenya than in the US, based on 2018 disclosures. White people make up less than 1% of the Kenyan population and 65% of expatriate founders mainly from the US, the UK, Italy, Denmark and Germany have never lived in Kenya prior to starting their companies.”
The issue faced is cyclical, proportioning blame in various ways depending on where you join the circle. Facts and findings speak to a system that does not support or invest in black communities. Internal perspectives highlight a lack of interest or participation within the global tech space by black talent rooted in a feeling of futility. Members of black communities often speak of innovative concepts but seldom take a bold step towards creating these ventures. Flashes of interest are often counteracted by the fact that if one can’t get a job within a tech company, how could they ever aspire to run one?
“Many tech companies have made statements of support for Black Lives Matter, after protests began but are an example of “black power washing” — giving lip service to their commitment to the black community, but so far doing little to change their hiring practices or their platforms, which can engage in racial profiling or make money from hate speech.”
Two major areas the black diaspora suffers from in our quest to join the global tech elites are funding and collaboration. Again, these two problems represent a pendulum that swings vigorously between lacking access to the necessary resources to start ventures and not launching a tech-enabled venture because there’s no money in it. The perception of funding being the elephant in the room stifles even the thought of collaborating in the early stages of innovation. Needs of the day too often surpass the needs of the future as the diaspora remains, at best, vagrants among new tech darlings and the old guard.
The conversation to be had among black communities all over the world is not one centered around an indictment of white participants in the global tech ecosystem, but rather a learning opportunity for black community around collaboration. As much as some may want to rush into Fortune 500 company boardrooms with fists raised high, a more sustainable and impactful solution lies within collaboration. McKinsey reports that companies that have racial and ethnic diversity are 35% more likely to have financial returns above their respective national industry medians. A McKinsey study from 2012 found that ethnic and racially diverse executive boards delivered returns on equity that were 53% higher.
The tech industry ignoring this public knowledge looks more like blatant racism than a success story that should be replicated, but context matters, outcomes matter, progress matters. Unfortunately decrying racism from the rooftops is somehow less impactful than building the infrastructure necessary to create and recycle wealth within black communities. Black populations simply need to apply the same methods to their own business activities. It is not enough to identify racism, collective action needs to be strategic and organized in a way that will surpass it.
“Are you willing to hold space for Black employees? As in, are any Black people even on your team―especially in leadership positions? If not, are you willing to treat hiring Black people as another growth challenge and hack it? Are you willing to recruit at historically Black colleges and universities (HBCUs) and African tertiary institutions as enthusiastically as historically white colleges and universities?”
“Investors have been reaching out to me left and right asking what they can do. It’s not complicated: Invest in Black founders. You don’t have to invest in ALL Black founders. You can keep your thesis and yes even your so-called ‘standards’ and find multiple Black founders to invest in,” Hamilton wrote. “If you need help, I have 130 portfolio companies + I can introduce you to a curated list of a dozen Black investors to hire. My email address is ARLAN@BackstageCapital.com. No more excuses.”
To say funding is a major obstacle to the world seeing more black faces in tech startups doesn’t fully encompass the issue. On one side you do have the fact that investors typically represent a particular demographic that sees increased value in their reflection. On the other, you have a market with prices that exclude the financial majority whose ranks are filled unequally by black people. It is here you realize the perfect storm that renders African diaspora founders invisible.
“The reason a lot of us [women and minorities] don’t get funded is because a lot of investors don’t look like us,”
Regarding venture capital, the statistical evidence and individual feedback speak to a hostile environment that assumes black people are outside of their depth. According to the oft-cited 2015 report by venture capital research firm CB Insights, black founders received a mere one percent of venture capital (VC) dollars, even though blacks make up 12 percent of the US population. The investment issue also flows upstream as black-owned VCs struggle to raise money and black investors grapple with colleagues to make them see the value in considering diversity when investing.
“Blacks are underrepresented in the executive ranks of startups by 82% and more than 75% of all rounds raised go to all-white founding teams.”
This all begins to point to a rather bleak future for potential black startup founders AND investors, however; there are solutions available, although difficult in the short-term. The outpouring of support from social media and multinational corporations highlights the impact of recent racial atrocities. But the entire global community should be aware of the historical impact of past protests and compare it to the status quo.
Countless members of the African diaspora have created vehicles to wealth, but currently lack the infrastructure that would serve as a “highway to heaven.” Black communities all over the globe are replete with monetizable ideas; the next step is creating an ecosystem for those ideas to plug into. This involves identifying sources of black capital, convening promising startups, and building a black tech ecosystem that attracts attention from global capital sources instead of chasing it. The black diaspora must aggressively hunt down opportunities to support, hire, and fund our communities or watch as existing systems slowly choke the life out of our participation in future economies capable of changing our collective stars...
“I respect your vision… But when it comes down on you, either you collectivize, or you run like a single solitary rat.”
The memorable heights of black excellence have typically rode upon the back of autonomous black economies. The technologies developed via this excellence begin in necessity but evolved as a result of increases in spare time and cash flow. It involved black producers spending money in their community, training their staff with monetizable skill sets, identifying potential business pivots and spin-offs, and more importantly the replicable creation of black wealth.
“Technology should be the focus because it offers the lowest barrier to entry. I see how Jewish communities are associated with law and entertainment. On the other spectrum I see latin communities associated with farming and construction. What about us? What can diverse communities within the African diaspora collectively identify as niche and build infrastructure around? I say tech. With a laptop, internet, and a stable power grid; a jobless youth can create a billion dollar company, invent an industry, or serve the needs of those around them in a way an outsider could never conceive…”
Pandemic Technology: A Coronavirus Case Study
If necessity is the mother of invention, then it is only natural that technology thrives in trying times. When we think of halting the spread of the Coronavirus, many people may envision the brave nurses, doctors, and scientists on the frontlines. However; in recent times, it is technology that is doing the heavy lifting, Pandemics like the Coronavirus, SARS, and others are pushing infrastructure to its limits and innovation to new heights. To understand the technology forces at play......
July 15th, 2020