Here’s what needs to be done to fix tech’s bias problem

The stats say it all. 

Only 1% of venture capital in the U.S. went to Black founders in 2020, and women-led startups received a mere 2% of venture capital funding, said James Demers, senior strategist and trainer at Canadian Equality Consulting, at a Calgary Innovation Week. 

Demers was talking about how mitigating bias when investing in founders — as well as hiring for and managing tech workplaces — can unlock untapped innovation and fuel economic growth.

You’ve probably heard stats like these before, but here’s one more for good measure:

“Diverse teams are 35% more likely to outperform non-diverse teams, boosting revenue and profitability in innovation-driven sectors,” shared Demers, illustrating that investors miss out on significant opportunities when they overlook founders from diverse backgrounds.

“There is one trans millionaire in North America. She runs Formula race cars, but is exceptionally rare. And that’s not because there is a lack of women who are interested in tech. It’s not because there aren’t people of colour who are interested in engaging and bringing that knowledge to the table. This is about opportunities,” he said.

So what’s the solution?

Investor, founder and hiring solutions that can actually make a difference

Investors need to actively seek out and support underrepresented founders by broadening their networks, rethinking evaluation criteria to be more flexible and providing equitable access to resources and funding, said Demers. 

This goes beyond checking boxes, he noted, while also making the case that funding diverse founders is a strategically smart business choice. 

For founders, Demers encouraged proactive engagement with investors and the tech community. Building networks, crafting compelling narratives about their ventures and seeking mentorship are vital steps in navigating the complex world of venture capital. 

And for hiring he said, don’t evaluate candidates solely on how well they perform in an interview, as that may not be an accurate reflection of their true abilities and potential. 

“Are we interviewing that person based on their ability to survive an interview? Because setting them up for success for the interview will give you much better answers.”

Relying too heavily on interview performance can lead to missing out on talented individuals who may struggle with that specific format, especially those from underrepresented backgrounds, said Demers.

Here are some other tips he shared for encouraging inclusion and reducing bias:

• Leverage technology and tools to reduce bias: Demers suggested using software and other tech tools to help identify and reach founders from minority or marginalized groups, as well as when making your business case for diversity-focused funding.
• Celebrate cultural diversity through organizational events and programming: “Fostering inclusion by creating opportunities for employees to share and celebrate their culture.”
• Provide structured onboarding and meeting agendas: “Have an agenda for your meetings. Have a speaking order.” Establishing clear structures and processes can help ensure everyone has an equal opportunity to participate, he noted.

Inclusive, safe workplaces spark the innovation tech needs

Beyond investment and hiring, Demers emphasized the importance of creating workplaces where diversity isn’t just present but celebrated — which in turn sparks innovation. 

“[Some] sectors are really only looking at 50%, or smaller, of the population for its knowledge base,” he said. “Opening these doors means what we could achieve exists within all of us. If we can bring all that into our spaces, it’s actually really exciting.”

A key factor to building inclusive cultures that thrive is fostering psychological safety. Demers pointed to research showing that teams perform better when members feel safe to share ideas without fear of retribution. 

Can you rely on our coworkers at all times? Do you feel psychologically safe enough to challenge each other? Positive answers to these questions is essential to establishing an environment in which creativity and innovation can thrive, he explained. 

Mentorship also plays a pivotal role. 

Demers encouraged leaders to mentor individuals with lived experiences they are not familiar with. 

“Mentor someone from a different background — you will learn as much as they will learn from you.” 

He also encouraged building mentorship relationships with people who will say your name in rooms you’re not in yet.

Finally, Demers urged tech leaders to integrate diversity into every aspect of their business strategy — from product design to customer engagement. 

He highlighted examples of how inclusive innovation has opened new markets and created game-changing products, such as Xbox’s adaptive gaming devices. 

“This was actually designed by their inclusive design training team, with people with disabilities,” he said. “Which gives people access to a whole range of games, a massive market that only Xbox now has access to, because they’ve developed this accessible controller that works with a bunch of different applications.” 

Once again, stories like this illustrate that inclusion is good for business, as well as for the world.

This article was created with the assistance of AI. Learn more about our AI ethics policy here.