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by ryanx435 2900 days ago
What's stopping people (who don't meet the criteria for this fund) from hiring a woman of color as their CEO specifically to raise capital from this fund?
6 comments

Fronting is a very common approach to win government contracts so I can’t see why it won't be used here as well.
If the underlying assumption behind the creation of such a fund is correct, the fact that you'd massively decrease your chance of being funded by capital sources outside this one fund.
presumably because you'd need to give up a lot of equity to this woman of color you hire to be the front...

i don't have high hopes for VC funds like this.. seems more like a charitable grant than venture funding..1

You don't have to have an exit if you're a bit more creative with how you extract money out of a corporation you've set up for that purpose. The most ethical is through getting a solid salary paid out to you. Least is outright embezzlement - find a front who doesn't actually have your real name, convince them that the VCs can't know that this is actually your idea so they have to hide your involvement, and disappear with the cash leaving them holding the bag.
Would you?

If minorities have a hard time to get such a job, you probably don't nees that much.

I guess the question is if it's easier to get capital from this fund or to get it from the old boys network.
Why not just self-identify as one of us? Who judges this anyway?
What makes you think hiring to fill a certain minority-quota already does not happening for years?