[viiralvx]

Black male here, aged 18-25, Computer Science and Design student in my final semester of University. The roadblocks from a racial perspective is lack of resources and education, there is a fair amount of poverty within black America. Did you have access to a computer growing up? Maybe you had one or two in your house? Then you may have been able to learn more about programming from a younger age, or maybe you had a computer lab in your school...On the other hand, maybe you are also assumed to be inadequate by society because of your skintone, you are automatically stereotyped to be unintelligent or a subpar developer. Those are the roadblocks we have to face, whether it stems from society or socioeconomic status, we have to work twice as hard to prove ourselves in America.

[coffeemug]

I'm a white startup founder in SV.

Systematic discrimination due to unequal access to infrastructure really, really sucks for the black community as a whole, but if you managed to overcome it as an individual there are multiple interrelated reasons why you have a massive advantage in startups/tech that you probably aren't aware of yet.

Firstly, the market is ruthless. You can't lie to yourself or others in a startup -- the thing you're doing really has to work, so the decisions you're making have to be right. You're white, had a great education, and a well-padded resume? If you don't make precisely the right choices, the market couldn't care less, your company will die. Now, white well educated people with well-padded resumes will probably have easier access to venture capital, but that brings me to my next point.

In my (totally unscientific) experience, skin color, education, and experience has no correlation whatsoever with fluid intelligence (essentially, how well you make decisions without knowledge). In a big company, fluid intelligence doesn't really matter all that much -- the culture is well established, you aren't that important, and if you can just play ball the way everyone else does, you'll do ok. Not so in a startup. In a startup you're dealing with completely new territory, so you have to figure things out from scratch, all the time. You might as well take your knowledge, and your experience, and your education, and throw it all away because it will make a zilch of difference. Fluid intelligence is everything because you have to figure everything out from scratch.

All the white, well-educated, experienced young men who have relatively easy access to VC capital? Without fluid intelligence and wits about them, they'll just burn through it and be left with nothing at the end. The market is ruthless -- it doesn't care. So you're on equal footing.

Finally, the space is hyper-competitive and even in a recession there is too much capital chasing too few good ideas. All those white, traditional, middle aged male VC partnerships really need a win. And I mean really, because if they don't get one they won't raise the next fund, and if they don't raise the next fund they won't be able to pay property taxes and their kids's private school tuitions, and they really, really don't want to end up there. Don't like black people? Have unacknowledged bias? Too bad -- your kids are going to public school next year. So if you come in with a killer idea and the seeds of a working business, you bet they'll invest. The pressure's too high not to. They might care what you look like, but the market doesn't care about them. The market is ruthless and indifferent, and forces them to act ruthless and indifferent, because if they act on their prejudices their fund will die.

This is getting a bit long, so here's my TL;DR: if you've been discriminated against your whole life and want to start a company, don't get discouraged. The market is ruthless and indifferent -- it doesn't care about you, or me, or anyone. For you, that's an advantage. Build something people want and you will be rewarded.

[hkmurakami]

I don't disagree with your premise about fluid intelligence, especially since the hands-down, no-question, smartest person I know is my college roommate, who happens to be black. But I do think that you are leaning quite far towards the idealized perception of Startup results being largely meritocratic. I would like to offer a counterargument.

It is widely established that the more similar someone is to you, the more likely you are to "connect" and establish rapport and understanding with that person. Like you alluded to, this is at least part of the reason why "white, well-educated, experienced young men have relatively easy access to VC capital". VC partners are predominantly well-educated caucasian folks, along with a significant minority of South Asian, East Asian, and Middle Eastern partners. The partners, even the ones trying to fight their biases, will have a natural inclination to connect and understand entrepreneurs that are similar to themselves. I am absolutely guilty of such psychological forces myself, as much as I hate to admit it.

Additionally, we have to look at sales. The people you are going to be selling to, whether it be fortune 500 CIOs or SF startup founders, again are predominantly caucasian. Like with the VC situation, all things being equal, you are more likely to "connect" with your point of contact if you have a lot in common with them. If you are starting a B2B SaaS company, Sales is even more critical than the money you raise from VCs. VCs will be much more inclined to actively fight their biases in order to find the best investments, since so much is on the line for them. I don't think you can say the same thing, or at least not nearly to the same extent, for many of the people you would be selling to. Statistically, it is thus advantageous to be caucasian.

Just being smarter and more capable may not be enough when your customers' psychology is hard-wired to be against you, even if they are not conscious of it. Perhaps this is less of an issue if you are building something that does not involve a face to face sales process on a frequent basis. But the existence of such forces cannot and should not be forgotten or overlooked.

[sheri]

> Now, white well educated people with well-padded resumes will probably have easier access to venture capital, but that brings me to my next point.

Isn't this really the key here? I agree with your other arguments about ultimately needing to have fluid intelligence etc. But assuming two people (one white, one black) have the same amount of intelligence, smarts etc, but one raises $10 million from Sequoia and the other doesn't. That pretty much makes the difference between succeeding and failing. There are ideas which are so world-changing or brilliant that the market and VC's just can't ignore their eventual prominence (Google maybe?). There are other ideas which need lots of capital and talent injection in order to nurture them to the point where they are big.

[coffeemug]

Of course! But in the startup world you get to pick your market, your product, your idea -- everything. If you don't have access to capital, don't pick an idea that requires a large capital injection before product/market fit because that's where you have the biggest advantage. You get to pick your battlefield here, and if you're smart you'll pick one where you have the advantage.

Once you get to product/market fit, you'll get capital no matter who you are or where you come from. The market pressure is too strong for people not to invest.

[gordjw]

Thanks for your response mate. I'm not American, so it's hard for me to tell what's going on in your society. My parents were fairly poor, although they never really let us kids feel like it at the time. But yes we did have a computer at home.

I had some other comments, but the way you put this has really made me rethink them. I'll just say that if you make it to YC, then you're clearly doing something right.

[viiralvx]

Glad that I could offer my perspective, I'm hoping I am successful enough of an entrepreneur to get into YCombinator in the future, but I'm excited to see the diversity in new companies that get into Ycombinator.