We examine the dilemma of ethnic investors in using ethnic network ties to invest by extending the ‘ethnic enclave' concept to incorporate two dimensions: social network and social status. Our analysis of the first round of venture capital funding in Silicon Valley from 1976 to 2004 shows a...

We explore if co-ethnicity between a VC investor and an entrepreneur influences the investor’s assessment of the investment potential of the venture. To do so, we use a proprietary dataset from TechCrunch Disrupt, a startup fundraising competition. Our results do not provide evidence that...

Because the traditional venture capital industry is less likely to invest in minority-owned businesses than in businesses owned by white entrepreneurs, two types of specialized venture capitalists have emerged: minority-focused venture capitalists (MVCs), who invest primarily in minority-owned...