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With venture investors committing to funding Black and minority founders, alongside the growing availability of government-backed proposals, such as New Jersey allocating $10 million to a seed fund for Black and Latinx startups , can we expect to see fundamental change? But what about the demographics of the VC firms?
With their unique model, studios create the opportunity to achieve high ownership at a low cost ( see Exhibit A in the whitepaper ), thus mitigating the risk for loss and creating a great opportunity for gains. Studios range from having equity anywhere from 15% to 100% and averaging around 40% of the startups that they found.
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