Standard Overview
The Diversity VC Standard is an assessment and certification program for funds looking to understand the state of D&I at their fund and improve their performance over time. The Standard assesses funds across four different buckets: Recruiting & HR, Internal Policy & Culture, Dealflow Sources, and Portfolio Guidance. Following a 1.5 hour assessment, in which each firm must provide evidence of various policies and programs, funds are provided with a dashboard outlining their performance across these four policy areas. Firms that meet a predefined set of criteria receive certification under the Standard, which indicates both a commitment to D&I and a position of leadership within the industry.
However, the Standard is much more than a feel-good, ‘check-the-box certification exercise. In addition to receiving detailed D&I performance data, the Standard provides funds with a customized set of evidence-based recommendations and best practices that will assist them in becoming a more diverse and inclusive investor. Funds are encouraged to work with the Diversity VC program managers and program partners to further refine their D&I strategy post-assessment. Additionally, funds certified under the Standard will be provided with access to exclusive learning opportunities on an ongoing basis. These events, which include program-specific panels, ask-me-anything sessions with leading investors, and policy workshop sessions, provide funds with the additional support and know-how required to bridge the D&I gap within their firm.
Key Benefits
Funds that agree to undergo assessment against the Standard benefit from the program in several distinct, value-add ways:
Objective D&I Performance Evaluation
Upon receiving their customized dashboard, funds are provided with an objective performance score across each policy area. The dashboard includes living benchmark scores that summarize the aggregate performance of certified funds in a similar geography and of a similar size. These scores provide funds with an understanding of their performance relative to their peers and highlight which specific areas funds should invest time, energy, and resources into as they look to become more diverse and inclusive.
Access to Evidence-Based Recommendations
In addition to performance scores, the Standard also provides funds with a bespoke set of recommended programs, policies, and best-practices that are based on their unique organizational context and investment goals. Recommendations provided by the Standard have been vetted and validated by industry experts and include additional resources, how-tos, and guidelines that will assist funds as they look to implement these specific solutions.
Advanced Knowledge Sharing Amongst Funds
In keeping with the collaborative and generative nature of the program, the Standard leverages its network of certified funds to and share best practices across firms. Funds are empowered to share information related to their unique organizational or investment competencies, which can then be provided to other funds looking to address similar issues. The Standard Program Managers regularly connect funds with one another to discuss specific issues facing heir organization, facilitating the learning process and providing funds with the opportunity to interface with one another on a regular basis. This cycle of reciprocity strengthens individual firms, the program, and the industry itself.
Third-Party Credibility and Validation
By any measure, the Standard is a difficult certification to achieve. Thus, the value of receiving certification under the Standard is incredibly high as it signals to founders, LPs, and prospective employees that your fund is truly committed to D&I at every level of the organization. Funds that receive certification have been proven to ‘walk-the-talk’ and reap the benefits of being recognized as a leader in the industry.
Conclusion
Since launching in September, the Diversity VC Standard has certified over 50 funds that have a presence in more than 15 countries across the globe. As the Standard continues to grow, so will D&I-related expectations from employees, founders, LPs, and the public. So the question remains: the future of the venture capital industry is inclusive, are you?
