1. “We can’t afford the risk”
Contrary to conventional wisdom and “pattern recognition,” BCG and others have found that diverse teams routinely outperform their white male peers on both innovation and performance (risk and return).
Despite being excluded from programs like PPP, Kauffman Fellows reported that growing businesses led by people of color and women are positioned to continue to outperform, and Forbes projected, “minorities will see growing opportunities while delivering a bigger success rate for investors.”
2. “There are no high-growth businesses”
The Department of Commerce and the Brookings Institution, respectively, reported that while white men’s businesses are declining, “minority” businesses are growing at 38%, and “youthful minorities are the engine of future growth.”
Morgan Stanley found that venture and private equity investors have persistently failed to capitalize on the “trillion-dollar case for investing in female and multicultural entrepreneurs.”
3. “It’s a niche / we would sacrifice returns”
“You’ve likely missed huge market opportunities by getting stuck in pattern matching — but it’s not too late to turn that around.”
—TechCrunch
4. “There are no investable deals / we have a pipeline problem”
“We want to be early in participating in these new channels of deal sourcing opportunities.”
—TPG [Forbes]
5. “Large conventional funds are safer”
“Small funds under $250M return more than two times invested capital 34 percent of the time; a rate almost six times greater than the rate for large funds.”
— Kauffman Foundation and SVB
Reinventure’s predecessor fund returned 32%IRR.
6. “DEI-focused funds can’t compete with the big boys”
We routinely receive referrals from seed stage investors and entrepreneurs alike who perceive Reinventure as the preferred expansion stage investor, over mainstream VCs.
You can diversify.
Now is your moment.
Reinventure is just one practice in a growing ecosystem of managers focusing on chronically overlooked value creators. Targeted funds of funds, deal sourcing platforms, DAFs, investing circles, etc. are all available to you. Typical and minimum investments range from retail to large institutional.