Share a brief overview of your mission and vision for VC Include.
The VCI Fellowship is doing something that has not been done before, which is to source and support high-quality Black, Latin X, Indigenous people of color (BIPOC) led fund managers, or “emerging managers” that are raising their first fund in the VC and Impact/ESG Investment space. We are engaging these new managers whether they are coming from another fund, have a strategy that they have expertise in as an operator, or whether they're angel investors that have deep experience in a particular sector. We’re dedicated to helping the Fellows grow their funds from Fund I to Fund IV and V.
Data becomes important when we look at diversity and inclusion - metrics are essential because we know that asset allocators historically have trouble identifying diverse managers, which is typical because the asset allocator (LP) and asset manager (GP) ecosystem is 98%, white men. There’s an opportunity cost there because diverse managers tend to find great companies that happen to be diverse, and outside of the “traditional investment industry.” There are massive alpha generation opportunities waiting to be captured, both domestically and internationally.
What we're doing with the VCI Fellowship is encouraging first-time managers to establish themselves in a way that signals their readiness to the investor community. We then engage asset allocators, whether institutional investors or individuals or family offices and foundations to think differently about these alpha-generating opportunities. The Fellowship itself is an excellent advantage for LPs that have partnered with us to see a cohort of new managers in one place.
How is VC Include structured?
There are three core parts of VCI. On the for-profit side, we first launched VC Include in 2018 as a curated network of 500+ women and BIPOC emerging managers in the Impact Investment and VC space globally. The platform engages Fund I, II, II managers along with PE and RE funds, many of which already have track records. We’re currently expanding our capacity to engage our pipeline of managers across more asset classes, given the increasing LP interest in our niche strategy.
On the non-profit education and training side, we built the VCI Fellowship program as a response to the needs that many emerging fund managers have,
As a result of our work, we've had a lot of interest in asset allocators wanting us to start a vehicle to invest in the best-in-class funds that we're already supporting, which we are exploring as the third pillar of our offering.
In December, you announced the inaugural VCI Fellowship for BIPOC first-time fund managers. Tell our readers more about what incoming fund managers can expect from the program.
At the end of February, VC Include will announce the 10 to 12 funds that will go through a nine-month program. It's a bespoke program designed for the Fellows selected, providing back-office support, knowledge exchange, ESG integration, and peer-to-peer learning. We provide connections to some of the largest asset allocators and in the US and in the world to share expert advice around how to design their fundraising strategy for the long term. We also provide mentorship and professional development for the Fellows.
On our blog, you can read Bahiyah's full thoughts on:
- The VC industry challenges VC Include is taking on with their program
- How Bahiyah and her team utilize DocSend to protect their content
- How organizations can support VC Include and the VCI Fellowship
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