The VC Fund Closing Equity Gaps — and Making Money

HBR IdeaCast

Much of the business world has bought into the idea of stakeholder capitalism. But Freada Kapor Klein and Mitch Kapor say that doing some good by doing well isn’t enough when the business impact still creates negative effects and broader disparities overall. Freada, with a background in social justice and empirical research, and Mitch, an entrepreneur and investor who got his start making early spreadsheet software, strive to invest in ventures that close the distance between those with wealth and privilege and those without. The founders explain their metrics and decision-making process at Kapor Capital. The profitable firm explicitly invests in tech startups serving low-income and underrepresented communities. Freada and Mitch wrote the book Closing the Equity Gap: Creating Wealth and Fostering Justice in Startup Investing.