The Other Diversity Dividend

United States of America

Over the past several years, Paul Gompers of the Harvard Business School, has examined the decisions of thousands of venture capitalists and tens of thousands of investments, and the evidence is clear: Diversity significantly improves financial performance on measures such as profitable investments at the individual portfolio-company level and overall fund returns. And even though the desire to associate with similar people—a tendency academics call homophily—can bring social benefits to those who exhibit it, including a sense of shared culture and belonging, it can also lead investors and firms to leave a lot of money on the table.
Photographer & Videographer Credit: Harvard Business Review
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  • Suraj Sharma
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