firm creates open framework to help vcs and founders address racial inequity

Addressing Systemic Racism: The Racial Inequity Drawdown

Following the publication of Paul Hawken’s “Drawdown” in 2017 – a compilation of actionable steps to combat climate change – Seth Bannon, a founding partner at Fifty Years, initiated a similar project. This new endeavor aimed to tackle the complex issue of systemic racism, ultimately resulting in the creation of the Racial Inequity Drawdown.

A Framework for Change

The company is now publicly releasing this document and “open sourcing” it. The intention is to integrate the framework into discussions surrounding racial inequity, specifically within startup investing and the wider world.

Bannon, like many others, sought to comprehend the ramifications of racism in the aftermath of George Floyd’s death last year. He conceptualized the problem as a multifaceted challenge, comparable in scale and complexity to climate change.

The Genesis of the Drawdown

“We incubated the Racial Inequity Drawdown at Fifty Years because we were enthusiastic about identifying and funding companies that address racial inequity. This approach mirrors our work on the climate crisis and other significant issues – however, it’s particularly challenging due to the issue’s multidimensional nature,” Bannon stated.

Initially, the goal was to develop a resource similar to “Drawdown,” consolidating information in one location. This would aid in understanding the breadth of the problem and evaluating investments through a racial equity perspective.

“We began compiling resources internally, aiming to incorporate racial equity into our investment decisions. It quickly became apparent that the scope of the issue was substantial,” he added.

Building a Comprehensive Framework

This led to a company fellow taking the lead on the project, with the objective of creating a thorough document. The resulting framework is structured around three core pillars: Health & Wellbeing, Equality of Opportunity, and Sustainable Systems.

Each pillar encompasses various facets of racial inequity that require attention. Furthermore, each sub-category provides a detailed problem definition, key terminology, a list of relevant companies and organizations, and identifies areas for future innovation – potentially sparking new startup concepts.

Community Engagement and Collaboration

To expand beyond an internal document, Bannon’s team sought to broaden the initiative. They engaged a group of college students to connect with communities of color and bring the project to fruition.

Elizabeth Poku, a rising sophomore at Princeton, was drawn to the project as a means of challenging existing racial biases. “My aspiration is to repurpose existing systems and structures that historically oppressed individuals, transforming them to benefit those they once disadvantaged,” she explained.

Poku joined the team, contributing to sections of the document, including one focused on the impact of healthcare access disparities on communities of color. The team then collaborated with organizations working on the issue, compiling resources and identifying startups addressing various aspects of the framework.

A Guide for Investors and Entrepreneurs

Bannon emphasizes that investors seeking to prioritize racial equity can utilize this document as a guide. It also signals a firm’s commitment to the issue through resource allocation, as demonstrated by Fifty Years.

“A key aspect for us was defining what racial equity means in practice, and this document provides a strong foundation. Equally important is communicating to entrepreneurs that we value their commitment to racial equity,” he said.

He further clarified, “While this doesn’t guarantee funding, it will certainly be a significant advantage. We are eager to support solutions to racial inequity through technology and entrepreneurship.”

An Evolving Resource

The firm views this launch as a starting point, encouraging others to contribute and expand upon the framework. It provides a tool for stakeholders in the startup ecosystem – entrepreneurs and investors alike – to assess their projects through a racial equity lens.

Fostering Dialogue and Action

“Our primary goal is to initiate a conversation and ensure that racial equity remains a central consideration. This includes empowering community members to connect with and support startups working towards positive change,” Poku concluded.