For Subscribers

Money Buzz 12/03

The state of VC investments in minority-owned firms, the rising cost of audits and accounting, and more

By Jennifer Pellet • Dec 1, 2003

Opinions expressed by Entrepreneur contributors are their own.

Minority Rule
VC investments in minority-owned firms, often considered charitableor public relations endeavors, actually realize competitive yieldsand similar risk levels as those made in mainstream ventures. Sosays the recently released Minorities and Venture Capital,an in-depth study of 24 funds.

"The results suggest that based on levels of returns andrisk, [minority venture] entrepreneurs should be able to seekmainstream financing," says William Bradford, professor offinance and business economics at the University of Washington,Seattle, who partnered with Timothy Bates, professor of economicsat Detroit's Wayne State University, to conduct the study."For the decade ending in 2000, mainstream VC firms earnedrates of return averaging 20 percent-just less than the 24 percentaverage return for the 117 investments made [in minority companies]by participating firms."

Continue reading this article — and all of our other premium content with Entrepreneur+

For just $5, you can get unlimited access to all Entrepreneur’s premium content. You’ll find:

  • Digestible insight on how to be a better entrepreneur and leader
  • Lessons for starting and growing a business from our expert network of CEOs and founders
  • Meaningful content to help you make sharper decisions
  • Business and life hacks to help you stay ahead of the curve

Related Topics

Editor's Pick

Have More Responsibilities at Work, But No Pay Bump? Use This Script to Get the Raise You Deserve.
Black and Asian Founders Face Opposition at All Levels — Here's Why That Has to Change
Business News

The Scam Artist Who Robbed Backstreet Boys and NSYNC Blind. 'Some of the Guys Couldn't Pay Their Car Payment.'

In the 1990s, Lou Pearlman made millions creating the Backstreet Boys and NSYNC. It was all a giant Ponzi scheme.

Thought Leaders

5 Small Daily Habits Self-Made Millionaires Use to Grow Their Wealth

We've all seen what self-made millionaires look like on TV, but it's a lot more subtle than that. Brian Tracy researched what small daily habits these successful entrepreneurs adopted on their journey from rags to riches.

Marketing

How AI Writing Tools Like ChatGPT Can Make Marketing Easier

With the explosion in popularity of Open AI's ChatGPT tool, it's not a shock that artificial intelligence is the talk of the business world. Here's how you can use it to make marketing cheaper and easier this year.

Growing a Business

How to Build a Reputation That Will Become a Real Asset for You

Here are a few tips on building a personal brand and reputation that sets you and your business up for success.