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4 Tips for Finding Open-Minded Investors

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This story appears in the August 2016 issue of Entrepreneur. Subscribe »

Investors love familiarity. "It's their money, which leads them to play it safe and scour the same homogeneous networks for deals," says Ross Baird, executive director of Village Capital, a nonprofit in Washington, D.C., that trains and funds startups with an altruistic bent, many of them led by women and minorities. Stats tell how rare those companies are: Of U.S. startups that landed an initial round between 2009 and 2014, only 15.5 percent had a female founder, according to CrunchBase. Only 1 percent of funded startups have a black founder, according to CB Insights. So, how to find a more open-minded investor? Baird says to consider these questions.

Pep Montserrat

How do they usually find investments?

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