The venture capital industry doesn’t have the best track record when you’re talking about ethics.
Like most professions involving power and wealth, venture capital also sometimes attracts people for whom doing the right thing isn’t a concern. Limited regulatory oversight and a lack of transparency mean that investors can often get off scot-free for not factoring ethics into their investment philosophy.
We’ve all seen startups happily taking money from investors who back companies that have a negative impact on the climate or broadcast misogynistic rhetoric. Sometimes, we also get venture firms raising capital from foreign governments that don’t have the best track records surrounding issues like human rights.
But not every investor is a bad person, of course, and it seems as though the industry is taking steps to clean up its act — albeit slowly. Startups and investors are increasingly paying attention to what kind of people they want
