U.S. Lawmakers seeing a problem
A problem in crypto industry development
According to some U.S. lawmakers in the House Financial Services Committee,
The lack of diversity in the financial technology space have an impact
It can be hurting many sides
Certainly, including companies’ bottom lines.
Unfortunately, according to Stephen Lynch,
Venture capitalists tend to invest in companies
Which predominantly white male leadership,
While women and people of color remain in the waiting room,
In a virtual hearing a moment ago,
They discuss about “Combatting Tech Bro Culture,”
U.S. lawmakers and witnesses uncover how
Women and people of color were
Underrepresented in leadership positions
In the financial technology industry, including crypto firms.
Thereafter, Massachusetts Representative Stephen Lynch cited data,
There is only 2% of venture capital funding,
Went to firms in which the founders were women,
While only 1% went to those with black founders,
And 1.8% for Latinx.
Moreover, According to Lynch and some on the committee,
This trend suggested an “old boys club” culture in companies
Including those involved with cryptocurrencies,
There is a white male supremacy
Then, they claimed that many firms seemingly less deserving of funding,
Were able to bring in money more easily
Due in part to relationships between leadership.
In addition, Lynch said;
“While lack of diversity is a trend in almost every industry that venture capitalists invest in,
it is particularly troubling in the fintech space,”
Moreover, he added that;
“The largest fintechs, including digital banks, payment processors, and cryptocurrency providers, actually market their products to women and people of color.
Yet when we look at the founders and leadership teams, they clearly do not reflect the communities that they claim to serve.”