The Venture Capital Dilemma: Who Gets Funded and Who Gets Left Behind

Praise Chiedozie
SXSX 2025 - SJMC Student Media Coverage

If you’re an entrepreneur, investor or anyone curious about the future of venture capital, this is the panel you can’t afford to miss.

As SXSW 2025 approaches, industry leaders, investors and entrepreneurs will gather to explore the complexities of venture capital in the panel discussion To Seed or Not to Seed: Exploring Inefficiencies in Venture Capital. This highly anticipated session will delve into the structural challenges within the VC ecosystem, particularly the barriers faced by underrepresented founders. Top industry minds will break down one of the most pressing issues in the startup ecosystem: Why does so little VC funding go to underrepresented founders - and what can we do to fix it?

Kwame Boler, a seasoned entrepreneur and investor, will take the stage to shed light on the nuances of venture capital, its inefficiencies, and the untapped potential of marginalized founders. As the co-founder of Spritz, a software platform designed for home service professionals, Boler knows firsthand what it takes to secure funding and why so many brilliant founders never get the chance.

“Venture capitalists manage billions, yet less than 1% of small businesses receive VC funding,” Boler said. “For underrepresented founders, that number is even smaller.”

This session is not just about identifying the problem, it is about real solutions.

Entrepreneurs will gain insight into what investors look for in early-stage companies, how to position their startups to attract funding and strategies to navigate investor biases and network limitations.

The venture capital system is designed to fuel innovation, yet it often operates in ways that limit access to capital for diverse founders. Investors tend to fund companies that align with their existing networks and historical successes. This creates a cycle in which the same types of founders receive funding while others struggle to secure even an initial investment.

Investors will discover why diversifying their portfolios is not just the right thing to do, it is the smart thing to do. The discussion will provide data-backed insights on how underrepresented founders often yield higher returns on investment and explore new funding models that reduce inefficiencies in venture capital.

For startup enthusiasts and advocates, this panel will offer a behind-the-scenes look at the forces shaping the future of funding, the broader economic impact of venture capital and ways to support a more inclusive and equitable startup ecosystem.

“This panel is about understanding why and more importantly, how we change it,” Boler said.

Venture capital shapes the businesses that shape the world. If the goal is a more inclusive, innovative and profitable startup landscape, the conversation starts here. By attending this panel, you are becoming part of the solution.

Do not miss this opportunity to gain experience from leaders who are enthusiastic about empowering others to succeed. It’s scheduled for March 8 at 2:30 p.m. in Salon G at the Hilton Austin Downtown. For more details and to register, visit the SXSW 2025 schedule page.