VC Portfolio Diversity and Inclusion Audit Checklist

A comprehensive checklist for auditing and enhancing diversity, equity, and inclusion practices across venture capital and private equity portfolio companies, covering leadership, workforce, and operational aspects to foster inclusive growth and innovation.

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About This Checklist

The VC Portfolio Diversity and Inclusion Audit Checklist is a crucial tool for venture capital and private equity firms committed to fostering diversity, equity, and inclusion (DEI) within their investment portfolios. This comprehensive checklist guides investors through the process of evaluating and enhancing DEI practices across their portfolio companies, from founder demographics to workforce composition and inclusive product development. By systematically assessing and promoting diversity and inclusion, VC firms can tap into a broader range of perspectives and talents, potentially leading to more innovative solutions and better financial performance. This proactive approach not only aligns with growing social responsibility expectations but also positions firms to capitalize on the proven benefits of diverse teams and inclusive business practices.

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Industry

Financial Services

Standard

ILPA Diversity in Action

Workspaces

Investment Firm Offices

Occupations

Investment Partner
DEI Specialist
Portfolio Manager
Human Resources Consultant
ESG Analyst
1
Does the portfolio company have a formal diversity training program in place?
2
What percentage of the workforce identifies as a minority?
Min0
Target50%
Max100
3
Are inclusive leadership practices implemented by management?
4
Does the company have defined diversity hiring goals?
5
Please describe the company's strategy for increasing workforce diversity.
6
Are there active employee resource groups (ERGs) within the company?
7
What is the annual budget allocated for diversity and inclusion initiatives?
Min0
Target100000
8
Share any success stories related to diversity and inclusion initiatives.
9
Are there established communication channels for discussing diversity and inclusion topics?
10
What percentage of employees participate in diversity-related events annually?
Min0
Target75%
Max100
11
Is leadership held accountable for diversity and inclusion outcomes?
12
Describe the feedback mechanism in place for diversity and inclusion initiatives.
13
Please provide a brief overview of the company's diversity policy.
14
Does the company track diversity metrics regularly?
15
How many hours of diversity training are provided to employees annually?
Min0
Target20
16
What challenges has the company faced in implementing diversity initiatives?
17
Does the company actively source diverse candidates for hiring?
18
What is the current ratio of diverse hires compared to total hires?
Min0
Target30%
Max100
19
Is unconscious bias training provided for hiring managers?
20
Describe any innovative practices used to enhance diversity in recruitment.

FAQs

The checklist covers founder and leadership team diversity, workforce composition, inclusive hiring practices, diversity in board representation, inclusive product development, and DEI policies and training programs.

VC firms should conduct a comprehensive DEI audit of their portfolio annually, with ongoing monitoring and support for improvement initiatives throughout the year.

Yes, the checklist can be adapted to assess and promote DEI practices in startups at various stages, from early-stage companies building their initial teams to later-stage firms with established workforces.

The audit is usually performed by the VC firm's investment team in collaboration with DEI specialists, either internal or external consultants with expertise in this area.

Diverse and inclusive companies often demonstrate enhanced innovation, better decision-making, and broader market understanding, potentially leading to stronger growth and returns for the fund.

Benefits of VC Portfolio Diversity and Inclusion Audit Checklist

Identifies and addresses diversity gaps within the investment portfolio

Enhances potential for innovation and market expansion through diverse perspectives

Improves risk management by considering a wider range of stakeholder needs

Aligns investment practices with growing LP and public expectations for social responsibility

Positions portfolio companies for better performance and broader market appeal