BDC Report suggests VCs are developing a more diverse workforce but facing retention challenges

In February 2022, the Business Development Bank of Canada (BDC) developed a national diversity, equity and inclusion (DEI) reporting template for Canadian general partners. BDC Capital sent the reporting template to its 71 general partners and their 1,115 portfolio companies. At the end of 2022, 80 percent (57) of the general partners and 49 percent (544) of the portfolio companies had provided responses. The resulting DEI metrics were shared in December 2022. While the results are promising in some respects, the data demonstrates that there is still significant progress to be made on the DEI front, notably with respect to employee retention.
Among the encouraging news is the finding that women and visible minorities make up at least half of new hires at 49 percent and 45 percent of general partners, respectively. Further, in terms of career advancement, women and visible minorities account for at least half of promotions at 72 percent and 53 percent of general partners, respectively. However, the data is less encouraging when it comes to employee retention as women and visible minorities account for at least half of employee departures at 48 percent and 38 percent of general partners, respectively. Given the lack of gender and racial parity among general partners, these numbers are difficult to justify.
Alison Nankivell, Senior Vice President at BDC Capital, offered two possible explanations for the employee retention data. First, the increased level of employee departures could be a symptom of the current competition in the labour market. Second, some general partners may be having difficulties creating inclusive cultures where diverse employees can thrive. Regardless of the reasons, BDC Capital’s report serves as a reminder of the need to improve DEI metrics not only in employee retention but across all areas in the venture capital ecosystem.
Image by https://unsplash.com/@sunday_digital
Authors
Expertise

Insights
-
Technology
CO280 Strikes Historical Deal with Microsoft
Vancouver-based startup CO280 Solutions Inc. (“CO280”) is making strides in carbon capture, focusing on the removal of carbon dioxide emitted by pulp and paper mills across the U.S. The startup… -
Technology
Bench Finds Buyer After Sudden Shutdown
Accounting startup Bench, which abruptly shut down in December 2024 and locked out customers from their accounts, has been acquired by HR tech firm Employer.com. The acquisition will restore access to… -
Technology
Nectir Launches Custom AI Tool to Transform Learning in Schools
Nectir, an educational AI tool, is transforming academic support at over 100 colleges and high schools by enabling educators to create personalized learning assistants tailored to their courses. These… -
Technology
PolicyMe Raises C$30 million to Revolutionize Digital Insurance
PolicyMe, a Canadian digital insurance provider, recently announced the successful close of C$30 million in new funding, building off of its C$3.3 million Seed Round (2020) and C$18 million Series A… -
Energy
Supreme Court of Canada Interprets the Telecommunications Act
In Telus Communications Inc. v. Federation of Canadian Municipalities, the Supreme Court of Canada considered the correct interpretation of the term “transmission line”, as used in sections 43 and… -
Technology
Twelve Labs Develops Enhanced Search Capabilities in Video AI
In the fast-evolving field of artificial intelligence, a new frontier is emerging: video understanding. Jae Lee, co-founder of Twelve Labs, believes that AI models adept at interpreting videos as well…