Last week's SXSW The 45 finalists for the pitch contest to be held in March have been announced. This list was as expected in many ways. There were quite a few AI startups and a number of California-based companies. However, it wasn't 100% business as usual. This list had a much more diverse group of founders pitching than the average VC portfolio.
While it has certainly never been a completely diverse group, the number of women and founders of color is notable enough to be notable. This is not a one-time event either. Many pitch competitions, both large and small, tend to showcase a more diverse segment of the venture market, disproportionate to the representation of these groups in funding data.
Pitch contests are deeply ingrained in the fabric of the startup ecosystem and help level the playing field for founders who are underrepresented in many ways. We offer an alternative funding avenue to friends and family rounds. It also puts underrepresented founders in front of potential investors and venture capitalists who probably wouldn't have seen their proposal otherwise due to bias or lack of a shared network. It may also be a trigger. But of course it's not without its disadvantages.