The Kapors raise the bar for tech diversity

[Commentary] Mitch Kapor, one of the co-founders of Lotus, and his wife, Freada Kapor Klein, who for years have been on the forefront of the issue of tech and diversity, said they will spend $40 million to address the structural inequities that make it hard for African-Americans and other groups to become successful tech entrepreneurs.

Their approach is not just wonderful but impressive. They don't plan to just give money away, but tackle what they see are the key issues that have kept certain groups outside of the tech industry. Chief among them is access to capital. Over the next three years, Kapor Capital, the family's venture firm, will invest $25 million in technology startups. At least half of the companies it invests in will have founders from groups who have had low representation in tech, such as African-Americans, Latinos and women, Mitch Kapor said. In addition, tech entrepreneurs who receive investments will be required to create a "diversity plan," he said. The firm is in the process of interviewing for a portfolio services director to help the entrepreneurs do that. The plans will vary, but companies would set hiring goals that are also tied to firms' business goals, he said.