EthnicMajority

(Gawker.com) The National Venture Capital Association has completed its 2011 census. Now we all know the business of doling out money to tech startups is a pasty one—right? we're all clear on this, yes?—but the association this year trumpets "signs of increasing ethnic diversity." So, take a wild guess at the combined percentage of blacks and Latinos among venture capitalists.

Did you guess two percent? If so, congratulations, you win another several decades of continued de facto exclusion and OMG HOW DARE YOU CALL ME A RACIST push back. After surveying 600 VC professionals, NVCA found the industry to be 87 percent white, 9 percent Asian, and 2 percent black or Latino. The low numbers of blacks and Latinos apparently precluded even breaking out separate tallies, even though these are the two largest U.S. ethnic groups after whites, constituting 16 and 12 percent of the overall national population, respectively.

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(BET) A federal appellate court in Chicago agreed Wednesday to hear the case of some 700 African-American financial advisors who have filed a class-action lawsuit against Merrill Lynch claiming the brokerage firm discriminated against them in promotion, compensation, client assignment and resource allocation.

The brokers’ legal crusade began in 2005, and has experienced a number of courtroom setbacks, most recently when the U.S. Supreme Court declined to review the case in October. One of the issues was whether the case could be certified as a class-action suit. On Nov. 16, the U.S. Court of Appeals for the Seventh Circuit agreed to begin hearing the case in Chicago, probably early in 2012.

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(CNN) Last night CNN aired Soledad O’Brien’s “Black in America: The New Promised Land: Silicon Valley,” which follows eight black tech entrepreneurs trying to raise equity capital in Silicon Valley. As it traces their stories, the documentary also interviews industry insiders about the dearth of tech startups led by black entrepreneurs, highlighting a CB Insights study that shows less than 1 percent of all venture capital investment went to digital startups with African-American founders in 2010.

Tomorrow Rutgers University will host a two-day summit that aims to collect ideas on encouraging investment in minority-owned businesses in struggling urban areas. Entrepreneurs, angel investors, and policymakers, including Newark mayor Cory Booker and members of The America21 Project will discuss the documentary. They’ll also listen as a selection of entrepreneurs present their businesses to a panel of venture capitalists and discuss how to develop an angel fund and a national network for minority entrepreneurs in urban areas.

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(Huffington Post) Blacks will have more money to spend on goods and services, according to a recent report.

The State of the African-American Consumer Report found that black buying power is projected to reach $1.1 trillion by 2015, The Louisiana Weekly reports.

The study, which focuses on black spending, media habits and consumer trends, reported an increase in the amount of blacks attending college or earning a degree to 44 percent for men and 53 percent for women. It also found an increase in the number of African American households earning $75,000 or higher by almost 64 percent.

"By sharing, for example, that African Americans over-index in several key areas, including television viewing and mobile phone usage," said Susan Whiting, vice chair of information and analytics company Nielsen. "We've provided a better picture of where the African American community can leverage that buying power to help their communities."

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(CNN) Wayne Sutton has been asking venture-capital investors and Silicon Valley executives a question that's not often broached here in the epicenter of the technology industry:

"Why aren't there more black people in tech?"

The vast majority of top executives at the leading Silicon Valley tech firms are white men. Women and Asians have made some inroads, but African-American and Latino tech leaders remain a rarity. About 1% of entrepreneurs who received venture capital in the first half of last year are black, according to a study by research firm CB Insights.

This lack of diversity in Silicon Valley made headlines last month when influential tech blogger Michael Arrington, in an interview for CNN's upcoming documentary "Black in America: The New Promised Land: Silicon Valley," said, "I don't know a single black entrepreneur." Arrington later recanted the statement, saying he was caught off guard by the question, but the sensitive issue sparked a public dispute between the newly minted venture capitalist and CNN's Soledad O'Brien.

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(Marketwire) Cross-culturalism, the current trend in multicultural marketing that stresses the blurring color lines in America, fails to engage African Americans, according to an unprecedented and comprehensive exploration of African American consumers by Burrell Communications ( www.burrell.com ).

The study, conducted in conjunction with Burrell's 40th anniversary and named Burrell: Project 40, delves deep into the lives of African Americans, identifying themes in lifestyles, interests, cultural beliefs and perceptions of African Americans in the media. With more than 500 in-person interviews across 11 major markets, Burrell: Project 40 gives a true portrait of the average African American consumer. Over 80 percent of Burrell's respondents had never participated in a market research project before, so the study gives voice to the unheard and untapped majority of black consumers in a way that's never been done before.

"Most of the research conducted in the African American community is done with upper and middle-class consumers — who don't necessarily reflect the attitudes, behaviors and opinions of the majority," said Fay Ferguson, co-CEO of Burrell Communications. "Burrell: Project 40 gives a more accurate picture of a population that is often taken for granted."

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(CNN) Weeks ahead of the premiere of a CNN documentary focusing on diversity in the tech industry, the charged issue is already generating sparks. A heated debate broke out on Twitter Wednesday night after a preview screening of Black in America 4.

Blogger-turned-investor Michael Arrington ignited a controversy with his comments about the visibility of minority-led companies. In the documentary, which airs November 13, Arrington talked about his difficulties finding African-American entrepreneurs to launch their ventures at his TechCrunch Disrupt conference — and suggested he would accept almost any black entrepreneur, regardless of merit.

"There's a guy, actually, his last company just launched at our event, and he's African-American. When he asked to launch — actually, I think it was the other way around. I think I begged him," Arrington told CNN's Soledad O'Brien.

"His startup's really cool. But he could've launched a clown show on stage, and I would've put him up there, absolutely," Arrington said. "I think it's the first time we've had an African-American [be] the sole founder."

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(BET) Another historic Black-owned newspaper has let some of its own go.

The executive editor, news editor and other staffers of the Chicago Defender were laid off this week as one of the nation’s oldest Black-owned newspaper tries to stay afloat.

The newspaper is months behind on its rent and, in response, was forced to lay off six of its staff. Of those given pink slips were the only two editors left of the diminished staff of 18 and an accounts receivables staffer. Additionally, the paper’s only photographer was moved from full- to part-time.

“We’re facing the same struggles as everyone else,” publisher and president Michael House told the Chicago Sun-Times.

The 106-year-old weekly isn’t the only African-American newspaper trying to stay afloat. The New York Amsterdam News  suffered a drop in circulation of 44 percent in just one year, from 2009 to 2010.

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(Huffington Post) The recent death of New York University law professor Derrick Bell, a tenacious black champion of "critical race theory," and a recent report that the Supreme Court may take up a new challenge to affirmative action on campus both mark the decline of racial "identity politics" and "diversity" strategies that preoccupied America before 9/11 and the current economic and political crisis.

Not even racism's raw eruptions against the first black President or its grinding ubiquity in the lives of countless non-whites (especially young black men) caused the crisis that's gripping this country. And not even the staunchest anti-racist activism, necessary though it surely is, will get us out of it.

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(Eureka Alert press release) It has been well-documented that minorities are subject to discrimination in product pricing and customer service. What is startling is the result of a new study professors at the USC Marshall School of business in conjunction with University of San Diego's School of Business Administration, that shows that sometimes ill-treatment can make African-American consumers voluntarily pay more for goods and services than they would normally, as well as pay more than their Caucasian counterparts.

Aarti S. Ivanic, assistant professor of marketing at the University of San Diego's School of Business Administration; and Jennifer R. Overbeck, assistant professor of management and organization along with Joseph C. Nunes, associate professor of marketing at the University of Southern California's Marshall School of Business, set out to understand inequities in transactions. In their study, "Status, Race and Money: The Impact of Racial Hierarchy on Willingness-to-Pay," forthcoming in Psychological Science, the researchers found that African-Americans who felt their status was threatened by poor service because of their race were willing to pay more for products and services to assert their social standing.

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