According to a new study, Black people and other people of color are leading the new wave of investors.
“There is a new, emerging, distinct and more diverse audience getting involved in self-directed investing,” a report by consultancy BritainThinks in conjunction with the U.K.’s Financial Conduct Authority reads.
The report adds that the new wave of investors is younger, more likely to be from a Black, Asian, or other non-white background and more likely to work in administrative or unskilled labor roles or unemployed.
These younger, more diverse traders are often heavily impacted by trends on social media.
“They are particularly likely to use newer investment apps and lean on more contemporary media (e.g. YouTube, social media) for investing advice, tips and news. They are also swayed by the frequency of which they hear about certain opportunities on these apps or how engaging the content or influencer is,” the report adds.
A poll in the U.S. by Morning Consult echoes the U.K. survey’s results, revealing that 50% of Hispanic, 40% of Black, and 42% of student respondents said the GameStop incident had inspired them to get into retail trading, according to the poll from Jan. 29 and Feb. 1, compared to 25% of white student investors.
This week, Bevy, the company that powers community sites like Salesforce Trailblazers and Google Developers, announced it had raised a $40 million Series C.
The company attributes a considerable chunk of its success to its Black investors. The investment included 25 Black investors representing 20% of the investment.
Kobie Fuller, general Partner at investor Upfront Ventures, Bevy board member and Valence co-founder, has worked hard to bring more Black investors to the corporate table.
“For me, it’s about how do we get more Black investors on cap tables of companies early in their lifecycle before they go public, where wealth can be created. How do we get key members of executive teams being Black executives who have the ability to create wealth through options and equity. And how do we also make sure that we have proper representation on the boards of these companies, so that we can make sure that the CEOs and the C suite is held accountable towards the diversity goals,” Fuller said via TechCrunch.
Last year, Valence launched The Board Challenge alongside Altimeter and Theboardlist, a movement to improve the representation of Black directors in corporate U.S. boardrooms. Companies who participate pledge to appoint a Black director within the next year.
The current influx of fledgling investors is cultivating a daring new generation of corporate investors.
The future looks bright.