The Diversity Term Sheet Rider
for Representation at the Cap Table
More than 35 venture firms have adopted the Diversity Rider and its call to action focused on increasing opportunities and access to wealth in the venture capital industry for underrepresented communities such as Black, LatinX, female, and LGBTQ+. Firms adopting the rider language pledge to bring folks from these communities into deals as co-investors, thereby instantly increasing diversity at the core of the deal-making process. The rider language is as follows:
In order to advance diversity efforts in the venture capital industry, the Company and the lead investor, [Fund Name], will make commercial best efforts to offer and make every attempt to include as a co-investor in the financing at least one Black [or other underrepresented group including, but not limited to LatinX, women, LGBTQ+] check writer (DCWs), and to allocate a minimum of [X]% or [X] $'s of the total round for such co-investor.
Launched in August 2020 and led by Alejandro Guerrero of Act One Ventures, we encourage all venture firms and diverse check writers to join the movement. By pledging your support, you are committing to using the rider language in every term sheet.
Join the Movement!
At DiversityRider.VC, you can see the full list of venture firms and industry partners who are using the Diversity Rider in every deal. This is also the place for check writers to send us their info so we can include you in deals, and for venture firms to publicly commit to using the rider language in every term sheet.