There is a well-documented concentration of women and people of color in small, high-risk, low-margin industries which has hampered the positive effect that entrepreneurship has on wealth. As such, the fund is focused on growing middle market companies. Larger, higher-margin businesses have higher survival rates and can create more wealth than start-up businesses which have higher fail rates. The data shows that diverse owners tend to hire more diverse employees and vendors, and pay them more, further impacting wage gaps. Finally, scaled diverse-owned businesses are needed to round out the ecosystem, securing a pipeline of diverse buyers for diverse legacy and venture-funded companies and also strengthening the future supply chain. As the U.S. becomes majority minority, innovation will be slowed if diverse-owned businesses remain hyper small.