Facebook to Get an African-American Board Member…Soon?

Facebook has been on the hot seat as more information comes to light about the role it played in Russia’s meddling in the November 2016 election. The hot seat treatment brought the company’s COO, Sheryl Sandberg, to DC for an exclusive interview with Axios co-founder Mike Allen to discuss the situation and what Facebook was going to do about.

While in town Thursday, Ms. Sandberg visited with the Congressional Black Caucus. Apparently, one of the points of conversation was when Facebook was going to appoint an African-American director. CBC Chairman Cedric Richmond said after the meeting that Ms. Sandberg had committed to adding an African-American to Facebook’s board soon. It doesn’t make sense that no person of color sits on Facebook’s board, granted this applies to much of corporate America. That said, the question now is who would be a good candidate to join Facebook’s board?

Some would immediately think of Michael Powell, president of the National Cable & Telecommunications Association. He has been the flag-bearer for the internet and television industry for the past several years. Before that, he was a member of the FCC, and chaired it for four years. He has a wealth of knowledge on navigating the regulatory landscape and would add a ton of value to Facebook in this vein.

The problem is that Mr. Powell serving on Facebook’s board while heading up the NCTA would be a conflict of interest, and I’m pretty sure he wouldn’t step down from his super powerful position just to be able to join Facebook’s board. Further, Mr. Powell doesn’t have the experience leading diversity initiatives at the scale with which Facebook needs experience. So, Mr. Powell’s not a fit.

There are two things this director needs experience with to move the needle forward at Facebook:

  1. The director needs to understand the media landscape and the regulatory system around it. Increasingly Facebook is being looked at as a media company rather than a social network. Because of that and the outcomes of the Russia-Facebook issue, Facebook could find itself facing increasing regulation to align the company with the rest of the media industry, so they will need someone who knows how to navigate that.
  2. Facebook needs someone with experience pushing diversity at a large organization and who can guide Facebook’s management as it continues diversifying its workforce. Facebook’s annual reports on its diversity numbers show that the company has quite a ways to go and having someone in the boardroom who knows how to get that done is key.

Payne Brown would be a strong fit to join Facebook’s board. He’s currently a managing director at Highbridge Capital Partners, which is a minority partner in Diddy’s RevoltTV. Mr. Brown was a vice president at Comcast where he led strategic initiatives, while overseeing program content, managing relationships with industry counterparts and governments, and standing up the company’s diversity council and leading the development of the company’s diversity philosophy.

While there is government experience on the board in Erskine Bowles, having someone like Mr. Brown who has been successful on the lobbying side of the table in dealing with Congress would be helpful as Facebook’s dealings with Congress on Russia’s election meddling and whether it needs to be regulated like a media company increase.

A counter to Mr. Brown joining the board could be that he’s not a household name and could perplex investors who are trying to put a value to the impact he could have on Facebook’s business. Well, Payne has worked on Wall Street for several years now and I’m sure analysts would easily be able to ask around and get a better sense of the impact he’s had on the media industry. If they don’t get answers on Wall Street, they could just ask Diddy!

A bit of an aside to all this is that it’s fine that Facebook has made a commitment to adding an African-American individual to its board, and that Congressmen like G.K. Butterfield are focused on getting more African-Americans into executive roles in Silicon Valley. But, we have a lot of work to do to build an ecosystem within the black community that could support my daughter building a $100 billion business.

I believe there is enough wealth within the black community today to do this along the startup venture path – pre-seed, seed, series, A, B, C, D, initial public offering, and beyond. That’s what makes the work the folks at Black Girls Code, Precursor Ventures, Cross Culture Ventures, Backstage Capital, Black Wall Street and more exciting because they are more likely to find these folks and get them started along the path.

It would be nice to have a concerted effort from black policymakers, high net worth black people, and black players in the tech space to build an ecosystem around black technology entrepreneurs and provide them with the resources they need to build the future and billion dollar businesses along with it.

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Additional Reading for the Weekend:

  1.  Shonda Rhimes Just Became the Third Black Woman in the TV Hall of Fame
  2. Charles Hudson of Precursor Ventures Filed to Raise $25M for the pre-seed venture firm’s second fund
  3. African startup founders can finally start looking for big-ticket funding nearer home
  4. Lightspeed Welcomes Tara Nicholle-Nelson as Entrepreneur-in-Residence
  5. Backstage Capital acquires The Door to continue funding underrepresented founders
  6. Issa Rae Built a Hollywood Career on Her Own Terms. Next, She’ll Build an Empire

How Does Africa’s Innovation Economy Tap Into Africa’s Wealth?

Yesterday, I had lunch with a friend who is raising a fund for her Lagos-based startup. At one point in our conversation, she shared the effort she has had to go through to get people she has met with in Silicon Valley up to speed on what is happening in Nigeria’s tech space.

This has been a refrain from a number of entrepreneurs and investors who are already tuned in on what is happening in Africa’s innovation economy. Fortunately, the tide seems to be trending towards Silicon Valley getting more hip to what is happening in Nigeria, Kenya, and to a lesser extent South Africa (Cape Town-based Naspers has led some massive investments that I am sure Silicon Valley investors have noticed.)

While we chatted, my mind went to some research I saw this weekend on Africa’s high net worth individuals. Capgemini’s annual World Wealth Report pegs the wealth of the 150,000 high net worth individuals across Africa at $1.4 trillion for 2016. These are people who have at least $1 million in investable assets, excluding primary residence, collectibles, non-durable goods like sweet potato pie, and durable goods like automobiles.

This is serious capital. I wonder what percentage of this wealth has gone into Africa’s innovation economy since 2009. The Capgemini report highlights three industries that are going to drive wealth accumulation globally through 2025 – financial services, technology, and healthcare. There are startups across Africa doing interesting things in all three of these areas, yet the challenges of getting Africa’s wealthy to invest in the continent’s startups has been a conversation for several years now. I think we’re trending to those conversations being fewer and fewer.

There are several people working to build a critical mass of wealthy investors across Africa committed to investing in Africa’s innovation economy, and these initiatives are gaining real traction. Further, some African governments have developed initiatives to support innovation economies within their borders. Two years ago, I watched Something Ventured, and it really got me thinking about how African governments could level up their involvement in Africa’s innovation economy. I’ll share where I’m at on that at some point.

In the meantime, what is your assessment of Africa’s wealthy investing in Africa’s innovation economy?

Bill Janeway Knows a Lot about Technology and Economics

Barry Ritholtz did a fascinating interview with Bill Janeway, Managing Director at Warburb Pincus, a private equity shop whose name you may have seen when Timothy Geithner joined as President a few years ago.

Side note: Warburg Pincus is the largest shareholder in Kosmos Energy, the exploration company that was part of the discovery of the Jubilee oil field in Ghana nearly a decade ago. Wow. Time flies. Check out Big Men if you’re looking for a movie to watch this weekend. 

Janeway draws on economic theory and the history of the US technology sector over the course of the interview. This is one of those interviews I will listen to a couple more times to be sure I caught all the events, people, and companies I should look up, such as Ferdinand Eberstadt. Check out the interview below.

What Happens When the Software for Our Technology-Dependent Lives Breaks?

I opened up my Pocket to develop my latest “Reads” post a few minutes ago, and got the message you see in the image. For five seconds, I felt like my world had fallen apart. That’s not good.

There are so many different ways I can access the news, but have built the majority of my news consumption around Pocket. It has been invaluable as I come across interesting articles over the course of a day, but do not yet have time to read them. When I get a few minutes, I can go to my Pocket app and read an article or two.

Andreessen-Horowitz, a major venture capital firm, operates under a thesis that software is eating the world. Do we really want that? What do we do when the software breaks?

I don’t know. I’m going to bed.

Eric Osiakwan Pushing the Growth of Africa’s VC Space

I thoroughly enjoyed interviewing Eric Osiakwan about his experience building internet infrastructure in its early days in African countries, and the transition to investing in African startups. On top of that, he is pushing to get more Africans in the investing game to support the growth of the technology industry across the continent. Here’s the transcript of our conversation.

New VC Firm To Fund Women-Led Startups

I was glad to see the news about the launch of Valor Ventures, a VC firm led by women and focused on finding women founders. 

Another firm that excites me is the Impact America Fund. Here’s a good interview it’s founder, Kesha Cash, did with the Andreesen Horowitz team. 

Some time ago, I posted First Round Capital’s findings from its 10 years investing in startups. One of its findings was that women-led startups outperformed those led by men. You wouldn’t guess that by the looks of all the startups getting funding for their ideas. 

The VC landscape is dominated by white men, leading to white men getting the lion’s share of funding. As the debate on diversity in the technology industry continues to heat up, firms like Valor and Impact America getting traction is huge.

I was disappointed to see that Valor’s team was all white women. That’s another ongoing debate as the tech industry tries to figure out its diversity problem. 

Nonetheless, this is exciting news and I look forward to seeing what companies Valor funds.   

Girls Killing the Technology Game

Andreessen Horowitz just posted a short interview with four high school girls who recently competed in Technovation 2015. (If you’re opening this in your email, click on the title so that you can see the podcast linked below.)

The winner of the competition was a team from Nigeria! All of the teams are really impressive. Check out their pitches.