At Lewis & Clark, we’ve spoken a lot internally about what companies are doing (and have been doing) to contribute to fixing the abhorrent state of affairs when it comes to race in VC and tech generally. Here’s some of the highlights from a series of our recent conversation.

• Board composition: Lead investors have a position of influence when it comes to identifying and hiring board members – particularly independent board members. Having diverse representation on boards is not just the right thing to do, but research has shown that diverse boards simply do better. Investors that have influence here have a responsibility to use it.

• Broadening the role of the “comp committee”: It’s typical for startup boards to have a comp committee that takes care of items like executive compensation, company-wide bonuses, option grants, etc. But high-level compensation is just a subset of the HR needs that board members should be paying regular attention to (and intervening on when appropriate). Institutionalizing this via regular tracking of metrics like gender and race across the rank-and-file of portfolio companies should be a priority.

• Diversifying your network: It’s not a secret that in venture investing (particularly after the seed stage), the vast majority of deal flow that actually culminates in closed deals comes from investors’ networks. This means it’s incredibly important to build strong relationships with folks who both represent groups that aren’t “traditionally” represented in VC, as well as folks who respect the value of diversity and are committed to building their own networks that way.

• Fixing the "top of the funnel": Decades-long, persistent systemic racism means that the top of the deal sourcing funnel is rarely as diverse as it deserves to be. At every subsequent funding stage, the effects of this implicit (and, at times, explicit) bias multiply. While there are certainly things all investors need to do better at their respective stages (including the point above), one of the best ways to bring about significant change at this point is to do the legwork at the earliest of stages: ideation. From the instantiation of our fund, we’ve spent time volunteering with organizations earlier than ours looking to do our part here; we’re doubling down and encouraging others to do so as well.

This is certainly not an exhaustive list, nor will the above solve all of the issues of our industry’s issues, even if applied universally. But it’s a place to start the conversation.

What We’re Reading

Chicago-based M25 has done it again! They’ve just refreshed and relaunched their Midwest Startups platform – check it out! It’s an excellent resource for anyone looking for facts, jobs, and insights relevant to the Midwest.

There’s a surprising piece at TechCrunch breaking down the most recent Fenwick & West report of VC activity over the last few tumultuous months (it’s an industry standard, if you’re not familiar). The ultimate takeaway: Silicon Valley really was largely “business as usual” when it comes to dealmaking during the first few months of the pandemic. There are certainly a ton of questions to ask. To what extent are extensions of recently closed rounds clouding the data? What are the long-term consequences of dealmaking without actually meeting founders in person? Do these trends generalize to VCs and startups outside of Silicon Valley? These are certainly all questions we’ll be thinking about in the coming months.

ICYMI, here’s a fascinating, frightening, and darkly entertaining account of an intense harassment campaign carried out by some of the top brass at eBay in response to critical comments from a tech blog. It’s a masterclass in overreaction.

Deals

Denver-based MycoTechnology – a plant-based foodtech platform built on mushrooms – raised $39M co-led by Greenleaf Foods, SPC, S2G Ventures, and Evolution Partners; other investors included Rich Products Ventures, Tyson Ventures, Continental Grain, Middleland Capital, Bunge Ventures, Seventure Partners, Cibus Investments, and Kellogg's eighteen94 Capital.

Chicago-based Kalderos – an AI-powered pharmaceutical discount compliance platform – raised $28M from investors including Bain Capital Ventures and Mercato Partners.

Chicago-based Augmedics – maker of an AR surgical guidance platform – raised $15M.

Chicago-based Ocient – a rapid analysis platform for large datasets (think exabytes) – raised $15M led by OCA Ventures; other investors included In-Q-Tel.

Atlanta-based Steady – a gig economy job search platform – raised $15M led by Recruit Strategic Partners; other investors included Flourish Ventures, Loeb Enterprises, Propel Venture Partners, and CMFG Ventures.

Boise-based Tackle.io – a software vendor consolidation marketplace – raised $7.3M led by Bessemer Venture Partners.

Austin-based TeleVet – a telemedicine platform for veterinary clinics – raised $5M led by Mercury Fund; other investors included Dundee VC, Atento Capital, GAN, and Urban Capital Network.

Austin-based The Zebra – an auto insurance comparison platform – raised $5M.

Durham, NC-based BIOMILQ – a lab-cultured breastmilk and infant nutrition company – raised $3.5M led by Breakthrough Energy Ventures.

Washington, DC-based Sorcero – an NLP-based technical knowledge sharing platform – raised $3.5M co-led by Leawood VC and WorldQuant Ventures.

Austin-based CognitOps – a warehouse automation platform – raised $3M led by Chicago Ventures; other investors included Schematic Ventures, CEAS Investments, and Churton Ventures.

Austin-based Veros Systems – a continuous industrial machinery monitoring company – raised $2.2M led by Shell Ventures; other investors included Chevron Technology Ventures and LiveOak Venture Partners

Phoenix-based Dovly – a consumer finance credit repair platform – raised $2M led by NFX.

Austin-based Ranch Rider Spirits – maker of ready-to-drink premium cocktails – raised ~$2M led by Heaven Hill Brands.

Chicago-based 4Degrees – a professional networking platform – raised an undisclosed amount led by Harlem Capital.

Funds

Houston-based The Sterling Group – a mid-market PE firm – raised $2B for its fifth fund.

Tampa-based Osceola Capital – a lower mid-market PE firm – raised $125M for its first fund.

Exits & Acquisitions

Chicago based Grubhub — a food delivery platform — was acquired by Just Eat Takeaway for ~$7.3 in an all-stock transaction.

Columbia, MO, based Roo – a self-storage startup – was acquired by St. Louis-based home moving simplification platform Handled.