U.S. venture capitalists are more likely to invest in start-ups with executives of the same ethnic origins as themselves, and these investments tend to bring superior payoffs, benefiting from close VC-manager communication and coordination, say Deepak Hegde of New York University and Justin Tumlinson of the University of Munich. About 84% of U.S. venture capitalists are of Anglo-Celtic or European origin, a proportion that nearly reflects these groups’ share of the country’s population. 3.74% and 2.96% of U.S.-based VC partners are of Indian and Chinese origin, respectively, about 6 and 4 times these ethnic groups’ share of the population.

Source: Does Social Proximity Enhance Business Partnerships? Theory and Evidence from Ethnicity's Role in US Venture Capital