Cultural disconnect

Black entrepreneurs have a harder time gaining traction in Silicon Valley

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Sandreka Williams, a stylist at A Hair Fetish on Piedmont Ave., signed up with Mayvenn
GUARDIAN PHOTO BY AMANDA RHOADES

CULTURE

Diishan Imira grew up in Oakland, attended school in Virginia, studied in Paris, learned to speak Mandarin in China, and briefly worked in Ethiopia. Throughout his travels, he taught himself to pick up on phrases and cues that would help him break through cultural barriers. Oddly enough, those skills proved most valuable after he returned to the Bay Area — and became one of a very small number of African American entrepreneurs to try and break into Silicon Valley's tech sector.

Silicon Valley insiders might insist that they inhabit a "meritocracy" offering opportunity to anyone with a viable idea for a tech company. But it's not as if just anyone can walk through that door — funders are only interested in meeting with people their peers can vouch for.

And by the time an entrepreneur gets to the stage of courting venture capitalists, they've entered a world predominantly controlled by a single narrow demographic. "The majority are old white men," Imira says.

Conveying his idea to them was all the more difficult given the basis of his idea for a tech company: hair extensions.

"It's like, hair extensions? Black people? Black hair extensions? There's a disconnect of people relating," Imira says. "I had someone say: 'I don't know any black women.'" Another admitted he had never once set foot in Oakland.

Turns out, hair extensions aren't cheap — yet women who style their hair with them might shell out for the products three or four times a year, and African Americans are estimated to spend a total of $10 billion annually on hair products, three times as much as other demographics.

hair1

Imira told the Bay Guardian that his company, called Mayvenn, seeks to tap into that market while solving a problem that he says has long been contentious in the African American community.

Ever notice those corner beauty supply stores that sell hair extensions? "They're in every black neighborhood pretty much in the country," Imira says. "There are over 10,000 beauty supply stores. Less than eight percent of them are owned by any African Americans."

At the same time, "less than five percent of any black hair salons have any retail component of their business," Imira adds.

The idea behind his tech company is to give stylists the option of selling hair extensions to their customers directly, allowing them to earn a commission and boost their earnings. Nationwide, the average salary of a hair stylist hovers around $24,000 a year. Hairdressers are predominantly women, who earn less than men on average across all demographics.

"Each hair stylist gets an e-commerce website," explains Imira, noting that he has hair stylists in his family. "Usually the stylist would say, go to the beauty supply store, buy this, and bring it to me. Instead of sending her customer somewhere else to buy the product, she sends the customer to her website." The commission runs on a scale of somewhere around 15 to 30 percent (the typical price is $50 to $100, he says).

Mayvenn buys the extensions directly from China, and ships them to stylists when they place orders. The hair itself is predominantly from India, he says. "People cut off their hair for religious ceremonies at Hindu temples," he explains. "They make a pilgrimage and then shave off their hair." Factories also purchase "fallen hair," the leftover cuttings from beauty salons.

To get funding, Imira attended tech events, participated in pitch contests, and tried to learn all the right things to say. "To me, Silicon Valley is a culture," he says. "Trying to raise money there and get traction with investors is a cultural thing. There are unsaid cultural rules of what's going on."

Comments

So, a dubious idea that has nothing to with SV's current social media focus is rejected, and the conclusion you jump to is racism? Please, go on.

Posted by Chromefields on Feb. 13, 2014 @ 8:42 am

statistic that shows a black representation or participation that is not exactly equal to the 12% of the population they are.

So whether the problem is that blacks commit 50% of all crimes or represent 1% of all wealthy people, the reason is always racism to them.

Posted by Guest on Feb. 13, 2014 @ 8:55 am

It's an e-commerce business that serves a demographic that over-indexes in usage of social media. It has everything to do with SV's focus. And what exactly is "dubious" about it?

Posted by Guest on Feb. 13, 2014 @ 12:31 pm

Amazon lost $900 Million Dollars in 1999, yet no one said it was dubious. VC white boys just kept pumping money into it. The point of the article is their is no equivalent commitment to black entrepreneurs in SV. That is racist, not dubious.

Posted by Mr Isaac on Feb. 15, 2014 @ 10:43 pm

Really?

I saw a white shoe shine guy the other day. It can happen.

Posted by Guest on Feb. 16, 2014 @ 9:32 am

Not sure how a hair extensions business qualifies as a "tech" business...

Posted by Guest on Feb. 13, 2014 @ 8:59 am

stunning thing is the number of hair joints. There are almost as many hair places as there are licqor stores.

Posted by Guest on Feb. 13, 2014 @ 9:21 am

Oh, I'm not saying that it is a bad business to be in - it just isn't a "tech" business.

Do Sand Hill Road venture capitalists usually fund non-tech businesses?

Posted by Guest on Feb. 13, 2014 @ 10:09 am

Its an e-commerce business. Billions of dollars of venture capital are put into e-commerce companies every year.

Posted by Guest on Feb. 13, 2014 @ 12:28 pm
Posted by Guest on Feb. 13, 2014 @ 1:08 pm

Seriously?

Posted by Guest on Feb. 13, 2014 @ 9:22 am

That is not the founder, that is a hairstylist that is one of Mayvenn's customers. It says that in the picture's caption.

Posted by Guest on Feb. 13, 2014 @ 12:29 pm

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