Have you ever felt like success was locked in a room, and everyone but you had the key? For underestimated entrepreneurs—those navigating systemic barriers of privilege and access—this feeling is all too familiar.
Unlike social capital, network capital isn’t just about who you know–it’s about creating value and opportunities through meaningful relationships that challenge exclusion and redefine access.
While traditional paths to success are often blocked by network privilege and exclusivity, there’s an alternative: building your own network capital. Unlike social capital, network capital isn’t just about who you know–it’s about creating value and opportunities through meaningful relationships that challenge exclusion and redefine access.
Defining network capital and why it matters
Think of network capital as a vital resource that can make or break your ability to build, launch, validate, and scale your business. With the right introduction, you can source a co-founder, a crucial partner or a much-needed investor. Network capital isn’t limited to in-person connections either. It thrives in LinkedIn groups, virtual meetups, and global entrepreneurial communities, making it more accessible than ever.
Many entrepreneurs–especially those from marginalized or disenfranchised backgrounds–may face challenges when they try to access network privileges and financing.
From navigating inaccessible systems to fostering powerful in-tribe collaborations, I’ll share how to unlock opportunities and rewrite the rules of entrepreneurial success.
Network capital is the value and potential that comes from your connections, relationships, and communities. It’s not just who you know, but how those relationships help you access opportunities, share knowledge and build valuable pathways to your entrepreneurial success.
In 2023, Crunchbase found that Black founders in the U.S. raised 0.48% of all venture dollars allocated last year–which equates to around $661 million out of $136 billion. This disparity, which has never really shown a sustainable, positive trend north into healthier numbers, has a lot to do with network privilege, bias and homophily.
As a minoritized person, you may have struggled to build the necessary relationships and break through barriers needed to scale your ambitions. Maybe you watched peers with more privilege and access get further faster.
The topic of network capital starts long before we are aware of its existence, and it follows us into the entrepreneurial realm. We have less access to investor networks and so-called warm introductions, and we tend to be tokenized by programs which drive little impact.
For those who are underestimated and lack representation, network capital presents an almost impenetrable barrier–until those who have built it share how it’s done–or we build our own networks from scratch.
Primary vs. secondary networks
Think of your networks in two categories:
- Secondary networks: connections made through proximity rather than shared purpose. These can provide surface-level value but are often less impactful in the long term.
- Primary networks: connections built intentionally around shared values, purpose, or goals. These are where the most lasting and meaningful value is created.
Primary networks take more time to foster, so stay intentional. Start by exploring your existing contacts and seeking out platforms—local and global—that focus on your community and values. The goal is to move from networks of convenience to those built on shared purpose.
After pushing through secondary networks with little reward, you may deem it time for a re-design, one where you can dictate the terms of network capital.
There is no clear-cut formula or instruction manual for building this capital. But it’s a critical tool for getting things done. Starting with an awareness of barriers to our inclusion, and building meaningful connections on our own terms, are some concrete steps you can take on this journey.
Obstacles to building network capital for marginalized entrepreneurs
Being the only—or one of the few—in the room often means navigating unfamiliar territory. Others, through pedigree and privilege, have mastered the playbook of incredibly particular cultural contexts, and can effortlessly craft the right persona. One effective approach is to become a cultural translator—learn the language, norms, and expectations of the space while bridging them with your unique perspective. This allows you to engage meaningfully without losing your authenticity.
But even if you make it through the door and deliver the perfect pitch, it might slam shut on your way out. McKinsey & Company shows that there is, “a gap on both sides of the table … in general, funds that flow from asset managers match their demographics.” As of 2021, just 1.4% out of the $82 trillion in US assets under management (AUM) are managed by women or Black, Indigenous, People of Color (BIPOC) managers. This reminds us to target the small share that will actually move the needle.
Even as disparity data becomes increasingly visible and undeniable, barriers to entry persist. Adaptation alone isn’t always enough—systemic biases still dictate outcomes, regardless of preparation or skill. Even after mastering the cultural codes and delivering a flawless pitch, access is often determined by who decision-makers see as ‘fitting in.’ This is why targeting aligned investors, allies, and gatekeepers who actively seek diverse perspectives is just as crucial as refining your approach.
Navigating networks
So, how do we understand our place in these networks? And more importantly, how do we create ones tailored to our needs and experiences?
The solution lies in challenging the limiting beliefs that hold us back from building powerful networks. While these beliefs are deeply rooted in real, lived experiences of navigating and accessing privileged spaces, they don’t have to define our future.
By building our own network capital, we achieve more than personal success—we reshape and challenge the narratives surrounding underrepresented communities. This collective value creation becomes a powerful tool to dismantle messages that feed our insecurities and undermine our confidence.
Breaking barriers as the “only” or the “first”
For those who are underestimated and lack representation, building network capital may feel daunting. However, learning from those who’ve succeeded before can reveal strategies to break through these barriers.
Seek out people from your affinity group who have succeeded and ask them questions about their journey. This will help you dispel uncertainty and cut through ambiguity. You may find that an unconventional approach—one that fits your unique context—is often the most effective.
Unlikely allies arise
Systems are always prone to shifts, and your greatest supporter may come in the most unlikely form. Look for those who openly challenge the system or have shared their frustrations with you—they may become helpful accomplices.
On that note, be mindful of the distinction between allies and accomplices. Allies often support you when it’s convenient or beneficial to them. Accomplices will actively work to reform the system and champion meaningful change. They go beyond superficial support to drive substantive transformation.
Through these partnerships, accomplices can act as sponsors or champions, helping you overcome barriers and gain access to spaces devoid of representation.
Building our own networks
Your tribe differs from your primary network—it consists of people who share your identity and whose experiences intersect with your specific industry or expertise. Advantageous associations come from creating your primary network over time.
In your role as a male advocate, you may run in the women’s economic empowerment circle. But your tribe may be rooted in your demographic background and industry, say Black tech founders. Your tribe understands your lived experiences and where you aim to thrive. Based on your identity and industry, look to platforms like Black HealthTech Founders, Female Founders or local incubators to begin building these connections.
Compound network value creation comes from targeting your primary network or tribe and investing in these spaces over time.
You can attract and retain your tribe using proven approaches. A transactional networking style allows for quick interactions and the ability to gather insights that inform short-term decisions. In contrast, a relational networking style focuses on building deeper connections and investing time, which leads to more strategic, long-term value.
Build in-network and in-tribe
There is a frame of mind that argues a network is built upwards through hierarchy and status. This assumes that everyone has easy access. In fact, many networks bank on maintaining designed exclusion.
This principle is reflected in my own experience. At my top-ranked European business school, I reached out to 50 highly targeted contacts and received just one response–from the only Black person on the list. In contrast, when I engaged with an online community for Black entrepreneurs in the U.S., my response rate skyrocketed to nearly 60%. This demonstrated to me the power of in-network and in-tribe connections, where shared identity and purpose foster more meaningful engagement.
Developing your personal brand is essential to harnessing the momentum of your network. After establishing one targeted for my niche, the Canadian government messaged me on LinkedIn asking to connect me with a, “key stakeholder in the Black entrepreneur and innovation ecosystem in Alberta for when we bring our delegation to London Tech Week”. Yes—you heard me right. This was a key lesson for me on audience discovery. My reputation in the Black technology space across various international communities preceded me. To my surprise, my network autonomously facilitated business opportunities on my behalf.
Building affinity and horizontal networks is a key strategy for growth. Spend less time perfecting your interactions with those beyond your reach and focus on partnering with those next to you. You can build something valuable with this cohort and start delivering results to leverage upwards. An added benefit, after working hard to curate this network, you can go on autopilot as it organically accrues value for you.
By tapping into in-network and in-tribe connections, I shifted from navigating the tech industry by myself to advising early-stage projects and collaborating with government entities. My networks now champion my efforts and partner with me to drive industry and economic change.
Building network capital is dynamic and unpredictable, but this serendipity often works in our favor. To expand, discover new opportunities while prioritizing value:
- Attend relevant events: step out of your comfort zone by attending networking events and conferences, even in unfamiliar cities.
- Make an ask: find someone in your horizontal network who you trust and ask them to introduce you to their network. One connection can lead to several more.
- Join communities: get active in community spaces. To avoid feeling overwhelmed, focus on high-value connections over breadth.
As a young, underestimated talent and entrepreneur the greatest battle is that of accessibility and equal opportunity. It’s critical for the next generation of young entrepreneurs to know who their allies, collaborators, sponsors, and appropriate investors are. I’m proud to have broken through these inaccessible systems, defied expectations and cultivated a path for others to pursue in entrepreneurship, social innovation and community development.