( CNN ) -- When Frederick Hutson left prison in 2012 after serving four years on marijuana-related charges , he realized he had gained something more than his freedom : insight into an overlooked consumer market . Many inmates are stuck in an age before Instagram or Facebook , relying on envelopes and pay phones to connect with family on the outside . So Hutson founded Pigeonly , a photo-sharing and low-cost phone call service that has already helped 50,000 incarcerated individuals connect with their loved ones , maintain their ties to society , and remain a presence in their children 's lives . The story of Pigeonly is statistically unlikely : a disruptive technology created by a member of a disenfranchised community , in order to solve a problem within that community . It is also a model for the type of entrepreneurship that can revive American capitalism : both inclusive of and responsive to America 's changing demographics . One of the great achievements of the civil rights and women 's rights movements was that they unleashed an enormous pool of talent into the economic life of America . Desegregation and the women 's movement broke down barriers to education and employment and made our nation stronger by making it more competitive . Yet 50 years later , a narrow vision of capitalism once again threatens to leave many Americans behind . Our nation 's failure to achieve equal educational opportunity has exacerbated race-based economic disparities and produced two starkly different American economies . And while women have made strong gains in professional life , they remain dramatically underrepresented in many of the most profitable sectors . Silicon Valley is hardly the only place where this is evident , but addressing it here is crucial to turning the tide . Last year there were eight states where zero Latino students took the Advanced Placement exam in computer science , and 11 states in which no black students took the test . In three states , not a single female student sat for the exam . It is no surprise , then , that 99 % of venture capital-funded startups in 2010 were founded by whites or people of Asian descent , the vast majority of whom were men . The result of this pipeline problem is an enormous amount of untapped talent and a tech sector that fails to reflect the demographics of its users . To be sure , government can play a crucial role in leveling the playing field . But it can only go so far . The leaders of the innovation economy can and should play their part in reviving capitalism by making it more responsive to a changing country 's full range of widespread needs and more inclusive in the process . This is a practical demand as much as a moral one . Underrepresented populations are uniquely prepared to do what the tech sector claims to do best : innovate . Look at the app store on any smartphone . There are thousands of programs to edit a photo or help you check the weather , but far fewer that exist to close the gaps in our society . In Silicon Valley , we like to say that every problem is a potential opportunity . But it takes a diversity of backgrounds to identify the real-world problems begging for a solution . Simply put , startups like Pigeonly are shattering expectations of what the market demands . Smart investors are looking at firms like Regalii , which helps immigrants send cash remittances back to their home countries , or Plaza Familia , a Latina-founded multilingual education software platform that helps parents track their children 's ' school progress in their native language . Our firm , Kapor Capital , invests in these companies and dozens of others that work to close gaps . We saw that startups like Pigeonly were launched by entrepreneurs who identified an unmet need in the market as a result of their life experiences . Silicon Valley tells an idealistic story of itself and the revolutionary role of tech leaders in the 21st century economy . Tech innovation can and should expand wealth , democratize access to opportunity , and build a meritocracy where talent matters most . However , we still have a long way to go . We will be there when companies like Pigeonly , Regalii , and Plaza Familia and their founders -- African-Americans , Latinos , women of all colors , and others historically excluded -- are no longer the exception to the rule . Capitalism remains our nation 's operating system . The current version needs an upgrade . Investing in the people who are too often locked out , and their ideas , can advance our economy and our country to the next level . Join us on Facebook.com/CNNOpinion .
Mitch Kapor and Ben Jealous worry that a lack of diversity in tech firms is stalling innovation . Startups succeed , they say , when they meet unmet needs . The two men are among the most prominent voices calling for more diverse representation on corporate boards — an issue that's been gaining traction as companies like Google and Facebook have become increasingly diverse. Capitalism , they say , is U.S. operating system but current version needs an upgrade .