Research on entrepreneurial team diversity has been emerging, but findings have been inconclusive. We argue that the way entrepreneurship scholars approach diversity can benefit from examining three important diversity types: separation, variety, and disparity. We examine the meaning, shape, and assumptions underlying each type and the implications of diversity for key aspects of the entrepreneurial process as occurring at different stages of the development of an entrepreneurial team. We conclude by discussing future research directions, in order to enhance theory development and address inconsistencies in previous research.