great rollback It is here. The phrase refers to how big tech companies began cutting back on some of their diversity, equity, and inclusion (DEI) programs in the immediate aftermath of George Floyd's murder. Just recently, Zoom announced that it had fired his DEI-focused team. Google and Meta have started cutting funding to their DEI programs, and funding for Black founders continues to decline. Lawsuits targeting DEI programs are being filed, and while billionaires debate X over whether their DEI efforts are discriminatory, companies are being forced to hide their inclusion efforts. ing.
It's clear this year will be a turning point for DEI, especially as states continue to ban affirmative action and the presidential election is just around the corner. Here's all the articles you need to read to stay up to date on his ongoing DEI backlash in the tech industry.
Please keep checking back as this list will be updated.
Read about the AAER v. Fearless Fund case
In August 2023, the Equal Rights Alliance of America, founded by Edward Blum, who worked to abolish affirmative action in the education sector, filed a lawsuit against the venture fund Fearless Fund for business subsidies to black women. filed a lawsuit. AAER argued that the grant discriminated against white and Asian American founders. The foundation and AAER are fighting the case in court, and the Fearless Fund is currently prohibited from making any more grants to black women.
Ariane Simone, the fund's CEO, said on Instagram that the lawsuit could cost the fund millions of dollars in potential commitments, including layoffs, funding shortfalls, high legal fees, and threatening letters. He said he faced a financial blow. But the impact of a lawsuit can go deeper than just affecting one fund and ripple through the entire ecosystem.
But Fearless Fund is not the only company being sued. Small Business Administration, Minority Enterprise Development Authority, and even small businesses like Hello Alice have been targeted and sued for trying to implement various subsidy programs.
Read what critics are saying about DEI
Anti-DEI rhetoric has increased dramatically. Many of the biggest names in the venture world, including Elon Musk, Peter Thiel, and Y Combinator founder Paul Graham, share sentiments about DEI, but only one voice has expressed support. There are a few, like Mark Cuban. This division is certain to continue, and will only deepen as billionaires continue to use their power and influence to get their views across.
At the same time, there are a lot of people who are actually trying to change and become more inclusive. But change takes time, and some promises remain unfulfilled.
Read how the government is handling DEI
Last year, California passed a bill that would soon require venture capital firms in the state to provide a breakdown of the diversity of the founders they support. Some are heralding the bill as a step forward in a notoriously opaque industry.
But California isn't the only state considering diversity initiatives. Massachusetts is seeking to pass legislation that would extend workplace laws to the venture industry. New York City startups have come together informally to create an alliance to support greater diversity. There is some excitement about these initiatives, but also some hesitation.
Representative Emanuel Cleaver, co-chair of the Congressional Black Caucus, is seeking to pass legislation to increase transparency in donor investments. He said he felt stuck and that some educational institutions in the country were blatantly “mean” to him and his efforts.
DEI has become a hotbed issue in red states, as many states seek to ban affirmative action measures. Many tech hubs are actually just blue cities, meaning more liberal-leaning cities located in red states, or more conservative-leaning states. These include Tulsa, Atlanta, Miami, and Austin, all of which are at the forefront of efforts to make technology more accessible to people outside the Bay Area. But will their governing state put a dagger to all that progress?
For example, Governor Ron DeSantis is a leader in passing DEI legislation. He is also one of the few governors to take aim at ESG investing, from book bans to speech restrictions, proposing measures that could impact Florida's diverse fund managers.
At the national level, the Congressional Black Caucus (CBC) is working to further investigate what is happening in the tech industry. The company recently sent a letter to OpenAI and the Department of Labor to confirm how the tech industry is looking to support Black talent during this time.
OpenAI actually responded to CBC and got the scoop on what happened next.
Read the latest DEI funding data
Funding for Black founders has continued to decline since 2020, and last year was no exception.
Read views on DEI from abroad
Overseas industry is keeping an eye on the United States, including how marginalized founders are treated.Stay up to date on how the global venture ecosystem is treating his DEI and progress in the US
France is a notoriously difficult ecosystem for black founders. Learn how this country is navigating one of the most uncertain venture environments for people of color.
Meanwhile, the UK has made significant progress in funding black founders.