The great setback is already here. The phrase refers to Big Tech beginning to cut back on some of the diversity, equity and inclusion (DEI) programs that were implemented shortly after the murder of George Floyd. More recently, Zoom announced that fired his DEI team. Google and Meta have began to defund its DEI programs and funding for Black founders continues to dive. Lawsuits have been archived target DEI programs, forcing companies to hide their inclusion efforts while billionaires They are arguing about X on whether DEI initiatives are discriminatory or not.
It’s clear that this year will be a turning point for DEI, especially as states continue banning affirmative action measures and with a presidential election around the corner. Here are all the stories you need to read to stay up to date on developments related to technology’s current DEI backlash.
This list will be updated, so keep checking back.
Read about the lawsuit between AAER and Fearless Fund
In August 2023, the American Alliance for Equal Rights (AAER), founded by Edward Blum, the man who helped repeal affirmative action in education, filed a lawsuit against the venture fund Fearless Fund for offering deals. grants to black women. The AAER alleged that the grant discriminates against white and Asian American founders. The Fund and AAER are fighting the case in courtand currently, Fearless Fund is prohibited to provide grants to more black women.
In instagramArian Simone, executive director of the Fund, said the demand has financially harmed the fund as it lost millions in potential commitments and faced staff cuts, low liquidity, costly legal bills and threatening letters. However, the impact of the lawsuit could be much deeper than simply affecting one fund and could have knock-on effects throughout the ecosystem.
But Fearless Fund is not the only defendant. The Small Business Administration, the Minority Business Development Agency, and even smaller businesses like Hello Alice are being targeted and sued for trying to implement various subsidy schemes.
Read what critics say about DEI
Anti-DEI rhetoric has increased dramatically. Many big names in business, such as Elon Musk, Peter Thiel, and Y Combinator founder Paul Graham, have shared anti-DEI sentiments, while only a few, such as Mark Cuban, have expressed support. This divide is sure to last and deepen as billionaires continue to wield their power (and influence) to make your opinions heard.
At the same time, there are many who are really trying to change and become more inclusive. However, change takes time and some of the promises made have not been fulfilled.
Read how governments are handling DEI
California passed a bill last year that will soon require the state’s venture capital firms reveal diversity breakdown of the founders who support it. Some herald the bill as a breakthrough in a notoriously opaque industry.
However, California is is not the only state seeking to address diversity. Massachusetts seeks to pass a bill that would extend labor laws to the hazardous industry; New York City Venture Firms met informally create an alliance to support greater diversity. There is enthusiasm around these initiatives, but also some doubts.
Representative Emanuel Cleaver, co-chair of the Congressional Black Caucus, has been trying to pass a bill in Congress that would make Equity investment is more transparent.. He ran into a problem and said that some educational institutions in the nation have been openly “nasty” to him and his efforts.
DEI has become a focus of attention in red states, as many have decided to ban affirmative action measures. Many tech hubs are actually simply blue cities, that is, more liberal-leaning cities within red or more conservative-leaning states. These include Tulsa, Atlanta, Miami and Austin, and they are all in the cutting edge to help make technology more accessible to people outside the Bay Area. But will their ruling states put a dagger in all that progress?
Governor Ron DeSantis, for example, is a leader in approve anti-DEI measures. From book bans to speech restrictions, he is also one of the few governors targeting ESG investing, proposing a measure that could affect various fund managers in the state of Florida.
In a Nacional level, the Congressional Black Caucus (CBC) has dedicated itself to finding out more about what’s happening in technology. Recently, he wrote letters to OpenAI and the Department of Labor to see how the tech industry seeks to support Black talent during this time.
OpenAI really did it reply to CBC, and we found out what happened next.
Read the latest DEI funding data
Funding for Black founders has continued to decline since 2020, and last year was no different.
Read the DEI view from abroad
Overseas industries look at the states, even when it comes to how marginalized founders are treated. Stay up to date on how global venture ecosystems are handling DEI and what it says about progress in the US.
France is notoriously Complicated ecosystem for black founders. Learn how the country navigates one of the most opaque risk landscapes for people of color.
Meanwhile, the United Kingdom has made many progress about funding for black founders.