The Great Return is here. The phrase refers to Huge Tech, which has begun to restrict some of the diversity, equity and inclusion (DEI) programs it implemented shortly after the murder of George Floyd. Recently, Zoom announced that yes fired his DEI team. Google and Meta have it started defunding their DEI programs and funding for Black founders continues to decline. Lawsuits have been filed against DEI programs, forcing companies to hide their inclusion efforts by being 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 to ban affirmative action measures and the presidential election is just around the corner. Here are all the stories you need to read to stay up to date with what’s happening in the ongoing response to tech DEI.
This list will be updated, so keep checking back.
Read about AAER’s lawsuit against Fearless Fund
In August 2023, the American Association for Equal Rights (AAER), founded by Edward Blum, the man who helped overturn affirmative action in education, filed a lawsuit against the venture fund Fearless Fund for offering business grants to Black women. AAER alleged that the grant discriminated against white founders and Asian founders. The Fund and AAER are in court and the Fearless Fund is currently unable to award scholarships to any more Black women.
ON Instagram, Arian Simone, the fund’s chief executive, said the lawsuit financially harmed the fund as it lost millions of dollars in potential liabilities and faced staff reductions, low cash resources, costly legal bills and threatening letters. However, the impact of a lawsuit could go much deeper than just one fund and could have ripple effects across the entire ecosystem.
But Fearless Fund isn’t the only one sued. The Diminutive Business Administration, the Minority Business Development Agency, and even smaller companies like Hello Alice are being targeted and sued for trying to implement various grant programs.
Read what critics are saying about DEI
Anti-DEI rhetoric has increased dramatically. Many celebrities in the venture industry, such as Elon Musk, Peter Thiel and Y Combinator founder Paul Graham, have shared the sentiment towards DEI, with only a few, such as Mark Cuban, expressing support for it. This division is sure to continue and deepen as billionaires continue to wield the power – and influence – to express their opinions.
At the same time, there are many people who are actually trying to change and become more inclusive. However, change takes time and some promises made have not been fulfilled.
Read how governments are tackling DEI
Last year, California passed a law that will soon require venture capital firms in the state to disclose a breakdown of the diversity of founders they support. Some are heralding the bill as progress in a notoriously unclear industry.
But California isn’t the only state looking to address diversity. Massachusetts intends to pass a bill that would extend workplace regulations to high-risk industries; Modern York venture capital firms have informally joined forces to form an alliance aimed at supporting greater diversity. There is enthusiasm for these initiatives, but there is also some hesitancy.
Rep. Emanuel Cleaver, who co-chairs the Congressional Black Caucus, is trying to pass a bill in Congress that would make investing in endowments more lucid. He fell into the trap and said that several educational institutions in the country were downright “nasty” towards him and his efforts.
DEI has become a major issue in red states as many have moved to ban affirmative action measures. Many tech hubs are actually just blue cities, meaning more liberal cities in red or more conservative states. These include Tulsa, Atlanta, Miami and Austin, and all are leading the way in helping make technology more accessible to people outside the Bay Area. But will their ruling states stick a dagger into all this progress?
For example, Governor Ron DeSantis is a leader in passing anti-DEI measures. From book bans to speech restrictions, he is also one of the few governors taking aim at ESG investing, proposing a move that could impact various fund managers in the state of Florida.
On a national level, the Congress of Black Caucuses (CBC) set out to learn more about what’s happening in tech. He recently wrote letters to OpenAI and the Department of Labor to learn how the tech industry intends to support Black talent during this period.
OpenAI actually responded to CBC and we got the scoop on what happened next.
Read the latest DEI funding data
Funding for Black founders has steadily declined since 2020, and last year was no different.
Read DEI opinion from abroad
Industries abroad are paying attention to the United States, including when it comes to the treatment of marginalized founders. Stay up to date on how global venture capital ecosystems are tackling DEI and what it says about progress in the US
France is an extremely challenging ecosystem for Black Founders. Find out how the country is faring in one of the most unclear venture landscapes for people of color.
Meanwhile, the UK has made great strides in funding black founders.
