The Great Rollback has begun as Big Tech starts cutting back on diversity, equity, and inclusion (DEI) programs established after the murder of George Floyd. Zoom recently laid off its DEI team, while Google and Meta have begun defunding their DEI programs, resulting in a decrease in funding for Black founders. Lawsuits targeting DEI programs are causing companies to conceal their inclusion efforts, while debates among billionaires like Elon Musk and Mark Cuban continue about the discrimination aspect of DEI initiatives.
This year is poised to be a pivotal moment for DEI, especially with the ban on affirmative action measures by states and a forthcoming presidential election. Stay informed about the ongoing DEI backlash in the tech industry with these essential readings.
Check back frequently as this list will be updated.
Read about the AAER vs. Fearless Fund lawsuit
In August 2023, the American Alliance for Equal Rights (AAER) filed a lawsuit against Fearless Fund for providing business grants exclusively to Black women, alleging discrimination against white and Asian American founders. The legal battle has put Fearless Fund at a financial disadvantage, impacting its operations and signaling potential repercussions across the ecosystem.
Apart from Fearless Fund, other entities like the Small Business Administration and Hello Alice are facing similar lawsuits for their attempts to implement diverse grant programs.
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Read what critics are saying about DEI
Anti-DEI sentiments have gained prominence, with notable figures in venture like Elon Musk and Peter Thiel expressing skepticism towards DEI initiatives. While some voices, including Mark Cuban, advocate for diversity and inclusion, the divide is expected to deepen as influential billionaires assert their opinions.
Despite efforts towards inclusivity, progress may be slow, and some promises made in support of DEI have fallen short.
Read how governments are handling DEI
California recently passed a bill that mandates disclosure of diversity data by venture capital firms, seen as a positive step in a typically opaque industry.
Other states like Massachusetts and New York City are also taking steps to address diversity issues in the venture industry. However, red states are enacting measures to ban affirmative action, posing challenges to DEI initiatives.
Governor Ron DeSantis of Florida is leading anti-DEI efforts, which could impact diverse fund managers in the state. Meanwhile, the Congressional Black Caucus is pressing tech companies and government agencies to support Black talent and enhance diversity efforts.
Read the latest DEI funding data
Funding for Black founders has seen a continuous decline since 2020, with last year showing no improvement.
Read the DEI view from abroad
Learn about how global venture ecosystems, particularly in France and the UK, are approaching diversity and inclusion, offering insights into progress within the U.S.
Explore the challenges faced by Black Founders in France’s venture landscape, contrasted with the progress made in funding for Black founders in the UK.
