The Great Return is here. The phrase refers to Big 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 began defunding their DEI programs and funding for Black founders continues to decline. Lawsuits have been filed against DEI programs, forcing firms 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 12 months can be a turning point for DEI, especially as states proceed to ban affirmative motion measures and the presidential election is just around the corner. Here are all the stories you would like to read to stay up to date with what’s happening in the ongoing response to tech DEI.
This list can 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 motion in education, filed a lawsuit against the enterprise 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 because it lost tens of millions of dollars in potential liabilities and faced staff reductions, low money resources, costly legal bills and threatening letters. However, the impact of a lawsuit could go much deeper than simply one fund and could have ripple effects across the entire ecosystem.
But Fearless Fund is not the only one sued. The Small Business Administration, the Minority Business Development Agency, and even smaller firms 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 enterprise industry, akin to Elon Musk, Peter Thiel and Y Combinator founder Paul Graham, have shared the sentiment towards DEI, with only a few, akin to Mark Cuban, expressing support for it. This division is sure to proceed and deepen as billionaires proceed to wield the power – and influence – to express their opinions.
At the same time, there are many individuals who are actually trying to change and turn out to be more inclusive. However, change takes time and some guarantees made have not been fulfilled.
Read how governments are tackling DEI
Last 12 months, California passed a law that can soon require enterprise 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 opaque industry.
But California is not the only state looking to address diversity. Massachusetts intends to pass a bill that may extend workplace regulations to high-risk industries; New York enterprise 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 may make investing in endowments more transparent. He fell into the trap and said that several educational institutions in the country were downright “nasty” towards him and his efforts.
DEI has turn out to be a major issue in red states as many have moved to ban affirmative motion 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, Gov. 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 might 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 find out how the tech industry intends to support Black talent during this era.
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 12 months was no different.
Read DEI opinion from abroad
Industries abroad are being attentive to the United States, including when it comes to the treatment of marginalized founders. Stay up to date on how global enterprise capital ecosystems are tackling DEI and what it says about progress in the US
France is an extremely difficult ecosystem for Black Founders. Find out how the country is faring in one of the most opaque enterprise landscapes for people of color.
Meanwhile, the UK has made great strides in funding black founders.