Ellen Pao vs. Sexism in Silicon Valley
On Monday, interim CEO of Reddit Ellen Pao began testimony in a gender discrimination and retaliation lawsuit she filed against her former employer Kleiner Perkins Caufield and Byers, LLC. Pao claims the Silicon Valley based venture capital firm denied her promotion due to gender bias. According to the defendant, Pao – a BA in Electrical Engineering from Princeton and a JD and MBA from Harvard – did not exhibit the skills warranted for partner. It’s hard to parse what those skills are exactly – the trial has exposed the contradictory messages that determine success at the firm.
John Doerr, her boss and mentor at KPCB, stated in 2008 that Ivy League drop-out tech nerds with no social skills are great investment opportunities. Yet one of the defenses KPCB has been wielding against Pao is that she didn’t have the personality to lead and was “prickly” with others. A company sponsored ski trip did not invite female entrepreneurs from portfolio companies (because “women don’t like sharing [condos]”) and an affair with a junior partner created a complicated, voraciously followed court case – which is one of the first and only glimpses into the bizarre cultural dynamics at play in the secretive world of tech investment.
Sexism in technology is part of the territory – this isn’t the first lawsuit describing gender discrimination at a technology-related firm and there is still a ghastly lack of women entering or supported in the STEM fields. An already abysmal picture gets worse in the tony world of venture capital – Dan Primack wrote at Fortune that this case isn’t reflective of KPCB’s peers, “because that would at least reflect the existence of more female venture capitalists.” Turns out, only 4% of senior venture capitalists are women.
In the world of technology, venture capital can make or break your business and has implications for the long-term growth and scalability of your company. Many of the biggest and most valuable companies have received rounds of VC funding (Google, Apple and Microsoft). Obviously, not every company will be an Apple, but VC funding generally focuses on technology products that show high growth potential. The impact of VC funding is not just money (generally to the tune of 1-2 million dollars), but expertise and social capital from the investors. Investment with this kind of impact would do well with increased diversity in decision-making.
The case is being defined by line-by-line readings of text messages from Pao’s affair with a married peer, but the financial dirt is much more fascinating. Consider this: Pao claimed in testimony she had shown interest in investing in Twitter, but was shut down by a male senior partner. So, how is it that despite the progress in women’s lives, the same gender narrative that dominated previous models of business (read:the old boys club) is still so present in an industry that regards itself as innovative? What does it mean that this new economy, ripe with high-growth potential for women entrepreneurs, is exposing itself as an outwardly hostile environment for women?
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