Background

Google's Startup Founders Fund was launched in 2020 to provide monetary grants, mentorship, and product support to startups with underrepresented founders. The program has given more than $50 million in support to over 600 founders. However, the grant landscape has changed significantly since 2020, with some tech founders and investors wondering what would happen to grant programs targeted at minorities amid fierce political and legal attacks on diversity, equity, and inclusion (DEI) initiatives.

The Google for Startups Founders Fund web page has undergone significant changes, with all fund programs for underrepresented founders now described in the past tense. The site currently states that there are zero fund programs available. Additionally, the language on the site has been altered, with the word 'underrepresented' removed from descriptions of the program's purpose.

Changes to the Program

The programs listed as 'past' funds on the site include the Women's Founders Fund, Latino Founders Fund, Ukraine Support Fund, Black Founders Fund U.S., and Black Founders Fund Brazil. While it is unclear which programs have formally ended, been suspended, or are being restructured, Google's response implies a shift in focus away from underrepresented founders and toward AI startups.

Google has announced that it will invest in AI-focused startups in the U.S. in 2025 and will share more specifics at a later date. The company has also removed diversity targets and mention of DEI from its annual 10-K filing. Other tech giants, such as Meta and Amazon, have also started adjusting their DEI wording and activities amid pressure from the Trump administration to roll back such programs.

Implications

The changes to Google's grant program have sparked concerns about the company's commitment to diversity and inclusion. The removal of language related to underrepresented groups and the shift in focus toward AI startups may be seen as a step backward for diversity and inclusion initiatives in the tech industry. As the landscape for grant programs targeted at minorities continues to evolve, it remains to be seen how Google and other tech companies will balance their commitments to diversity and inclusion with the changing political and legal climate.

NEWS FACTORY

Technology

Policy & Regulation

Artificial Intelligence