Garcetti helps push diversity in L.A. tech sector

On Monday morning, a cross section of Los Angeles’ close-knit tech investment community gathered on the plaza of the Annenberg Center for Photography to mingle with Mayor Eric Garcetti, drink mimosas — and commit to changing their ways.

The event marked the beginning of PledgeLA, an initiative by the Annenberg Foundation and City Hall that asks venture capitalists and the companies that they fund to make a three-point pledge: diversify their companies at all levels, increase community engagement, and measure and report their progress.

“The tech industry looks a little different because people are wearing T-shirts and flip-flops,” Garcetti said from the stage. “But the boardrooms and C-suites look like something out of ‘Mad Men.’ ”

The initiative grew out of Annenberg Tech, a project focused on spreading the benefits of the growing local tech sector by encouraging social-impact investing and workforce development.

“Tech cannot keep growing at this explosive rate without engaging with the community,” said Annenberg Foundation Chief Executive Wallis Annenberg. “What I want with this partnership is to say, ‘Let’s all grow together, so everybody benefits.’ ”

Forty-eight venture capital firms have signed on to the program, representing the bulk of L.A.’s tech investor class. They are joined by 39 tech companies in the city, including Dollar Shave Club and Tradesy, an online resale marketplace for women’s fashion.

Data provided by the Annenberg Foundation outlines the scope of the problem. On the investment side, only 11% of venture capital partners in L.A. identify as women, and only 2% identify as African American or Latino. On the start-up side, more than 90% of local venture-backed companies are led by white men.

The first step for venture capital firms that sign the pledge is taking a survey that measures diversity in their companies — on metrics including race, gender, socioeconomic status, and sexual orientation — and engagement in local philanthropy and education. The results will be made public in early 2019 and then used as a baseline for setting specific goals for improvement. A survey for companies that sign the pledge is set to follow soon after.