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Anti-Harassment Bill to Seek Tech Industry Input

Stunned by reports of Silicon Valley venture capitalists making unwanted sexual advances on female entrepreneurs, one state senator wants to make the law clear: Investors must not act inappropriately with those who seek their help.

Stunned by reports of Silicon Valley venture capitalists making unwanted sexual advances on female entrepreneurs, one state senator wants to make the law clear: investors must not act inappropriately with those who seek their help.

Sen. Hannah-Beth Jackson, D-Santa Barbara, on Thursday announced legislation that would expand the state’s civil rights act and explicitly prohibit sexual harassment between investors and entrepreneurs.

Jackson intends to officially introduce her bill when lawmakers return Monday from their summer recess, however, she said she won’t attempt to push for its passage in the last four weeks of session. Instead, she plans to work with the tech industry and others to ensure a successful bill when the Legislature reconvenes in January.

“We want to send a strong signal to the tech industry that this behavior will not be tolerated,” Jackson told reporters on a media call.

The bill comes after a spate of recent media reports this summer, where dozens of female tech entrepreneurs detailed unwanted sexual advances from influential and wealthy men who had the power to fund their ideas. 

The stories of sexual harassment, critics say, reflect a culture of misbehavior in the male-dominated tech industry. It’s a problem that Jackson described as “pervasive” and one that “demands a systemic and strong response.”

One survey of men and women in the tech industry found that 53 percent of women reported being sexually harassed, according to results released Wednesday by the nonprofit Women Who Tech. And 65 percent of women founders were propositioned sex in exchange for funding, the survey found.

“This behavior has become normalized within the tech and startup world,” said Allyson Kapin, founder of Women Who Tech. “This is a huge issue that needs to be addressed.”

California’s Unruh Civil Rights Act already prohibits sexual harassment in the workplace, with specific references to certain professions such as attorneys, teachers, landlords and physicians. Jackson, who is chair of the Senate Judiciary Committee, said she believes the law should be updated to specifically name investors.

Such a change in the law would send a clear signal to an industry that already understands it needs to change, said Noreen Farrell, executive director of Equal Rights Advocates, who joined Jackson on the call.

“We’re saying to women everywhere that the law has their back,” Farrell said. “They can get down to the business of launching their businesses.”

Already, allegations by female entrepreneurs have led to the departure of high-profile venture capitalists, including Dave McClure of 500 Startups and Justin Caldbeck, the co-founder of Binary Capital.