State Senator Hannah-Beth Jackson
SAN FRANCISCO California State Sen. Hannah Beth-Jackson, D-Santa Barbara, introduced a bill Tuesday to explicitly protect female entrepreneurs who face sexual harassment and discrimination from male investors and venture capitalists.
Senate Bill 224 is a proposed amendment to the California Unruh Civil Rights Act which will add specific language about protecting entrepreneurs in their often necessary relationships with investors. The nonprofit Equal Rights Advocates is partnering with Beth-Jackson to pass the bill.
My bill will amend the Unruh Civil Rights Act, which is critical here in California, and it will make it crystal clear that there is legal protection for women under the law who experience this kind of predatory behavior, Beth-Jackson said on a call with reporters today. Specifically, the law will have their backs when it comes to this particular type of relationship between investor and entrepreneur.
This summer, Silicon Valley entrepreneurs revealed allegations of sexual harassment committed by male venture capitalists who acted as gatekeepers to funding and future business growth. In June, The Information reported that several female entrepreneurs experienced unwanted sexual advances from Justin Caldbeck, a venture capitalist who has worked with a few Silicon Valley VC firms. The New York Times later reported on several women, who told the publication about the types of harassment they have experienced, including propositions for sex, face-touching, Facebook messages about whether to hire you or hit on you and suggestions that they should include more attractive photos of themselves in their pitches.
Caldbeck has since left his firm, Binary Capital, which collapsed as investors removed their funds. Some venture capital firms responded by having their members sign decency pledges.
Beth-Jackson said she'd like to start a conversation with the wider community, including those venture capital firms that admitted their industry has a problem. To allow for that input and potential conversation, the bill will not be forwarded to the state Senate until January 2018, Beth-Jackson said. She said she wants the time between now and then to be thoughtful and deliberate.
The Unruh Civil Rights Act in California is a broad piece of legislation outlawing discrimination in California based on sex, race, color, religion, ancestry, national origin, age, disability, medical condition, genetic information, marital status, sexual orientation, citizenship, primary language, or immigration status. Beth-Jackson said her amendment would make it clear that women could sue under violation of the Unruh Civil Rights Act with a two-year statute of limitations. She said these types of protections are currently offered in the bill's broader language, but her bill will make the protections explicit. She said she hopes the bill will help rebalance what are currently skewed relationships between investors and entrepreneurs.