Startups Anonymous Est. 2013 · Read-only archive
Questions

Is it possible to sue an investor for gender discrimination?

I had a terrible meeting with an investor where he was clearly sexist.  I documented it but moved on.  Recently, one of the partners from that firm said something else really dismissive and stupid about women in tech and now I feel like I can’t and shouldn’t let it go.

I won’t even bother arguing that they *should* have invested in my company… but I do feel like I should be able to have meetings where my gender is not an issue and I am judged solely on the merits of my company and what I bring to the table.

I have always been afraid of seeming like “sour grapes” but now I am thinking that it is time to act.

17 answers from the community

AAnonymous· Mar 12, 2015

Time to re-work your thinking. When it is said, put them in their place right away. The only thing more disgusting than letting someone get away with saying things is documenting. It's cowardly if nothing is said to that person to let them know they are out of line or not being encouraging. It's hard for me not to give advice on what to say when I don't know what was said.

You don't have to be emotional, but frank and earnest. For example if they say, "I don't know why women are in tech when their minds are all over the place". You say, "you're absolutely right. Tech requires no creativity, just the simplicity of a simplistic mind. Maybe that's why men excel. What do you think?" Smile and go about your way.

I've only once had something said to me because of my gender that caught me off guard. So I don't have this problem. I get hit mostly because of my race, background, and good looks. I've learned that if you don't put them in their place, they will continually push the boundaries to see how far they can take it. It's psychological warfare, you have to earn their respect. Unfortunately, Investors often were once hard working men that are bitter because they spent all their time unmasking wealth to be happy, get a beautiful wife, nice home, fast car, etc. only to get heartbroken in the process or find that happiness was not that beautiful wife. Psychologically speaking, they wish their wife was more like you, but if she was, they feel they no longer bring value and that's why they call war upon you.

Put them in their place as politely as you can and keep moving forward. It's a dance you play until you shape them to stay on their side of the box.

AAnonymous· Mar 12, 2015

+1

If you disagree with someone, say it directly right away or leave it.

Being rejected btw from investors or facing sexism/discrimination isn't a question of gender, men also face sexism, harassment, discrimination (there are plenty of women-only investors/programs/internships..).

An investor doesn't have to invest in you, even he doesn't invest because you are a woman. It's his simple right. Same goes for those women investment/business angel programs.

Also if I am investor, and you want to pitch me and I know that you sued the previous one for not investing, I'd reject the pitch right away.

Just because you were rejected once, you want to sue? Wrong attitude, not the path to success. Other people probably pitch 50 investors before getting any money.

AAnonymous· Mar 13, 2015

"...men also face sexism, harassment, discrimination (there are plenty of women-only investors/programs/ internships..)."

Dude Seriously?? The top 20+ VCs that have the most resources, success rates, best overall industry contacts/guidance and top exits for their portfolios are pro-male and fund nearly 0.001 female startups to male.

So there are finally a handful of pro-female, smaller investment resources for women as of a few years ago because they ARE a very minority group in this industry and those tiny programs make YOU feel discriminated against?? Wow. You sound like those rich people who are mad because there are tiny government programs/grants for people who bust their ass 80 hr weeks but will likely never reach the comparable resource levels of certain people of society.

Second point: if she formally documents or sues or whatever she decides, it isnt because he didnt invest. Jerks invest too. Its because he was a blatant disrespectful, discriminating jerk toward her strictly for being born a certain way, in a professional setting, which in the US is against the law when it comes to getting an institutional loan, dealing with public facing financial institutions in general or employment pursuits. All publicly traded companies, selling stock on an exchange are all regulated by such rules of professional conduct in order to preserve the stability of the company as an asset on the market. Do you know of any openly racist Fortune 500 company successfully trading?

Professional VCs should be subject to the same standards of basic respect & equality in professional settings if they have the full intention of financially benefitting from portfolio companies seeking future outside rounds of investment &/or going public. Im sure they wont turn away any green money when that female founded company exits. That woman he puts down today, may come up with an intuitive technology tomorrow that could save his life or the life of one of his kids.

AAnonymous· Mar 13, 2015

Again, facing discrimination is not one gender only. You are the problem if you neglect/deny that fact.

Investors can do with their money whatever they want, even if they only invest in men, its their money and its their right to invest into who they want.

You certainly don't seem to have a problem with women only investors/programs/internships, where's your gender correctness there? You're the sexist person.

You are right that investors like money returns, so probably her idea or pitch was just plain bad.

I'm sure they won't turn away any good/promising idea/company just because of the gender.

AAnonymous· Mar 13, 2015

OP here- in fact, this VC has not invested in a single woman CEO- ever.

Again, the issue isn't about whether I got funded, it having to deal with sexism and discrimination. If someone was making racial slurs, it would be no different

AAnonymous· Mar 12, 2015

... And I can't emphasize this enough documenting without speaking up is a 20th century (insert expletive) move. You have to at least say, "what you just said was disrespectful because it undermines my value to our company and you don't make bad investments."

AAnonymous· Mar 12, 2015

Ugh. You probably can't sue, but the commenter above asks a lot of you and all women. It's not your job to put anyone in their place in the middle of a conversation, especially if you're like me (I am a female founder) and not that fast at the snappy rejoinder. You should definitely call out the behavior if you want to, but I've found the best way to deal with this shit is just not to deal with. Protect yourself, get out of situations like this immediately and find another way. There are other investors and approaches out there where you don't have to deal with it. Just route around this and all other obstacles and focus on your goals. It's not your job to punish or teach these fools, or whatever you're thinking here.

AAnonymous· Mar 12, 2015

OP here- I did say something at the time (as well as documenting). I called the guy out and he was defensive.

Then the kicker is that I got feedback through an adviser that new him that I was "over emotional"

It was a total clusterfuck

AAnonymous· Mar 12, 2015

There is no legal basis to sue an investor for gender discrimination. Period.

They are under no obligation to meet with you, let alone fund your company.

Move on, find different investors. Try to make this post the last time you think about that VC.

Use your energy to find the investor who cares about your idea and not your gender. Put that energy into enhancing your pitch deck. Anything to move forward.

Good luck.

AAnonymous· Mar 13, 2015

Are you a lawyer? Is that how you know there is no legal basis? Isn't a place of business bound by anti-discrimination laws?

Your logic doesn't work. It would be like saying that a store can say "whites only"- Black people don't HAVE to shop at that store... they can shop anywhere.

Would you tell someone black that had racists comments made to them at a store to just shop somewhere else?

AAnonymous· Mar 14, 2015

Show me the relevant precedents that show someone has successfully sued for failing to invest based on protected class law.

The ground between "a whites only" store and suing someone over not making an investment in a nascent venture is a quite large.

OP should focus her efforts on her product and other investors.

AAnonymous· Mar 12, 2015

Either name and shame or move on. Suing is a bad idea.

Pointing out sexism (or even just talking about sexism) may get you blacklisted in the valley, but standing up for yourself is never without risk.

Investors really don't like it when their name gets associated with "mysoginist asshole". So hit 'em where it hurts (but don't stretch the truth).

AAnonymous· Mar 13, 2015

It runs a high risk of blacklisting which is why most women don't do it.

Naming and shaming IMO is a terrible idea because it puts everything in the court of public opinion. And anyone can bad mouth someone else- not really a great way to get ahead.

Suing is a way to hold men accountable- and I think that they need a big wake up call. There have to be consequences to their behavior (besides public humiliation) because as a woman, I am tired of paying the price.

AAnonymous· Mar 13, 2015

All options are bad because the power dynamic is so lopsided.

Do nothing, and the sexist status quo is enforced.

Unfortunately "he said, she said" cases rarely meet the standard of evidence required by the justice system for a conviction. It's also emotionally and financially draining.

When naming and shaming the woman gets to frame the discussion in a favorable publication. Of course both parties will end up looking bad, even when the investors are 100% at fault.

One other option is anonymous naming and shaming. It greatly reduces the professional risk for the woman, and it may give other people the courage to speak out about their encounters with sexist investors too. The investors are likely to be repeat offenders after all.

Anyway, I sympathize with your situation and I hope we're getting close to a cultural tipping point.

AAnonymous· Mar 13, 2015

Its really very sad that the most advanced industry on the planet, whose core motto is 'disrupt the status quo' to move the world forward requires that half the human population function as though we've gone back a century or two in basic human respect & equality for fear of public blacklist, shame or outcast.

AAnonymous· Mar 14, 2015

+1

AAnonymous· Mar 14, 2015

Once you raise your round, name and shame.

If you have traction you can say anything you want and still get funded. So let that piece of shit be a motivation to win so you can revel in naming them.

Til then, hang tough.