Silicon Valley

Silicon Valley’s Sexual-Harassment Crisis Keeps Getting Worse

The problem is much larger than Uber.
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From left, by Qilai Shen/Bloomberg/Getty Images, by David Paul Morris/Bloomberg/Getty Images, by David Paul Morris/Bloomberg/Getty Images.

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The chain reaction sparked by Susan Fowler, who accused Uber in February of fostering a toxic culture of sexism and harassment, continues to ripple through Silicon Valley, inspiring more women to come forward with accounts of gender discrimination and fueling a wave of resignations throughout the tech industry. Three months after she published the blog post that upended Uber, C.E.O. Travis Kalanick resigned, following some 20 other ousted employees out the door. Uber, of course, was not an anomaly, as the past weeks have made clear. And growing numbers of women are speaking up and making themselves heard. This week alone, the C.E.O. of another billion-dollar start-up resigned, and a venture-capital firm further distanced itself from its ousted founder.

Mike Cagney, the C.E.O. of $4 billion lending start-up Social Finance, announced that he’ll depart by the end of the year, and is stepping down from SoFi’s executive chairman position immediately, following allegations of fraudulent behavior and sexual misconduct by company executives. In a blog post Monday, Cagney said that a wrongful-termination lawsuit filed by a former employee had distracted from SoFi’s growth. “Recently . . . the focus has shifted more toward litigation and me personally,” Cagney said, referring to the lawsuit, which also accused managers of making sexual or otherwise inappropriate comments. “The combination of HR-related litigation and negative press have become a distraction from the company’s core mission.”

Early-stage venture fund 500 Startups was also dealing with the continued fallout this week from the resignation of founder David McClure, who stepped down earlier this year amid allegations of sexual harassment of female entrepreneurs. Axios reports that 500 Startups is now legally removing McClure from the firm’s funds in a bid to isolate and limit the damage to the company’s reputation. “While Dave has not had any involvement in any of the operations or management of the funds since his resignation in July, once effective, these changes will legally cement what has been in practice since early July,” C.E.O. Christine Tsai wrote in a letter to 500 Startups investors, obtained by Axios. “After this milestone, there will be a few more legal steps to complete Dave’s transition from the Firm. These are progressing well and we hope to have them completed shortly.”

McClure and Cagney are just the two latest executives to depart, following another exodus earlier this summer. Tom Frangione, the C.O.O. of Greylock, stepped down after his firm learned he’d had an undisclosed relationship with another Greylock employee that was deemed “inappropriate.” Female entrepreneurs accused Justin Caldbeck of Binary Capital of similar inappropriate behavior in June. Some even went on the record with their allegations, something nearly unheard of given the potential professional repercussions. Frank Artale, a managing director at Ignition Partners, resigned in July days after the firm received a complaint about Artale’s alleged misconduct.

The soul-searching isn’t limited to firms that were engaged in litigation. Even tech leaders who haven’t been accused of sordid harassment are grappling publicly with their complicity in an industry culture that has too often treated women as sex objects instead of equals. Still, it says much about Silicon Valley that so much of its self-reflection has been extracted at knifepoint. Venture capitalist Chris Sacca apologized in a nearly 3,000-word mea culpa for contributing to that culture, but only as The New York Times went to print with a story in which a female entrepreneur alleged that he “touched her face without her consent in a way that made her uncomfortable.” As women finally feel empowered to speak out about the alleged malfeasance of their male colleagues and other high-profile incidents involving diversity and gender bias, these reckonings will continue, hopefully in a constructive way. But the Valley’s overdue existential crisis has also fueled resentment among tech’s more fragile male egos. James Damore, a Google engineer, was famously fired last month after writing and sharing a 10-page anti-diversity memo with his coworkers, in which he criticized his employer for devoting resources to hiring and retaining more female employees. (He argued, among other things, that women are less biologically suited to work in technical fields.) He’s since retained a veteran Republican lawyer to defend him.