Google Shifts Away from Diversity-Focused Startup Funding, Raises Concerns Over DEI Commitment

Starfolk

Starfolk

March 07, 2025 · 4 min read
Google Shifts Away from Diversity-Focused Startup Funding, Raises Concerns Over DEI Commitment

Google's Startup Founders Fund webpage has undergone significant changes, with all programs for underrepresented founders listed in the past tense, sparking concerns over the tech giant's diversity, equity, and inclusion (DEI) commitment. The webpage, which was updated after December, now states that there are zero fund programs available, raising questions about the future of Google's support for startups with underrepresented founders.

The Google Startup Founders Fund was launched in 2020 to provide monetary grants, mentorship, and product support to startups with underrepresented founders, including women and those from African and Latino descent. According to the webpage, the program has given more than $50 million in support to over 600 founders. However, the grant landscape has changed significantly since 2020, with many programs targeted towards minorities facing fierce political and legal attacks.

Tech founders and investors have been wondering what would happen to grant programs like Google's Startup Founders Fund amid the backlash against DEI initiatives. The webpage now lists programs such as the Women's Founders Fund, Latino Founders Fund, Ukraine Support Fund, Black Founders Fund U.S., and Black Founders Fund Brazil as "past" funds. Additionally, the site says "zero" grant programs are currently available in any region, although programs that train founders on Google's AI products and US accelerators for startups in certain industries (energy and climate) are accepting applications.

It is unclear which of these programs have formally ended, been suspended, or are being restructured in other ways. Google's response to inquiries about the status of the programs was vague, implying a focus shift away from underrepresented founders and towards AI startups. A spokesperson stated, "We have not yet opened applications in the U.S. for Google for Startups Funds in 2025. Google for Startups is supporting all past cohorts of Founders Funds in our alumni community. In 2025, we'll invest in AI-focused startups in the U.S. and we will share more specifics at a later date."

TechCrunch observed other changes in the language of the program's web pages. In December, the site specifically stated that the grants "provided more than $50 million to support underrepresented founders," whereas today, the word "underrepresented" has been removed. An archived page from January 21 shows Google used to describe the program's purpose as "financial support for underrepresented communities" and "to help underrepresented and at-risk founders build and grow their businesses." Currently, Google says the program is "financial support for innovators," and hands-on support "to help founders build and grow their businesses."

Google did not respond to requests for comment about the language change on the site. The shift in language and focus comes as the Trump administration puts pressure on the public and private sector to roll back DEI programs. Google announced earlier this month it would no longer have diversity targets and also removed mention of DEI in its annual 10-K filing.

The move is part of a larger trend, with companies like Meta and Amazon also adjusting their DEI wording and activities. Reuters reported this week that companies that have publicly distanced themselves from DEI have done the opposite in private, revealing the delicate balance businesses are facing today as they seek to avoid DEI legal challenges. U.S. grant programs targeted towards specific segments of underrepresented communities have been under attack for a while, with Fearless Fund famously having to settle a lawsuit over its grant program for Black Women founders and shut the program down in September. PayPal is also currently being sued for its grant commitment to Black and Latino founders over allegations that it discriminates against other races.

The changes to Google's Startup Founders Fund webpage raise concerns about the tech giant's commitment to diversity, equity, and inclusion. While Google has made significant investments in supporting underrepresented founders, the shift in focus and language may signal a retreat from its DEI initiatives. As the tech industry continues to grapple with the challenges of promoting diversity and inclusion, Google's move may have far-reaching implications for startups and founders from underrepresented communities.

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