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Tech companies have long struggled to hire and support Black employees and entrepreneurs. Just 1 percent of venture-backed companies were led by Black entrepreneurs from 2013 to 2018 according to a study by RateMyInvestor, which analyzes tech investors.
IN SILICON VALLEY - WHERE ENTREPRENEURS AND INVESTORS ever so often preach high -minded missions and style themselves as management gurus, Coinbase has held itself up as a model.
Since the start-up was founded in 2012, Brian Armstrong, the chief executive, has ensemble memos and blog posts about how he built the $8 billion company's culture with distinct hiring and training practices. That has won him acclaim among influential venture capitalists and executives.
But one by one, they left. Some quit, Others were fired. All were black.
The 15 people worked at Coinbase, the most valuable U.S. cryptocurrency start-up, where they represented roughly three-quarters of the Black employees at the 600-person company.
Before leaving in late 2018 and early 2019, at least 11 of them informed the human resource department or their managers about what they said was racist and discriminatory treatment, five people with knowledge of the situation said.
One of the employees was Alysa Butler, 25, who worked in recruiting. During her time at Coinbase, she said, she told her managers several times that he and others excluded from meetings and conversations, making her feel invisible.
''Most people of color working in tech know that there's a diversity problem,'' said Ms. Butler, who resigned in April 2019. ''But I've never experienced anything like Coinbase.''
But according to 23 current and former Coinbase employees, five of whom spoke on the record, as well as internal documents and recordings of conversations, the start-up has long struggled with its management of Black employees.
One Black employee said her manager suggested in front of colleagues that she was dealing drugs and carrying a gun, trading on racist stereotypes. Another said a co-worker at a recruiting meeting broadly described Black employees as less capable.
Still another said managers spoke down to her and her Black colleagues, adding that they were passed over for promotions in favor of less experienced white employees. The accumulation of incidents, they said, led to the wave of departures.
''It was the first time I realized what racism felt like in the modern world,'' said Layllen Sawyer, a compliance analyst who is Black. ''I felt like I was being bullied every day at work.'' She said she filed a discrimination complaint with Coinbase's legal department before quitting in 2018.
Kim Milosevich, a Coinbase spokeswoman, said the company ''does not tolerate racial, gender or any other forms of discrimination.''
She added, ''All claims of discrimination are treated very seriously, investigated by both internal and third parties, and the appropriate action is taken.''
Ms. Milosevich said Coinbase had a record of only three official complaints from the 2018-19 period and none from Ms. Butler. Ms. Milosevich said the three complaints, including Ms. Sawyer's, were investigated and found to be unsubstantiated.
Ms. Buller said she was not told how to make an official complaint; Ms. Sawyer said she never spoke to an investigator and was not informed of the findings.
Last week, before publication of this article, Emilie Choi, Coinbase's chief operating officer, wrote an email to employees to pre-emptively question the article's accuracy and said, ''We know the story will recount episodes that will be difficult for employees to read.''
The company posted the email to its public blog.
The Honor and Serving of the Latest Global Operational Research on Racism, Unethical Practices, Injustices, continues. The World Students Society thanks author Nathaniel Popper.
With respectful dedication to the Leaders, Students, Professors and Teachers of the world. See Ya all prepare and register for Great Global Elections on The World Students Society : wssciw.blogspot.com and Twitter - !E-WOW! - The Ecosystem 2011 :
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