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Fighting Bias in Silicon Valley, one stat at a time. From American Public Media, this is Marketplace

Tech. I'm Lili Jamali.

San Hill Road in Silicon Valley's Menlo Park is often referred to as the main street

of venture capital. Funding from these influential firms can launch a startup into the big time,

sometimes unicorn status. But just 2% of venture capital goes to all female teams. That figure is

even lower for black women and Latina founders. A bill just passed by California lawmakers offers

a first in the nation push to gather the stats on who's getting all that highly sought after cash.

Governor Gavin Newsom has until next week to sign it into law. I spoke with reporter

Hanisha Harjani of the Fuller Project about how it would work. This bill would require venture

capital firms to, for the first time ever, disclose the demographic data of the founders they

fund to the California Civil Rights Department. It would apply to venture capital firms that are

based in and have significant operations in California as well as those investing in California

companies and soliciting investments from residents of the state. So since venture capital is a huge

industry in Silicon Valley, this would likely ripple beyond the state to Wall Street and the rest

of the country, maybe even the rest of the world. And what sort of penalties does the bill outline

if any? Yeah, so if companies refuse to disclose this demographic information, the bill empowers

the state to take them to court and penalize them for their non-compliance. It also states that

the Civil Rights Department could potentially use the data provided to bring further civil action

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