The DEI Backlash in VC: Why I'm More Fired Up Than Ever

by Sophie Winwood, co-founder & CEO of unlock VC

Feb 28, 2025

Guest post by Sophie Winwood, co-founder & CEO of unlock VC

I’ve heard the phrase ‘DEI backlash’ so many times this year that it’s starting to sound like white noise. The recent developments are stark: Since Trump’s executive order ending federal diversity, equity and inclusion (“DEI”) policies Google has removed DEI references from annual reports, Meta has disbanded its internal DEI team, and Goldman Sachs walked back its diverse board member requirements for IPOs.

The justifications I keep hearing range from upsetting to downright insane:

“It’s not worth the time. We haven’t seen any results.”
“It promotes preferential treatment. Less qualified candidates are being fast-tracked into leadership roles.”
“It served its purpose. We’ve solved it.”

While DEI encompasses many dimensions, I will focus specifically on how the recent DEI pushback is affecting women in venture capital. As the founder of unlock VC, a platform and community for women in venture capital, I’ve witnessed firsthand the impact of this backlash. After many conversations, questions and observation of shifting industry dynamics, I’m ready to share how I feel . . .

I feel motivated, fired up, and, to be honest, exactly the same as when I started this business. We are going to prove everyone who blindly follows consensus wrong.

Let’s demolish these arguments one by one, and give you some talking points next time it comes up in conversation:

“It’s not worth the time. We haven’t seen any results.”

This view is both shortsighted and wilfully blind to the progress we’ve already made. The data is clear: more diverse teams drive more successful companies, and more diverse funds drive better returns.

Look at the UK, where VC signatories of the investing in women’s code consistently outperform the equity market in supporting teams with female founders.

Within our community, 33 women made partner or higher in 2024. There are now 20 all women led funds in Europe, including five solo GPs — Common Magic, OpenseedVC, Araya Ventures, Cocoa and Puzzle Ventures.

The impact becomes even more evident at events like our annual summit, which brings together over 400 women in venture capital.

The stories I hear are powerful testaments to why our work matters now more than ever. Participants found seeing a room full of incredible women in the industry gave them “hope that things are changing in the ecosystem” and that the safe space we create for open and honest conversation “promotes solidarity”.

So let’s think about this practically. Venture capital is a game of diversification, of outliers and exceptions, of going against consensus. How can we believe we’ll find and fund the best, most innovative, category-defining companies if everyone looks the same, has access to the same networks, and thinks the same about what the future should be? That just doesn’t make sense.

Just look at Amazon, Google, and Meta — all founded and backed by white men. Now imagine what the tech landscape might look like if these companies were founded by mixed or all-women teams. What different problems might they have solved? What other approaches might they have taken? Would they be more alive to the potential and importance of promoting inclusive practices?

“It promotes preferential treatment. Less qualified candidates being fast-tracked into leadership roles.”

Let’s talk about preferential treatment.

VC is already a network-based business that’s notoriously hard to break into. Jobs typically only go to people either already within the industry or from certain networks. Funding overwhelmingly favors ‘warm intros.’ If anything, this status quo leads to preferential treatment, not merit-based decisions.

By creating and supercharging networks for female investors, we ensure that women are also in the rooms where it matters. This means decisions can be made between the best candidates rather than just the ones in your existing network.

I’m tired of the zero-sum thinking that if women succeed, men don’t.

We need to move past the idea that we should support women because it’s the “right thing to do.”

No — we want the best investors to generate the best outcomes, period.

“It served its purpose. We’ve solved it.”

Anyone working in VC knows this is laughably false.

Only 16% of general partners (GPs) are women in Europe, who manage only 9% of total AUM, compared with 91% of AUM raised by male GPs.

Only 2% of venture capital funding goes to all-women teams. This is even more pronounced when you look at the data from an intersectional perspective — for example only 0.34% of venture capital funding goes to Black woman start-up founders in the US.

I think that’s enough evidence? Don’t you?

A challenge to the VC industry

So, VC industry, I ask you:

Do you want access to differentiated networks?
Do you want diversity of thought on your Investment Committee?
Do you want teams with different experiences, life challenges, and interests so you can see what others can’t?
Do you want to invest in the best companies that represent the customers they serve?

If yes, then does it really make sense to exclude half the population?

Our mission remains crystal clear: we want more women at the top, we want an industry that genuinely wants and values women in these positions, and we want an industry that thrives because of it.

By creating spaces for authentic connection and honest dialogue, we’re building more than community — we’re making a movement.

This is what real progress looks like: not just diversity in numbers, but a genuine sense of belonging and empowerment.

Join the movement
At unlock VC, we’re committed to driving these conversations forward. To be part of the change, follow us on Luma to find our next events and join our 1k+ strong WhatsApp group of women in VC. Together, we’re shaping the future of venture capital.