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XLatinx Workers Face Greatest Pay Disparities in LA Tech Scene, Report Finds

While the predominantly young, white Los Angeles tech scene has made strides to improve diversity, deep inequities remain.
Women earn 78 cents for every dollar made by a male tech worker. Black and Latinx investors are underrepresented at venture firms and the majority of venture investments goes toward white and Asian-owned businesses, according to PledgeLA's survey of Los Angeles tech companies and venture firms released Wednesday.
"Tech oftentimes likes to think of itself as a very equal, egalitarian space," said Jasmine Hill, a UCLA sociology professor who analyzed the data for PledgeLA. "But the data shows something different."
The third annual report shows some improvement in representation but persistent pay disparities and lack of inclusion among L.A.'s tech scene.
The findings are based on self-reported data from 173 companies that have signed onto PledgeLA's initiative, including Bird, sweetgreen and Dollar Shave Club.
The report found Black and Latinx workers make less money than their peers. On average, East Asians made $120,000, South Asians made $100,000, white workers made $90,000, while Black and Latinx workers made $75,000 and $60,000 on average, respectively — a disparity shared even at higher levels of experience.
Employees who identify as LGBTQ+ and employees with disabilities responded that they "cover" a part of their identities at work, and said they "felt the need to avoid conversations about their identity at work."
"We're paid – and I'm saying 'we're' because I'm Black – significantly less than our white, Asian counterparts," said Qiana Patterson, the chair of PledgeLA. "And I think we all know that that's just not because Black and Latinx people don't have the degrees, or the experience, but that there's just bias embedded in our hiring practices."
Hill said the report is not representative of the entire L.A. tech scene because it only includes data from the participating PledgeLA companies. PledgeLA was able to get a higher participation rate from PledgeLA companies for its survey this year – from around 65% to around 81% – which allowed the nonprofit to break down earning data by race.
Other findings of the report include:
- Workers reported improvements in company culture and transparency in hiring. Workers at mid and large-sized companies also reported improvements.
- Though PledgeLA VCs predominantly funded white and Asian-owned businesses, they are more likely to fund female, Latinx and Black-owned businesses compared to the U.S. average.
- Investments to businesses with Black founders increased by 71% from 2020.
- Investors at PledgeLA VCs are predominantly white, though VCs reported increases in investors who identify as LGBTQ+ and investors with disabilities.
- Women earned an average of $20,000 less than men regardless of role or experience, and women who have over 20 years of experience earned $90,000 less than men with a similar level of experience.
- Nearly a third of workers reported feeling "neutral to very uncomfortable" when reporting workplace issues and nearly half said their coworkers were the source of improper conduct at work.
PledgeLA is hoping to carry the momentum built after the nation experienced a racial reckoning following the death of George Floyd in May 2020.
Calvin Selth, a program lead at Annenberg Tech, said he was encouraged to see lots of VCs and companies continue to support underrepresented groups after the summer of 2020 – shown by the increase in VC funding to Black founders – but emphasized the need for improvement.
"We're tracking this every year because we want to know that it's not a blip," Selth said. "I'm encouraged by more open dialogue about this, but I think there needs to be continued focus and more effort from VCs to track this kind of data themselves."
In addition collecting the data, PledgeLA hosts the PledgeLA Founders Fund, which gives $25,000 grants to Black and Latinx-owned businesses, and a VC internship program aimed at women, people of color and underrepresented groups.
PledgeLA also plans to raise $1 million in the next two years for the PledgeLA Founders Fund and is aiming to create a task force to help companies address racial and gender pay equity.
"The data itself is only as powerful as the action that we take," Patterson said. "And I hope that, in reading this analysis and the data around it, It spurs more people to sign the pledge, more people to be a part of this ecosystem in a meaningful and an intentional way."
Editor's note: dot.LA is a participant in PledgeLA and co-founder Spencer Rascoff sits on the board.
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This Week in ‘Raises’: Improvado Hauls $22M, Clearlake Launches $14B Fund
Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
This week in “Raises”: A pair of Web3 platforms for gamers landed funding, as did a Manhattan Beach medical startup looking to bolster primary care via nurse practitioners. Meanwhile, a Santa Monica-based investment firm launched its seventh fund with more than $14 billion in dry powder.
Venture Capital
Improvado, a marketing data aggregation platform, raised $22 million in a Series A funding round led by Updata Partners.
Web3 gaming platform FreshCut raised $15 million in funding led by Galaxy Interactive, Animoca Brands and Republic Crypto.
Medical startup Greater Good Health raised $10 million in a funding round led by LRVHealth.
Joystick, a Web3 platform for gamers and creators, raised $8 million in seed funding.
Open source data protection company CipherMode Labs raised $6.7 million in seed funding led by Innovation Endeavors .
Mobile phone charging network ChargeFUZE raised $5 million in seed funding led by Beverly Pacific, TR Ventures, VA2, Jason Goldberg and Al Weiss.
Polygon, a startup aiming to better diagnose children with learning disabilities, raised $4.2 million in seed and pre-seed funding led by Spark Capital and Pear VC.
Pique, a virtual women's sexual health clinic, raised $4 million in a seed funding round led by Maveron.
Psudo, a sneaker startup that utilizes recycled water bottles and 3D sublimation printing to create its shoes, raised $3 million in a seed funding round led by SternAegis Ventures.
Funds
Santa Monica-based investment firm Clearlake Capital Group raised $14.1 billion for its seventh flagship fund.
Raises is dot.LA’s weekly feature highlighting venture capital funding news across Southern California’s tech and startup ecosystem. Please send fundraising news to Kristin Snyder (kristinsnyder@dot.la).Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
LA Tech ‘Moves’: New Head of Originals at Snap, New President at FaZe Clan
Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
“Moves”, our roundup of job changes in L.A. tech, is presented by Interchange.LA, dot.LA's recruiting and career platform connecting Southern California's most exciting companies with top tech talent. Create a free Interchange.LA profile here—and if you're looking for ways to supercharge your recruiting efforts, find out more about Interchange.LA's white-glove recruiting service by emailing Sharmineh O’Farrill Lewis (sharmineh@dot.la). Please send job changes and personnel moves to moves@dot.la.
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FaZe Clan brought on Zach Katz as the gaming and media company’s new president and chief operating officer. Katz was previously the chief executive officer of the music tech investment fund Raised in Space Enterprises.
TikTok brand factory LINK Agency promoted Dustin Poteet to chief creative officer. Poteet was previously creative director at the firm.
Livestream shopping platform Talkshoplive hired Tradesy co-founder John Hall as its chief technology officer. Universal Music Group Nashville's former vice president of digital marketing, Tony Grotticelli, also joins the company as vice president of marketing.
Anjuli Millan will take over as head of original content at Snap after three years of overseeing production for the division.
Tech and media company Blavity hired Nikki Crump as general manager of agency. Crump joins the company from Burrell Communications Group.
O'Neil Digital Solutions, which provides customer communications and experience management for the health care industry, hired Eric Ramsey as national account sales executive. Ramsey joins from T/O Printing.
Investment firm Cresset Partners named Tammy Funasaki as managing director of business development. Funasaki previously served as head of investor relations for Breakwater Management.
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Kristin Snyder is an editorial intern for dot.la. She previously interned with Tiger Oak Media and led the arts section for UCLA's Daily Bruin.
Snapchat’s New Controls Could Let Parents See Their Kids’ Friend Lists
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.
Snapchat is preparing to roll out enhanced parental controls that would allow parents to see who their teenagers are chatting with on the social media app, according to screenshots of the upcoming feature.
Snap’s parental controls.
Courtesy of Watchful.
Snapchat is planning to introduce Family Center, which would allow parents to see who their children are friends with on the app and who they’ve messaged within the last seven days, according to screenshots provided by Watchful, a product intelligence company. Parents would also be able help their kids report abuse or harassment.
The parental controls are still subject to change before finally launching publicly, as the Family Center screenshots—which were first reported by TechCrunch—reflect features that are still under development.
Santa Monica-based Snap and other social media giants have faced mounting criticism for not doing more to protect their younger users—some of whom have been bullied, sold deadly drugs and sexually exploited on their platforms. State attorneys general have urged Snap and Culver City-based TikTok to strengthen their parental controls, with both companies’ apps especially popular among teens.
A Snap spokesperson declined to comment on Friday. Previously, Snap representatives have told dot.LA that the company is developing tools that will provide parents with more insight into how their children are engaging on Snapchat and allow them to report troubling content.
Yet Snap’s approach to parental controls could still give teens some privacy, as parents wouldn’t be able to read the actual content of their kids’ conversations, according to TechCrunch. (The Family Center screenshots seen by dot.LA do not detail whether parents can see those conversations).
In addition, teenage users would first have to accept an invitation from their parents to join the in-app Family Center before those parents can begin monitoring their social media activity, TechCrunch reported.
Christian Hetrick is dot.LA's Entertainment Tech Reporter. He was formerly a business reporter for the Philadelphia Inquirer and reported on New Jersey politics for the Observer and the Press of Atlantic City.