附近上门

Startups that launched and scaled with a focus on aiding workplace diversity, equity and inclusion efforts a few years ago haven鈥檛 been heavy recipients of follow-on funding of late.

That鈥檚 not exactly surprising. The DEI movement has been under fire for a while from a large political faction that includes newly inaugurated .

Last week, Trump began his term with an executive order to end DEI programs in federal agencies. The administration put federal employees working on such programs on , with the expectation that they will soon be fired.

Thus far, it鈥檚 unclear what the administration鈥檚 anti-DEI stance means for private-sector efforts around diversity and inclusion. Large cap companies still commonly a chief diversity officer or similar role. Mission statements around promoting diversity and also remain popular at and other prominent brands.

Even so, the cultural shift around DEI is undeniable. And that鈥檚 visible in the chilly environment for venture funding in the space.

DEI used to be a description favorite

It wasn鈥檛 always so. From roughly 2020 to early 2023, diversity initiatives were de rigueur, and a sizable crop of startups raised funding for businesses aimed wholly or in part at helping employers achieve their goals.

Using 附近上门 , we put together a list of 19 companies funded in the past five years that appear to fit this description.

As we mentioned, the level of focus on DEI efforts varies among the listed companies.

Some carved out brands heavily associated with diversity hiring. For example, recruiting platform raised a $50 million Series C at a $400 million valuation in 2021, with a stated 鈥渢o set the industry standard for increasing diversity in Corporate America.鈥�

Another, , which works with organizations to hire, retain and promote underrepresented talent, secured over $30 million in a 2022 financing. In tandem, it pitched a plan to build a portal for HR leaders to learn best practices from DEIB, or diversity, equity, inclusion and belonging, experts.

Others promoted diversity-related offerings alongside other features. For instance, when talent sourcing platform announced a at a $1.2 billion valuation, it focused on its AI capabilities but also talked up its utility in diversity recruiting.

Or when talent marketplace its Series B funding in 2021, the company summarized its core offering as 鈥渄eep AI personalization and a commitment to diversity and inclusion.鈥�

But while descriptions of their business models varied, there was a common trend among startups to, when possible, highlight in funding announcements how their offerings might advance DEI goals.

Not so much now

That鈥檚 not so much the case now.

For one, we鈥檙e not seeing a lot of funding announcements for diversity-minded companies tied to hiring and retention. Most of the companies on our list above haven鈥檛 raised fresh capital since 2021 or 2022.

Additionally, funded companies seem less likely to put their DEI-related capabilities front and center. A survey of homepages of companies on our list shows that most don鈥檛 currently feature the acronym DEI.

Diversity hiring capabilities are also getting downplayed. For instance, when was acquired last year by , the deal initially described the acquiree as 鈥渁n early career talent platform that connects students with top companies.鈥� Untapped mentioned its capabilities as 鈥渁 platform to hire qualified and diverse intern and new grad talent鈥� at the bottom.

Employment startups overall are raising less capital

However, it鈥檚 not only DEI-focused companies that are getting less funding.

In 2024, funding across stages to U.S. companies in the employment, recruiting and career planning sectors totaled $988 million 鈥� down from $1.73 billion a year earlier. In 2021 鈥� the market peak 鈥� companies in those spaces raised more than $7.5 billion, per 附近上门 data.

The job market, of course, is also in a much different place than it was a few years ago. Tech industry hiring, in particular, is much more muted than during the market peak, with job seekers to find employment. Employers, meanwhile, are finding more applicants for many job postings than they can easily screen.

Overall, it鈥檚 not a bad situation for employers. But for startups in the recruiting space, DEI-focused or not, it鈥檚 not an optimal environment for fundraising.

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