Term Sheet Clause to drive Diversity, Equity & Inclusion
At Clean Energy Ventures, we recognize and acknowledge the inequality and biases that exist within our communities of venture capital. Venture capital firms, including our own, are dominated by white males. And the data shows this results in unconscious bias that drives funding away from startups led by women, people of color and other underrepresented groups. Facts also tell us that climate change is poised to disproportionately effect historically disadvantaged communities.
At an organization, we’re committed to positively impacting Diversity, Equity and Inclusion (DEI). We make this commitment because we believe it is the right thing to do and because we know, from data, that diverse and inclusive teams outperform their homogenous peers. Companies in the top quartile for ethnic diversity are 33 percent more likely to have industry-leading profitability. To save the planet from the effects of climate change we need the strongest teams possible positioned for global success.
Diversity Term Sheet Clause for Venture Capital
We include the following language in every term sheet we provide to a potential investment. This is also translated into our transaction documents for investment. We provide this language openly to the community so that other venture capital firms can include it in their own term sheets and help drive a more diverse, equal and inclusive startup community.
Clean Energy Venture Fund strives to invest in companies that consciously work to create a diverse, equal and inclusive work environment. As a condition of the Closing, we require that you institute a Diversity, Equity & Inclusion (“DEI”) policy to encourage hiring of a diverse team, provide equal and fair treatment for all team members, and ensure a workplace environment where all team members feel valued and have the opportunity to fully participate in creating business success. This DEI policy shall (1) require that at least one woman and/or member of an ethnically underrepresented group within the Company be formally interviewed for any open position, (2) shall institute a policy of equal pay and benefits regardless of gender and ethnicity or other protected group, and (3) shall put in place an inclusivity plan to educate employees on unconscious bias and to promote an inclusive work environment.
For more information or questions, email Dan Goldman or Ted Dillon at Clean Energy Ventures.
Tools & Resources
Our DEI Strategy
Diversity VC
Browning the Green Space
Diversity Playbook
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