Startup founder Elizabeth Giorgi is hoping to trigger a chain reaction in startup due diligence by requiring potential investors to disclose all allegations of gender discrimination or sexual harassment in the company’s fundraising documents.
The CEO of the Denver-based Soona asked her lawyers draw up the requirement, dubbed the ‘candor clause,’ after a potential investor sent Giorgi unsolicited nudes. But she hopes other founders will use the open-source legal disclosure to also protect themselves.
In an industry that has drawn scrutiny for longstanding gender discrimination and sexual harassment, Giorgi says that the clause has rapidly accelerated the pace of trust building with investors.
Investors in Giorgi’s company also supported the clause, with one investor telling Business Insider that including such a provision was a “no brainer.”
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Like many tech startups, Elizabeth Giorgi’s media production firm recently raised venture capital funding. But before the funding deal closed, investors in Giorgi’s startup had to fill out a special document disclosing any allegations of gender discrimination or sexual harassment.
The so-called “candor clause” is something that Giorgi’s startup, Soona, requires of all potential investors. It’s similar to the criminal background disclosure that some …read more
Source:: Businessinsider – Strategy