Twitter used to be a safe space to talk about any and everything; now, the app is partially riddled with controversy and false promises.
In recent news, Forbes wrote an expose on how Twitter was on board to support underrepresented venture capital firms, many Black-owned, but backed out. According to the report, a former Twitter employee said numerous venture capital firms who received funds got a note in January from their last remaining contact informing them that the new owner, Elon Musk, gutted the team working with them.
The note explained that someone was still working with Musk and would reach out with further details—if any. “The person who did this was trying to help some of the GPs or general partners who were hurt by the departures,” one venture capitalist said. “They apologized for their inability to do better by them.” Twitter promised to invest up to $2 million each, or close to $20 million overall, in those firms.
One of the firms in question is 7th Ave, a Black-owned startup, a toolmaker for web3 creators. The pulled funding put a damper on things. Fund managers like Kari Harris are stunned that something like this has happened.
As told by AfroTech, if Twitter defaults on payments, the next option for VC firms is to shrink their fund size or bring on additional interest until payment is received. “There are real-world consequences of a default,” Harris, a funds practice chair for Mintz Investments, said. “The reality is that it never happens; 99% of the time, the parties are going to work it out and come up with an answer.”
According to a Twitter blog post by Dalana Brand, VP, People Experience and Head of Inclusion & Diversity, the platform is looking to invest in women, Black, and Latinx founders by 2025.
