Ron Conway (SV Angel Founder) – TechCrunch Disrupt (May 2015)

Chapters

Abstract

Tech Industry’s Growing Civic Responsibility: Addressing Social Challenges and Embracing Philanthropy

Introduction: The Interplay of Technology and Society

In an era where technology greatly influences every aspect of society, the tech industry’s civic responsibility has never been more critical. This article examines key figures like Fred Wilson, Ron Conway, and Kim-Mai Cutler, who spotlight the imperative role of tech leaders in civic engagement, addressing wealth inequality, workforce development, and the housing crisis, particularly in San Francisco. It also explores Airbnb’s contentious impact on housing and the movement towards data transparency and philanthropy in the tech sector.

Civic Engagement: A Cornerstone for Tech Leaders

Civic engagement initiatives like “SF City” and “Circle the Schools” in San Francisco, highlighted by entrepreneur Ron Conway, demonstrate the tech community’s efforts to address local issues like taxation and education. However, these actions, while commendable, are not panaceas for systemic problems like the housing crisis and income disparity.

Tech Industry’s Role in Educating Civic Leaders:

Tech leaders can also play a role in educating civic leaders about the importance of technology and its impact on society. By providing them with information and insights, tech leaders can help civic leaders make informed decisions about policies that affect the tech industry and society as a whole.

Effective Communication and Collaboration:

Effective communication and collaboration between the tech industry and civic leaders are crucial for addressing societal challenges. Tech leaders can use their communication skills and platforms to engage with civic leaders and the public, while civic leaders can provide tech leaders with insights into the needs and challenges of their communities. By working together, the tech industry and civic leaders can find innovative solutions to societal problems.

Tackling Wealth Inequality and Workforce Development

Wilson posits that tech leaders must educate and engage with civic authorities on critical issues, particularly wealth inequality and workforce development. He emphasizes the importance of public education reform to equip students with 21st-century skills and advocates for adult education and retraining programs, acknowledging the challenges but underscoring their necessity.

Addressing Workforce Development and Education:

The tech industry needs to collaborate with educational institutions to ensure that students are equipped with the skills necessary for the modern workforce. Both K-12 education and adult education programs are important for addressing workforce development needs. Tech companies can provide financial support to schools, develop curriculum, and offer mentorship and internship programs. They can also work with government agencies to create policies that support workforce development.

Tech Industry’s Role in Creating Opportunities:

The tech industry can also play a role in creating opportunities for people from all backgrounds. By providing access to education, training, and employment, tech companies can help to level the playing field and create a more diverse and inclusive workforce.

The Housing Crisis: A Call to Action

Journalist Kim-Mai Cutler and Conway bring attention to San Francisco’s acute housing crisis, with exorbitant rents and inadequate housing exacerbating the situation. Despite Mayor Ed Lee’s efforts to increase housing units, the measures are deemed insufficient given the city’s growing population. The upcoming housing bond is a step, but more comprehensive solutions are needed.

Mayor Lee’s Housing Initiatives:

Mayor Ed Lee aims to achieve the 30,000 housing unit goal by building 5,000 units in the first year and placing a $250 million housing bond on the November ballot. The bond is expected to leverage additional funds and create thousands more units for low- to middle-income residents. These initiatives aim to address the housing needs of not only school teachers, cops, and firefighters but also entry-level tech workers facing affordability challenges.

Collaboration for Affordable Housing:

To address the housing crisis, the tech industry can collaborate with government agencies, non-profit organizations, and community groups. Tech companies can provide funding, technology, and expertise to support affordable housing projects. They can also advocate for policies that promote the development of affordable housing.

Airbnb’s Impact on Housing: A Dual Narrative

Airbnb’s influence on rent prices and displacement of renters is a polarizing topic. Critics argue that Airbnb exacerbates housing shortages by reducing available long-term rentals, leading to higher rents. Airbnb counters this claim, suggesting its platform is not a significant factor in renter displacement and, instead, provides economic benefits through tourism and additional income for hosts.

Regulation and Data Transparency: Striking a Balance

The debate over imposing caps on Airbnb rentals and the platform’s data transparency reflects broader concerns about the tech industry’s impact on housing. While Airbnb resists regulatory caps and data sharing obligations, there’s a growing call for greater transparency from tech companies. This transparency, balanced against user privacy, is crucial for dispelling fears and building public trust.

Balancing Data Sharing and Privacy:

Companies should be proactive in sharing their data to address unfounded fears about their services. Companies can use anonymized and aggregated data to make a case for their positive impact. There are limits to what companies can share without violating the trust of their users. Striking the right balance between data sharing and privacy is essential for building trust and maintaining a healthy relationship between the tech industry and society.

Philanthropy: The 1-1-1 Model and Beyond

The 1-1-1 or Pledge 1% model, championed by Marc Benioff, Ron Conway, and others, represents a structured approach to corporate philanthropy. This model, involving equity, products, and employee time, is increasingly adopted by tech companies. Initiatives like the Pledge 1% campaign in New York signify a growing recognition of the tech industry’s potential to contribute positively to social causes.

Pledge 1% Program Launch in New York:

Salesforce and Robin Hood Foundation partner to launch the 1% Pledge campaign in New York. CEOs commit 1% of their company’s equity, volunteer time, and product (if applicable) to philanthropy. This aligns with Salesforce’s founding principle and has been adopted by many tech companies.

Benefits of the Pledge:

Companies can allocate 1% of their equity to charities of their choice, fostering a culture of giving. After going public, the pledged equity can have significant value, as seen in cases like Yelp and Google.

Promoting Founder Participation:

Fred Wilson suggests that law firms servicing startup founders could simplify the process of pledging founder stock to a foundation. This would encourage more founders to participate, as many lack the knowledge or resources to do so independently.

Volunteerism System and Matching:

Wilson emphasizes the need for a volunteerism system that connects individuals with opportunities that align with their skills and interests. He highlights the challenges in finding enough software engineers to teach computer science in schools, despite existing programs. Platforms like LinkedIn or Indeed.com could be adapted to facilitate better matching between volunteers and organizations.

Venture Capital Firm Endorsement:

Ron Conway encourages venture capital firms to endorse the 1% Pledge when CEOs inquire about making the commitment. This shows support for the initiative and aligns with the values of corporate social responsibility. Many firms, including Andreessen Horowitz, have already expressed their endorsement.

A Path Forward for Tech Industry’s Civic Role

The tech industry’s civic engagement, particularly in addressing societal impacts, wealth inequality, workforce challenges, and housing issues, is vital. The sector’s move towards greater philanthropic contributions and transparency symbolizes a maturing understanding of its broader societal responsibilities. This evolution, while complex, is essential for creating sustainable, positive change in an increasingly tech-driven world.

Notes by: Simurgh