“Bro Culture” in Startups
I didn't serve in the military, join a fraternity, play weekend golf, or work in environments typically tied to "bro culture." However, through years of experience in the tech and finance industries, I've become well-versed in it. My understanding is further deepened by the frustrations shared by family members who have highlighted the obvious flaws within this culture.
Bro culture has emerged as a business issue due to shifts in demographics, diversity, equity and inclusion (DEI) initiatives, and evolving awareness. Many tech startups now recognize "bro behaviors" as a problematic dynamic, often involving young, aggressive, hyper-competitive males who influence workplace culture and decision-making processes.
Here are some key aspects of this situation:
Prevalence in Certain Industries: Bro culture is especially common in industries where women are underrepresented, such as technology and finance. Terms like "tech bros" and "crypto bros" have emerged to describe this phenomenon in Silicon Valley and cryptocurrency startups.
Characteristics of Bro Culture: Bro culture in startups is often characterized by aggressive, competitive behavior – especially on go-to-market (GTM) teams, a lack of diversity and inclusion, casual sexism and gender bias, an emphasis on partying and excessive risk-taking, and a focus on rapid growth at the expense of sustainable practices.
Toxic Work Environment: Many believe that Bro culture often leads to a hostile workplace, particularly for women and underrepresented groups, which can lead to a general feeling of exclusion for those who don't fit the "bro mold”.
Lack of Diversity: Startups and VCs are dominated by bro culture which creates homogeneous workforces and partnerships. Few companies (26%) among emerging companies have programs in place to improve diversity among their leadership teams, which is obviously not nearly enough.
Poor Decision-Making: Bro culture has a groupthink orientation that can lead to the random or reckless business decision making that comes with a lack of diverse perspectives in problem-solving.
Talent Retention Challenges: Many highly qualified professionals, particularly women and minorities, may choose to avoid or exit companies and venture capital firms that exhibit a pronounced "bro culture." This culture can foster an unwelcoming environment, lacking opportunities for professional development and tangible management responsibilities, which significantly contributes to talent retention challenges within these organizations.
Legal and Reputational Risks: Companies with toxic bro cultures are at heightened risk of lawsuits, negative Glassdoor reviews, unfavorable media coverage, and reputation damage.
The persistence of bro culture in startups is driven by factors like the underrepresentation of women in leadership, limited HR infrastructure in early-stage companies, pressure for rapid growth, unconscious bias in hiring and promotions, and the influence of investors with similar backgrounds. Research shows that bro culture can undermine success, as gender-diverse companies are 25% more likely to be profitable, inclusive teams make better decisions 87% of the time, and one-third of job seekers avoid companies lacking diversity.
To combat bro culture, startups can take the following steps:
Embed diversity as a core value from the inception, reflected in the founders' values statement and prominently featured on the website.
Engage an HR contractor in the early stages and establish robust HR practices from the outset.
Ensure the founders and executive leadership team (ELT) communicates and enforces clear codes of conduct.
Promote mentorship and support for underrepresented groups.
Cultivate an inclusive decision-making process.
In my experience, startups that minimize bro culture and embrace diversity create a more positive and enjoyable work environment, leading to increased productivity and better morale.
By actively embracing diversity and reducing bro culture, startups can build more inclusive, innovative, and successful companies that attract and retain top talent from diverse backgrounds.
Thanks for sharing.
When we are at a point (hopefully) of hiring for our startup, I can look at someone's CV without knowing their gender and just their background, experiences, interests and perspective - this might lead to a more balanced team, perspectives and voices.
As an inverse in my last role as Director for Digital Innovation at KPMG US, I was one of about five men in a 120 person division of Events and Meeting professionals with few people of color. It was an odd feeling to be part of a small and separate group from the pack, even if an Ashkenazi male of European heritage. It is interesting that certain fields have concentrations of one gender and race versus another.