2016
Annual
Report

Shaping
A More
Inclusive
Future
Through
Tech
Scroll Down button
Five years into pursuing our bold goal, we’re just getting started. But we’re eager to celebrate how far we’ve come.

We’re excited to share our successes while tackling the work ahead. With a hardworking team devoted to changing the status quo and support from a community of participants, donors, and companies, Code2040 has grown exponentially over the last year.

0
Members

We have more than 5,000 members in our community, and all our programs have expanded.

0
Applicants

Our Fellows Program alone had 880 applicants in 2016, and we expect more than 1,000 in 2017.

Our impact over the past year makes us confident that Code2040's programs, strategies, and messaging are working together to move us closer to our 2040 goal.

Letter from the Founders

Reflecting on 2016, we are deeply grateful for our community’s dedication to creating access and opportunities for Black and Latinx talent. Over the last year, our community has grown to include more than 5,000 students, donors, entrepreneurs, volunteers, company partners, and change-makers, whose passion and progress serve as powerful reminders as to why we started Code2040 back in 2012.

We started Code2040 as a pilot with just five students. Over the past five years, our learnings have led to the development and growth of three distinct programs, each serving different facets of our community: the Fellows Program, Technical Applicant Prep (TAP), and the Code2040 Residency. Working closely with hundreds of students, entrepreneurs, and companies has given us a front row seat to the increased focus on the hiring, retention, funding, and support of tech talent of color across the industry. We have seen our brilliant alumni leverage their passion for inclusion to pioneer changes at their companies. We’ve seen companies emerge as exemplars for what it means to embrace a growth mindset and a strong commitment to diversity, equity, and inclusion. And we’ve seen Black and Latinx entrepreneurs across the U.S. launch and grow their businesses, supporting each other and their communities along the way.

As we look toward the future, technology will drive an increasingly significant portion of our economy as a whole. By creating access and opportunities for Blacks and Latinxs to thrive in technology, we are ensuring Blacks and Latinxs can thrive in our economy. These are the conditions necessary to create racial equity in America. For that reason, we are committed to ensuring Black and Latinx individuals are recognized and valued as powerful innovators and are the leading benefactors to and beneficiaries of the innovation economy.

Thanks to your ongoing support, we are able to bring this vision to a reality!

Our Bold Goal

We believe that Blacks and Latinxs are powerful innovators. Our bold goal is, by 2040, to be recognized and valued as leading benefactors to and beneficiaries of the innovation economy, with the economic and social capital we need to thrive and build generational wealth.

We believe seeking the contributions of Black and Latinx communities and including us in entrepreneurial and innovative fields strengthens the nation as a whole. As a result, we envision a nation that is more equitable, innovative, and prosperous by 2040.

Our Vision

In 2040, Blacks and Latinxs will be recognized and valued as powerful architects of technological, economic, and societal progress. We will be visible and prolific in the innovation economy. Our unique contributions will be sought after, and we will have the power to pursue whatever career paths and opportunities we choose. We will see our success as possible and believable and know that–without a doubt–we are capable. In 2040, Blacks and Latinxs will succeed by being who we are, not by leaving parts of our identities behind.

The
Challenge

The
Year
2040

will mark the beginning of the decade when people of color are the majority in the United States, with Blacks and Latinxs making up over 40% of the population.

Even so, our communities’ economic indicators remain poor, without much sign of improving. If we’re going to be a plurality, we must figure out how to empower our communities of color.

Blacks and Latinxs are currently excluded from the innovation economy at alarming rates. Despite computer science degrees being awarded to our communities, hiring practices do not reflect the talent pool. The numbers just don't add up.

The talent has been here for years.
  • 18%
    of computer science Bachelor’s degrees are
    earned by Black and Latinx students.
  • 5%
    of technical jobs are held
    by Blacks and Latinxs.
  • 1%
    of venture-backed tech companies have
    a Black or Latinx founder.

The current lack of support for Black and Latinx talent is contributing to growing economic inequality. Yet the innovation economy is capable of large-scale pivoting and primed for change.

Salary Discrepancies:
The median tech worker salary ($105,690) is more than the median household income of a Black ($36,898) and a Latinx ($45,148) family combined.
The median white family’s net worth ($111,146) is 15x higher than that of a Black family ($7,113) and a Latinx family ($8,348).

The tech sector’s high salaries and low unemployment provide an opportunity for Black and Latinx communities to build generational wealth. As our numbers grow, we will make stronger contributions to the innovation economy, allowing for a degree of self-determination previously unknown in communities of color.

Black and Latinx communities are some of the most powerful cultural influencers in America. But without access to the digital and technological tools for growing influence, our communities’ contributions are often appropriated or erased—further diminishing our economic, social, and political power.

Our
Solution

Our programs connect top Black and Latinx tech talent with companies, funders, and fellow technologists committed to diversity and inclusion. By creating a supportive and inclusive community, Black and Latinx professionals can help each other launch and advance careers in the innovation economy.

Through the Fellows Program, Technical Applicant Prep (TAP) program, and Residency program, we support Black and Latinx professionals in various stages of their careers to mobilize change in the tech industry.

Our Team

We’re dedicated to advocating for diversity in the innovation economy through our own internal team, as well.

68%

of our staff identify as female.

We represent and accept all sexual orientations.

of our staff identify as people of color. 93%
31%

Primarily Latinx, Hispanic

27.5%

Primarily Black, African-American

21%

Mixed Ethnicity

14%

Primarily Asian,
Asian-American,
Pacific Islander

7%

Primarily White, Caucasian

Financials

December 31, 2016 ASSETS LIABILITIES Cash and cash equivalents $3,375,501 Grants receivable $893,650 Sponsorships receivable $152,000 Other receivables $1,606 Prepaid expenses $11,659 Total current assets $4,434,416 Grants receivable beyond 1 year $1,882,646 Security deposits $81,622 Properties & equipments $65,380 Software $157,533 Total assets $6,621,597 Current liabilities Accounts payable and accrued expenses $143,053 Accrued vacation liability $88,615 Total current liabilities and total liabilities $142,053 Net assets Unrestricted $2,046,589 Temporarily restricted $4,431,956 Total net assets $6,478,545 Total liabilities and net assets $6,621,597 Assets as of 12/31/16
December 31, 2016 Support andRevenue Unrestricted Total TemporarilyRestricted Grants $132,500 $557,000 - - - - - - -$2,326,808 -$1,637,308 Contributions In-kind contributions Fundraising events income Fundraising events expenses Fundraising events net Other income (losses) Total support and revenue Net assets released from restrictions: Sponsorships Expenses Personnel expenses Contract services Program supplies, stipends Rent, utilities, equipments Travel & conference Change in net assets Net assets at the beginning of the year Net assets at theend of the year Total expenses $1,366,750 $1,458,969 $262,730 $200 $94,239 -$3,240 $90,997 $22,077 - $3,231,565 $1,234,250 $901,989 $262,730 $200 $94,239 $2,224,859 $361,787 $406,462 $258,647 $455,099 $3,708,100 $1,160,773 $895,815 $2,046,589 - - - - - - -$1,637,308 $6,069,264 $4,431,956 $2,224,859 $361,787 $406,462 $258,647 $455,099 $3,708,100 -$476,535 $6,965,079 $6,478,545 -$3,240 $90,997 $22,077 $2,326,808 $4,868,873 Purpose accomplished ortime restriction met

Donors


Our donors drove our success in 2016, enabling us to expand our programs and reach more people than ever before. We are fortunate enough to be surrounded by people who believe in our work. To all of our donors: Thank you.

Corporations
  • Intel
  • ESPN
  • Atlassian
  • Andreessen Horowitz
  • Royal Bank of Canada
  • Box
  • Walmart
  • Target
  • Visa
  • BNY Mellon
  • Always Be Learning, Inc.
  • Sequoia Capital
  • Twitter
  • Wieden+Kennedy
  • Paradigm
  • Yahoo!
  • Airbnb
  • Intuit
  • Google
  • Appirio
  • First Republic Bank
  • John Deere
  • Mapbox
  • New Relic
  • Oracle
  • Slack Technologies
  • The Scenary
  • Zendesk
  • Pluralsight
  • Planet Labs
  • ActBlue
  • Lyft
  • Braintree
  • if(we)
  • Jane Street
  • Lever
  • Pinterest
  • Tilt
  • Electronic Arts, Inc.
  • Salesforce
  • Fenwick & West LLP
  • GitHub
  • Next Play Capital
  • One Kings Lane
  • Tuft & Needle
  • Brigade Media
Individuals ($500+)
  • Sara and Evan Williams
  • Ben and Felicia Horowitz
  • Andrew Bosworth
  • Sarah Peter
  • Justin Bedecarre
  • Jeff Clavier
  • Tristan Walker
  • Susan Colby
  • Jeremy Wood
  • Kathryn Burns
  • Charlie Stigler
  • Aston Motes
  • Christina Halpern
  • John Quint
  • Heather Arthur
  • Erin Perzov
  • Nathan Parkhill
  • Fiona Tay
  • Scott Clasen
  • Donn Burdick
  • Rebecca Stone
  • Chuck Horton
  • Christopher K. Davis
  • William Finlayson
  • Hunter Walk
  • Tyler Phelps
  • Gerard Sheridan
  • Beth Andersen
  • Kathryn Schox
  • Sean Waugh
  • Thomas Guthrie
  • Corey Hobbs
  • Shane Russell
  • Jacinta Stark
  • Matt and Vanessa Ginzton
Foundations
  • Knight Foundation
  • Google for Entrepreneurs
  • Anonymous
  • New Profit, Inc.
  • Wellspring Advisors LLC
  • CME Group Foundation
  • Elfenworks Foundation
  • Lookout Foundation
  • Ford Motor Company Fund
  • Benevity Community Impact Fund
  • Craigslist, Inc.
  • Yelp Foundation
  • Linux Foundation

Our Vision
For The
Future

The pathways to success that we created in 2016 are only the beginning. What’s next?

We will ensure that Blacks and Latinxs achieve full representation in the innovation economy as it continues to expand over the next three decades.

Current and CODE2040’s Projected Demographics of the Innovation Economy
% population that is Black or Latinx % tech workforce that is Black or Latinx % increase in number of IE jobs 0 20 40 60 2015 2020 2025 2030 2035 2040 Growth

How will we achieve this? Our approach is threefold, enabling us to exponentially expand our growth and drive our mission home. Whether Black and Latinx talent benefits directly from our programs or indirectly through mentorship with our alumni, or our company partners change their cultures directly through our trainings or indirectly through intrapreneurs, we strive to make great change throughout our community.

Current and Projected Impact of
Code2040 by Approach
Reached via direct service Reached via scaled service Reached via multiplier effect 1,170 1,755 2,925 8,612 12,198 21,530 15,847 39,617 103,005 2015 2020 2025
Fellows Program

Our Fellows Program connects high-performing Black and Latinx software engineering students with internships at top tech companies. Through its 10-week curriculum, students receive 1:1 pairing with a technical mentor, leadership training, career coaching, and network development.

In addition to preparing our Fellows for careers in tech, we work with companies to ensure their hiring processes and cultures are equitable and inclusive. All company partners receive training on a range of topics such as The Business Case for Diversity and How to Have Tough Conversations about Race. The feedback and impact of these trainings was so positive, that we are launching a standalone training program in 2017.

Through its work with students and companies, the Fellows program serves as a learning lab, enabling us to identify practices that will change structures and impact the sector at large.

Key Successes
160+

Fellows interned at top tech companies such as GitHub and Pandora.

45%

average increase in all Fellows LinkedIn networks.

92%

of Fellows would recommend Code2040 to other students.

22%

drop in imposter syndrome across the cohort.

2x

Fellows receive a return offer from their host companies at a rate twice as high as the industry average.

82%

of companies would recommend Code2040 to other companies.

1+3

Fellows learn one more technical language and three more technical processes, on average, upon finishing the program.

The Fellows Program more than doubled in 2016 and is expected to grow by more than 60% in 2017.
0 20 40 60 80 100 120 2012 2013 2014 2015 2016 2017 No. of Fellows
Connecting Talent Across the Country
1 North Carolina A&T State University 1 HowardUniversity 1 Universityof Michigan – Dearborn 1 Universityof Texas –Dallas 1 MonroeCollege 1 EmoryUniversity 1 Dartmouth College 1 Baruch College, The City Universityof New York 1 AmericanUniversity 1 OberlinCollege 1 BrownUniversity 1 Nova Southeastern University 1 Louisiana StateUniversity 1 MorehouseCollege 1 Arizona StateUniversity 1 San JoseStateUniversity 1 SpelmanCollege 1 University of Rochester 1 Universityof Miami 1 RutgersUniversity – New Brunswick 1 VanderbiltUniversity 1 University ofCalifornia –Los Angeles 1 Universityof SouthernCalifornia 1 PomonaCollege 1 New YorkInstitute ofTechnology 1 University of Notre Dame 1 University of Pittsburgh 1 Universityof Michigan –Dearborn 1 TuftsUniversity 1 Universityof Texas – Austin 2 New YorkUniversity 2 University ofMaryland –Baltimore County 2 DePaulUniversity 2 CaliforniaState University,Long Beach 2 BarnardCollege ofColumbiaUniversity 2 State Universityof New York – Oswego 2 PrincetonUniversity 2 University ofNorth Carolina – Charlotte 3 Universityof Illinois – Urbana-Champaign 3 Texas A&M University 5 MassachusettsInstitute ofTechnology 5 University ofCalifornia –San Dieago 5 ColumbiaUniversity 6 University ofCalifornia – Berkeley 12 StanfordUniversity
7 Pandora 6 Slack 9 Intuit 1 Schoolzilla 1 Watsi 1 MustWin 1 Earnest 1 Brigade 1 Presence 1 Box 1 JuntosFinanzas 1 Code forAmerica 1 Panafold 1 CircleCI 1 CarbonFive 1 RainforestQA 1 BNY Mellon 9 Apple 16 Intel 2 Macys.com 3 Foursquare 3 Foursquare 3 Medium 5 Medium 5 PwC 2 NerdWallet 2 Lyft 2 Stitch Fix 2 GitHub 2 LinkedIn 2 CloverHealth
Personal Stories
TECHNICAL APPLICANT PREP
(TAP) PROGRAM

TAP connects students and young professionals with the resources and knowledge they need to land internships and jobs in tech companies across the country. Focusing on Northern California, Washington, D.C., New York City, and Chicago, we bridge computer science education with software engineering careers by addressing the top four reasons students drop out of the computer science major:

Lack of industry exposure

Social isolation

Lack of mentorship

Lack of tech experience

By tackling these barriers and increasing persistence rates, we could double the number of Black and Latinx CS graduates to nearly 18,000 per year.

Program Highlights
Tech Trek

A week-long alternative to spring break, where 50 Black and Latinx computer science majors from around the country head to the Bay Area for eight days of tech company visits, workshops, panels, and networking.

Project Athena

Launched in 2016 as a prototype community engagement platform, Project Athena was designed to host Code2040’s first online community. It’s a place where our community can network, learn, teach each other, and experience a sense of belonging. Our hope is to transition workshops into web-accessible formats to expand the program’s reach.

Key Successes

In 2016, the TAP Program had:

After participating in Tech Trek, there was a:

4,000+

Black and Latinx students and early career professionals in the network.

62%

increase in students’ belief that they have opportunities to learn about a future career in tech.

67%

increase in students’ belief that they have a group of peers in CS with whom they can share their struggles.

CODE2040 RESIDENCY

Powered by Google for Entrepreneurs, the Code2040 Residency program connects Black and Latinx entrepreneurs with the resources to take their companies to the next level. Our Entrepreneurs-in-Residence (EIR) spend a year launching their companies, focusing on sustainability, and remaining connected to their local communities. We’re not looking to create unicorns—one will only be seen as an anomaly—we’re looking to permanently change the narrative surrounding Black and Latinx founders.

In addition to working with individual entrepreneurs, we’re reshaping the entrepreneurial ecosystem by partnering with local co-working spaces, which we see as hubs of the innovation economy. Through training, mentoring, and diversity and inclusion consultation, we’re having a broad impact for all Black and Latinx tech founders in those communities.

Key Successes

In total, our 2016 EIR cohort has:

$500K+

Revenue generated

28

Contracts signed

33

Jobs created

$600K+

Funding raised

Developed numerous pivotal relationships as a result of the program

Code2040 partners with co-working spaces across the country, spanning eight cities:
Capital FactoryAustin, TX GalvanizeSan Francisco, CA AmericanUndergroundDurham, NC Nashville Entrepreneur CenterNashville, TN TechSquare Labs(Coming 2017)Atlanta, GA COCOMinneapolis, MN 1871Chicago, IL Grand CircusDetroit, MI
Personal Stories