It starts with a community.
2017 Annual Report
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2017 was a year of reckoning for our nation. Although it was a difficult and often tumultuous year, it also forced people to look inward and ask the questions everyone needs to be asking themselves. What truly matters? What am I going to do to create the changes I want to see in the world?

Code2040 was no different. 2017 forced us to take time for deep self-reflection, and while our principles remain fundamentally unchanged, the way we approach and talk about equity and inclusion in tech has changed. It has led us to this question.

What would the future look like if we all had a hand in building it?

We’ve realized that we need your help to answer that question. If 2017 has taught us anything, it’s that one voice doesn’t speak for the community—the community speaks for itself. So, we’re building a community of change agents who are driving toward diversity, equity, and inclusion. This moment is about accessing the power of tech as it transforms lives and the economy. And we want you to be a part of it.

This is your opportunity to share your struggles, your successes, your advice—anything that you want to impart to this community. Show us how you’re #Building2040.

Six Years Strong

Although we spent this year reimagining how we can better serve our community, our goal remains the same: By 2040—the beginning of the decade when the majority of U.S. citizens will be people of color—Black and Latinx people will be fully represented in and leading the innovation economy, and they will have the economic and social capital needed to thrive and build generational wealth.

This bold goal is necessitated by the rate at which Black and Latinx people are currently excluded from the tech industry. Despite earning nearly 20% of computer science bachelor’s degrees, they make up only 5% of the technical workforce in top tech companies. The talent is there, but the opportunity isn’t. That’s why it is our mission to create pathways for Black and Latinx people in the innovation economy.

Here are some highlights of the strides we have made toward this future:

2012

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students

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companies

2017

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companies, students, volunteers, and more including:

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Students making up the largest class of Fellows

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Tech Trek Students

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Company partners

Meaningful Conversations

We spoke with industry leaders on topics that matter most to our mission: The power of representation, the Innovation Economy’s unique capacity to drive racial equity, and more.

Powerful Coverage

Our work and impact were featured in the following news outlets, reaching hundreds of millions of people.

Wide Support

We raised over $7.5 million from a wide range of supporters and innovators.

View more in the Donors section

#building2040

My experience with Code2040 has come full circle, starting with being part of the of the founding cohort of the Fellows Program in 2012, founding Wise Systems in 2014, and hiring another former Fellow in 2017. The program reinforced my commitment to diversity as a way to create a strong, resilient company and my understanding that building and maintaining diverse networks can create an industry and economy that better reflects society.

Chazz Sims, 2012 Fellow, Founder, Wise Systems

Letter from the Founders

Code2040 had a transformational year, one of deep reflection and change. As our community of over 6,000 individuals and companies stepped up to advance racial equity in tech, we focused on ways to empower and boost their work. We created new approaches to share what we, and our partners, have learned, so more companies can benefit from this knowledge. We amplified stories from Black and Latinx technologists, a necessary step in shifting the way our society views Black and Latinx talent. We created new pathways to connect and mobilize our community of change agents, ultimately demonstrating that our power as a collective has always been greater than the sum of its parts.

During this time of reflection, Code2040 evolved, but we maintained our same bold goal. Racial inequity in the tech sector is a systemic problem, and we understand that a systemic problem requires a systemic solution. Together with our 301 Fellows Program alumni, 100 company partners, and 6,000 community members, we are working to create that systemic solution. We’ve ignited a movement to ensure Black and Latinx individuals are fully represented in and leading the innovation economy.

Now, we look forward to a new chapter, one in which our community extends beyond our programs and acts as an ecosystem where members can stay connected and build lasting networks. And there is no one more equipped to lead this next phase of development than Code2040’s new CEO, Karla Monterroso. Through our continued work and Karla’s aptitude for mobilization, we will ensure our communities have the economic and social capital needed to thrive and build generational wealth.

We are grateful to you for leading us to this moment, and we are excited to continue this work together!

With love,
Laura and Tristan

Now's the Time

It’s tough to talk about the past year without acknowledging the political climate. Direct actions have been taken against our communities, from the rise in hate crimes to policies executed by top-tier political officials.

It may feel like we’ve lost ground, but last year sparked a sense of urgency in the community that we haven’t seen in years. And it reminded us all that time doesn’t guarantee progress—we have to work hard and push for every inch, together. It was a reminder that we need to rally as a community—not only for an inclusive industry but for an inclusive country.

With this is mind, we’ve had to take a hard look at how we’re hoping to achieve our mission at Code2040. While our goal has remained the same, we’re changing the way we talk about it: We’re mobilizing people across the industry to use the power of tech to fight for equity and realize economic justice. We sometimes surprise people when we talk about economic justice—few equate it with diversity in the tech industry. The conversation around diversity usually hedges around HR compliance and a business imperative that gives companies a competitive edge. Yes, HR compliance is a benefit and diversity can improve business goals, but that barely scratches the surface. We (and you!) can add so much more to the conversation.

Shaping Change

It was this call to unity that shaped our vision in 2017. In all our reflections, we realized that the tech industry’s failure to be inclusive—like all systemic problems—requires a systemic solution. And a systemic solution requires you.

Our hope is that this approach will create more opportunities for action and leadership among students, professionals, entrepreneurs, partners, and allies. The continued success of our Fellows Program and Tech Trek help us empower students and companies across the country. But we also want to build a community that lives beyond our programs, where members can stay connected online and in-person. Through this community—through you—we can share and build knowledge that will help us reach our bold goal.

#building2040

Through a diverse workforce you end up with better products and I was thrilled to partner with a program that brought us high-quality candidates and helped to address diversity and inclusion in high tech. Code2040 is giving people actionable things they can do to make Silicon Valley more accessible. Giving us direct actions we can take to open ourselves up to folks from diverse backgrounds. It’s a wonderful organization.

Paul Devine, VP of Engineering, TaskRabbit, Code2040 Company Partner since 2015

Embodying our Goals

It’s paramount that our organization reflects the change we want to see in the tech industry. We pride ourselves on diversity and inclusion here at Code2040.

We represent and accept all sexual orientations.

97% of our staff identify as people of color.

77% of our staff identify as female.

34.5%

Primarily Black, African-American

31%

Primarily Latinx, Hispanic

17%

Mixed Ethnicity

14%

Primarily Asian, Asian-American, Pacific Islander

3.5%

Primarily White, Caucasian

Programs

In 2017 we reimagined how our programs could reflect the changes we wanted to see in the industry. Our programs succeeded in helping individuals achieve their goals in tech, and we wanted to reach and engage more people in this work. We recentered our organization around this ecosystem of people eager to learn, connect, and create change.

Building Student Networks for Impact: Student Programs Department

The Student Programs Department demonstrates our focus on creating opportunities for students, giving them access to the Code2040 community, equipping them with the tools they need to advance their careers and create change in the industry, and connecting them to an ecosystem of change agents.

This department includes:

Fellows Program

A summer accelerator program connects Black and Latinx computer science students with companies in need of their talent. 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. In 2017, we welcomed our largest class of Fellows with 132 students participating in the program, and in 2018 we’re expanding the program by launching a cohort in New York City.

Key successes:

48% average increase in all Fellows LinkedIn networks.

35% increase in knowledge of work concepts.

9% increase in knowledge of programming languages.

18% increase in knowledge of programming languages for Fellows who identify as women.

97% of Fellows would recommend Code2040 to a friend or classmate.

Tech Trek Program

Tech Trek Program: Black and Latinx computer science students gather together in the Bay Area from across the United States for a week of community building, tech company tours, workshops, and networking. In 2017, 50 students participated and experienced increased confidence in their ability to thrive in tech. In 2018, the Tech Trek program will grow to serve two cohorts of students and introduce a new program location.

Key successes:

96% of students were more confident in their ability to graduate with a CS degree.

86% felt they were better equipped to handle issues of race and identity in the workplace.

96% felt they had a network to help them achieve their ambitions.

89% of students were optimistic about mentoring opportunities from Black and Latino technologists.

#building2040

Through Code2040, I was able to find a group of people that I have been longing to find my entire life. People who have been through so many similar struggles; whether it was the gay Latinx aspiring software engineer or the Black, woman product manager, Code2040 showed me that I am not alone in this world full of negativity. Code2040 showed me the true meaning of family. Code2040 showed me that together, we can achieve anything. The people I met during Tech Trek gave me the drive, compassion, and hope that I will make it. It was hands down the best week of my entire life, and I am so blessed to have had the opportunity to be apart of a big change. Looking into the future, I have no doubt in my mind someone on this trip will be the next Mark Zuckerberg, Bill Gates, Steve Jobs or even better. Big things are coming soon.

Yasmin Abdi, Tech Trek 2017, Software Engineer Intern, Snap Inc.

Growing Community and Deepening Support with Companies: Community Mobilization and Company Culture Transformation Departments.

To better serve our community, we restructured some of the ways we approach our mission. This includes introducing two new departments and evolving our entrepreneurship goals.

Community Mobilization Department

We recognize that many people in our community and in the sector at large are passionate about creating change, and we want to ensure they are able to take action wherever they are. To that end, we created the Community Mobilization Department. It is charged with developing high-impact online and offline experiences that will inspire and mobilize Black and Latinx technologists and their allies early in their careers. This includes planning and executing the Summit: Code2040’s two-day annual conference in San Francisco. The Summit brings together a growing community of changemakers to learn, share and network, with a focus on empowering leaders to drive racial equity in the innovation economy and amplify the voices and experiences of Black and Latinx folks.

Key successes of the 2017 Summit:

65% increase in attendance from 2016

82% increase in Summit-only ticket sale revenue

In 2018, the CMD will produce a new publication for young Black and Latinx technologists, launch two new event series—Salons and PopUps—for conversation and live experimentation, and oversee our signature two-day community event.

Company Culture Transformation Department

From assessments to executive coaching, the Company Culture Transformation Department supports companies in various stages of their equity journey. Our four foundational trainings—The Business Case for Diversity, Navigating Differences, Building Your Diversity Toolkit, and Overcoming Obstacles—equip companies with the knowledge and tools they need to take powerful steps towards a more inclusive and equitable culture.

To jumpstart change, CCT is piloting these foundational trainings into their management training plans. In doing so, these company partners will receive monthly trainings with new managers, maintain multiple touch-points throughout their development and learning journey, and receive a variety of data that will help us and our facilitation. This pilot, and future ones to come, will generate Insights, community, and the foundation for long-term change at companies at the forefront of the innovation economy.

Reimaging Entrepreneurship

With these changes, we’re tweaking our entrepreneurship goals, which led to the end of the Residency Program in 2017. Sunsetting the program was a tough decision, but we hope to use the knowledge gained to drive change in other ways. Instead of relying on a single entrepreneurial program, we’re implementing our learnings and promoting entrepreneurship in our other ways. Additionally, the successes of our Entrepreneurs-In-Residence and the hubs that hosted them demonstrate the brilliance and impact of our Black and Latinx entrepreneurial community.

Capital raised

Since founding their companies, EIRs have raised roughly $1.6 million for their businesses, with two EIRs raising $500,000 or more. Members of the 2017 EIR raised $237,380 as of September 2017, about 15% of all funds raised by Code2040 EIRs.

Users/Customers

Three EIRs with applications businesses reported gaining users in 2017, with a total gain of 454 users.

Employees

EIRs have employed 33 people at their companies since founding, with 28 of those 33 still working at EIR companies.

Financials

Assets
Checking - First Republic 664,247.83
Money Market - First Republic Bank 2,865,476.41
Petty Cash 200.00
Accounts Receivable 760,000.00
Allowance of Doubtful Accounts (55,509.57)
Grants/Contributions Receivable 2,576,249.80
Miscellaneous Receivable 36,368.66
Discount on Receivables (44,089.00)
Security Deposits 167,254.88
Prepaid Expenses 97,100.96
Furniture and Equipment 200,018.36
Accum Depr- Furn & Equip (48,696.04)
Software 305,481.50
Accumulated Depreciation - Software (97,133.51)
Leasehold Improvments 135,567.11
Accum Amortization-Leasehold Improvements (34,198.43)
Assets 7,528,338.96
Liabilities & Net Assets
Liabilities
Credit Card Payable 13,179.07
Payroll Suspense 1,521.74
Vacation Payable 117,860.53
Payroll Taxes Payable (498.17)
Workers Comp Payable 6,612.20
Employee benefits payable 13,065.07
Miscellaneous Payable 2,108.00
Sales Tax Payable 1.61
Deferred Revenue 238,500.00
Liabilities 392,350.05
Net Assets
Unrestricted 3,842,433.70
Temporarily Restricted 3,293,555.21
Net Assets 7,135,988.91
Liabilities & Net Assets 7,528,338.96
Unrestricted Temporarily Restricted Total
Revenue
Grants & Contribution
Grant Revenue 1,891,603.29 3,160,000.00 5,051,603.29
Individual Contributions 522,311.10 0.00 522,311.10
Grants & Contribution 2,413,914.39 3,160,000.00 5,573,914.39
Special Events (net)
Special Events- Sponsorships 1,500.00 0.00 1,500.00
Special Events - Tickets Sales 8,539.14 0.00 8,539.14
Special Events - Other Rev 3,662.00 0.00 3,662.00
Special Events - Expenses (24,384.94) 0.00 (24,384.94)
Special Events (net) (10,683.80) 0.00 (10,683.80)
Earned Income & Interest
Interest and Investment Income 40,366.65 (82,503.00) (42,136.35)
Miscellaneous Income 8,473.50 0.00 8,473.50
Earned Income & Interest 48,840.15 (82,503.00) (33,662.85)
Program Service Fees 1,408,500.00 0.00 1,408,500.00
Sponsorship Revenue 430,000.00 (40,000.00) 390,000.00
In-Kind Donations 189,300.00 0.00 189,300.00
Revenue Released from Restriction 3,019,355.85 (3,019,355.85) 0.00
Revenue 7,499,226.59 18,141.15 7,517,367.74
Expenses
Personnel Expenses
Salary and Wages 3,004,030.01 0.00 3,004,030.01
Vacation Expense 197,008.32 0.00 197,008.32
Payroll Taxes 229,880.09 0.00 229,880.09
Workers Comp Insurance 13,322.30 0.00 13,322.30
Health Benefits 135,991.11 0.00 135,991.11
Payroll Service Fees 14,976.29 0.00 14,976.29
Recruitment 216,877.62 0.00 216,877.62
Staff Training 54,345.54 0.00 54,345.54
Staff Appreciation 12,816.09 0.00 12,816.09
Temporary Staffing 54,562.46 0.00 54,562.46
Personnel Expenses 3,933,809.83 0.00 3,933,809.83
Contract Services
Contract/Professional Services 385,879.61 0.00 385,879.61
Legal Fees 6,145.00 0.00 6,145.00
Audit Fees 30,226.15 0.00 30,226.15
Media/ Design Fee 1,922.00 0.00 1,922.00
Contract Services 424,172.76 0.00 424,172.76
Program Supplies, Stipends
Office Supplies 15,980.34 0.00 15,980.34
Program Supplies 53,202.82 0.00 53,202.82
Printing and Repro 3,645.99 0.00 3,645.99
Postage 2,944.37 0.00 2,944.37
Publications and Subscriptions 5,700.92 0.00 5,700.92
Dues and Membership 27,186.08 0.00 27,186.08
Stipends 599,783.38 0.00 599,783.38
Program Supplies, Stipends 708,443.90 0.00 708,443.90
Rent, Utilities, Equipments
Rent 418,008.26 0.00 418,008.26
Utilities 18,037.43 0.00 18,037.43
Custodian and Cleaning 5,310.08 0.00 5,310.08
Telecommunications 10,862.74 0.00 10,862.74
Insurance 13,875.54 0.00 13,875.54
Equipment and Furniture<$5000 3,819.13 0.00 3,819.13
Equipment Lease 7,248.05 0.00 7,248.05
Computer Supplies and Software 72,669.89 0.00 72,669.89
Depreciation Expense 106,785.07 0.00 106,785.07
Amortization Expense 27,266.82 0.00 27,266.82
Bank Processing Fees 2,850.24 0.00 2,850.24
Interest and Finance Charges 38.00 0.00 38.00
License and Permits 395.00 0.00 395.00
Property Tax 1,442.57 0.00 1,442.57
Miscellaneous Expense 158.42 0.00 158.42
Rent, Utilities, Equipments 688,767.24 0.00 688,767.24
Travel & Conference
Conferences and Meetings 41,248.68 0.00 41,248.68
Transportation 181,200.49 0.00 181,200.49
Food and Meals 116,146.99 0.00 116,146.99
Lodging 169,317.47 0.00 169,317.47
Travel & Conference 507,913.63 0.00 507,913.63
Misc Expense
Bad Debt Expense 40,523.73 0.00 40,523.73
Misc Expense 40,523.73 0.00 40,523.73
Expenses 6,303,631.09 0.00 6,303,631.09
Change in Net Assets 1,195,595.50 18,141.15 1,213,736.65
Net Assets at Beginning of Period 2,026,632.49 3,275,414.06 5,302,046.55
Net Assets at End of Period 3,222,227.99 3,293,555.21 6,515,783.20
#building2040

Over the last few years, I’ve had the pleasure of being a mentor, panelist, and volunteer with Code2040. In all of these roles, I’ve really enjoyed making meaningful connections with the fellows, whether it’s guiding them through interview prep or sharing my thoughts on how to grow into an effective engineer. The one thing that keeps bringing me back over the years is the strong community that Code2040 fosters. As a woman of color in a technical role, it is both empowering and humbling to play a role in shaping the paths of fellows.

Pamela Martinez, Volunteer, Software Engineer, Seesaw

Donors and partners

A big thanks to everyone who makes our work possible

Individuals
  • Aaron Levie
  • Anonymous
  • Attendees of React Conf 2017
  • Ben and Felicia Horowitz
  • Dwight A. Churchill
  • Jeremiah and Jacquie Robison
  • Laszlo Bock
  • Lin-Manuel Miranda and Vanessa Nadal
  • Megan Quinn and M.G. Siegler
  • Nelson Minar
  • Nicole Abreu Shepard and Luke Shepard
  • Peter and Kristan Norvig
  • Peter and Susan Colby
  • The Hyett Family Fund
Foundations
  • Anonymous
  • BNY Mellon
  • Chan Zuckerberg Initiative
  • Ford Motor Company Fund
  • John S. and James L. Knight Foundation
  • Lookout Foundation
  • The Google Foundation of Tides Foundation
  • The Harmon and Eugene Leiman Foundation
Transformational Donors
  • Adam Pisoni
  • Alex MacGillivray
  • Brin-Wojcicki Foundation
  • Chris and Crystal Sacca
  • John S. and James L. Knight Foundation
  • Royal Bank of Canada
  • Sara and Evan Williams Foundation
Corporations
  • 500 Startups
  • ActBlue
  • Capital One
  • Deloitte Consulting LLP
  • Eventbrite
  • Galvanize
  • GitHub
  • Google
  • Google for Entrepreneurs
  • HelloOffice, Inc.
  • Intel Corporation
  • John Deere
  • Lion Re:Sources
  • Microsoft
  • New Relic
  • Oracle
  • Revolution Ventures
  • Slack
  • Survey Monkey
  • Tencue Productions
Company Partners
  • Affirm, Inc.
  • Airbnb
  • Atlassian
  • Autodesk, Inc
  • Box
  • Carbon Five
  • Circle CI
  • Clover Health
  • Coursera
  • Dropbox
  • eBay, Inc.
  • Foursquare
  • GitHub
  • Handshake
  • Intel Corporation
  • Intuit
  • Juntos Finanzas
  • Lovable Tech (formerly Mustwin)
  • Lyft
  • Macy’s
  • Medium
  • NerdWallet
  • Nextdoor
  • Omada Health
  • Panafold
  • Pandora
  • Pocket Gems
  • Presence
  • PricewaterhouseCoopers (PwC)
  • Redfin
  • Robinhood
  • Salesforce.com
  • Schoolzilla
  • Slack
  • Stitch Fix
  • Stripe
  • TaskRabbit
  • Tilt
  • Twitter
  • Workday
  • Yahoo!
  • Zendesk
  • Zillow Group
  • Zynga
#building2040

I’ve been a volunteer mentor with Code2040 for a few years now, and I appreciate the opportunity to share my experiences as a person of color in STEM with the Fellows as well as learn from them as to what’s going on in the industry, student life, etc. I also value the relationship that I have with Code2040. I’m bootstrapping my own startup, ConciergeBot, and I got my start through a connection I made with the Startup@Berkeley group whom I met at the Code2040 Summit last summer. Through that connection, I joined their quarterly seminar and was subsequently accepted into a startup incubator! Code2040 not only allows me to give back to the community, but has given to me as well.

James Silva, Volunteer, Founder/CEO, ConciergeBot

Join us in 2018

The changes we made in 2017 will drive us closer to our 2020 goal—40,000 Black and Latinx technologists and their allies working throughout the industry for equity—and our bold goal for 2040.

The work we continue to do—and its level of success—depends on people like you.

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