Some investors are thinking twice about backing VC firms with female partners

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Former Kleiner partner John Denniston, partner John Doerr, and former partner Ellen Pao.

"Over the past couple of months, I have heard three male limited partners say (on background, natch) that the case has caused them to view gender-mixed firms as more of a negative than a positive because of extra litigation risk (none said they wouldn't invest, just that it was a data point that they consider)," Primack said in an email newsletter on Wednesday.

Limited partners invest in VC firms, who then invest the money in startups.

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It seems some of the partners Primack talked to are wary about backing firms with female partners because any possible conflict - like a discrimination lawsuit - could impact their bottom line.

Primack said these partners' hesitance was a "distressing development" but also suggested that opposition to hiring female partners could be a minority opinion, not the industry consensus.

To be sure, the three people Primack talked to don't represent all investors. But it's a good example of how sexism persists and can be perpetuated by wealthy people with influence.