Mike Brock’s piece on Sequoia Capital last week laid out a pretty damning case study: a well-respected COO complains about a partner’s Islamophobic posts, senior leadership invokes “institutional neutrality” and declines to act, she resigns, he stays because he made them billions on SpaceX. Brock correctly calls this out as a choice, not neutrality—a calculation about whose value to the firm matters more.

The thing that struck me about Brock’s piece is that it highlights how there’s a broader pattern here: institutional cowardice from organizations that spout high-minded ideals as a shield to explain their refusal to make a clear decision, while ignoring that doing so is a very real choice with very real consequences.

That’s worth highlighting, because we keep seeing it play out in nearly identical ways. Whether it’s a venture capital firm or a social media platform, the playbook is the same: invoke “neutrality” or “free speech” as a shield, refuse to take a clear stance on bigoted behavior, and then act shocked when the people being targeted decide they don’t want to stick around.

This is the Nazi bar problem, and it keeps happening because people in positions of power either don’t understand it or don’t want to.

We head off into an excursion about paid blogging platforms …

Sequoia took the cowardly way out. It made a choice, but it wouldn’t own it, just like Substack refuses to own its pro-Nazi position. It pretends it doesn’t by saying “we’re staying neutral.” But their version of “staying neutral” and “supporting free speech” is really “bigotry and hatred are welcome” and then, what follows naturally is “the targets of bigotry and hatred must leave.”

And it’s the exact same choice Substack made. When [CEO Chris] Best refused to answer Nilay’s questions, he was saying: we value the revenue from writers who publish bigoted content more than we value the writers and readers who don’t want to be associated with that content.

Just as Balbale felt the need to leave Sequoia, a ton of Substack’s top writers left that platform. Joe Posnanski, Casey Newton, Marisa Kabas, Ryan Broderick, Molly White, Ken White, Audrey Watters, Mark DeLong, and many others have left Substack, with many of them pointing out that Substack’s stance on Nazis makes them feel unwelcome (for what it’s worth, many are also noting they make more money on other platforms).

Hmm. More money, fewer Nazis seems a decent tradeoff.

How “Neutrality” And “Free Speech” Become Excuses For Driving Out The People You Claim To Value

Mike Brock's piece on Sequoia Capital last week laid out a pretty damning case study: a well-respected COO complains about a partner's Islamophobic posts, senior leadership invokes "institutional neutrality" and declines to act, she resigns, he stays because he made them billions on SpaceX. Brock correctly calls this out as a choice, not neutrality—a calculation…

Techdirt (www.techdirt.com)

If you choose not to decide, you still have made a choice.

Rush