When it comes to the technology sector, women are repeatedly underrepresented within the industry. In 2017, things came to a head when workplace diversity, pay gap, and sexual harassment became the talk of the town in Silicon Valley. 2018 seems to be similar as more and more women are speaking about unjust practices in tech and society at large. To coincide with this movement, a recent Crunchbase (an online database connecting startups with funding opportunities) study of female founders discovered that, since 2012, investing among female led businesses has remained stagnant.
From 2009 to 2012, the percent of venture-funded companies with women founders increased by nearly 8 percent. However, the percentage of women-founded venture-backed companies globally has plateaued at approximately 17 percent since 2012. And as we come to the end of 2017, six years on, that percent has not shifted.
When broken down by types of venture funding, Crunchbase revealed that, since 2012, between 4% and 5% of all seed funding has went to female only founded startups ($277 million). Female and male co-founded teams made up between 11% and 13%. In venture, female only founded startups received about 3% since 2012 (which came to $3.8 billion in 2017). Female and male co-founded teams has consistently risen over the past few years, coming in at around 10% in 2017.
The total amount women received is substantially lower than male founded startups as well. Females teams on average earn “$82 for every $100 a male-founded team raises. For early-stage venture, women fared worse with an average $77 for every $100 a male-founded team raised since 2010.”
In terms of women in venture who are on the lending side of the industry, the numbers are continually dismal as “the number of female partners at the top one hundred venture firms went up by one percent, over the last eighteen months, from seven to eight percent. At best, this increase in women VCs is glacial progress. This represented 64 female partners out of 752 partners at the top 100 firms.”
While tech looks to figure out how to improve on its industry for gender improvement, venture capital is much further behind and does not seem to be taking steps in the correct direction. More female venture capitalists are needed to improvement this network, but for now, expect another stagnant year or years.