In 2017, only 17% of startups have a female founder


the share of startups which have at least one feminine founder used to be flat within the first quarter of 2017.

Crunchbase’s inaugural study on feminine founder representation of U.S.-based corporations was once revealed in could 2015. because the dialogue on the dearth of women in engineering groups gathered %, we concluded that Crunchbase was once uniquely positioned to address the difficulty of girls being represented in tech in relation to founders. because the open information set for the startup neighborhood, we brought gender to Crunchbase in March 2015 to further the research on leadership, founders and gender.

Two years on, and with the growth of the learn about to the global ecosystem, we revisit the same questions: What p.c of corporations have at least one female founder? Have these numbers shifted considering 2009? How do feminine founder groups fare when raising seed, early and late-stage challenge bucks?

five years, no percentage increase

For Crunchbase’s continuing find out about of feminine founders, 43,008 international firms with founders had an initial funding between 2009 to 2017. of these global companies, 6,791 (15.eight %) have at least one female founder. For this replace, we’re basically reviewing year-over-yr tendencies, as knowledge continues to be delivered to Crunchbase for 2016.

From 2009 to 2012, the p.c of project-funded firms with ladies founders elevated via nearly eight %; however, the share of ladies-based undertaking-backed corporations has plateaued at approximately 17 % on the grounds that 2012. And as we have a look at Q1 2017 data, that p.c doesn’t appear to have modified. for many who are keeping observe, that’s just about 5 years and not using a percentage growth in ladies-founded venture-backed startups:

absolutely the selection of corporations (along with the full selection of startups) with a feminine founder grew more than fivefold, from 176 in 2009 to 932 in 2016. This 2016 consequence will grow as extra girls-based startups with an initial funding are brought to Crunchbase over the next yr.

Of the 932 corporations, one-1/3 represent female-simplest founder teams. an additional third are created from two-individual feminine-male founding groups. the ultimate 0.33 are founders teams of three or extra contributors. In abstract, two-thirds of ladies-based firms are led only by ladies or are co-founded with one male founder.

for companies with an initial carry in 2016, female-based firms are weighted toward schooling (32 percent), e-commerce (31 percent), healthcare (21 percent) and media and entertainment (21 %) startups.

feminine-based corporations carry just eight p.c of late-stage rounds, 7 p.c of late-stage dollars

relating to fundraising, how do ladies-founded groups fare? At each innovative funding stage, female-founded companies are elevating lower percents of overall funding.

In 2016, firms with at the least one female founder raised 19 percent of all seed rounds, 14 % of early-stage undertaking and eight % of late-stage mission rounds.

for a similar yr, female-based corporations raised 17 p.c of seed dollars, thirteen % of early-stage greenbacks and 7 p.c of late-stage dollars.

Investor corporations challenging the status quo

Many companies have been formed to handle challenges that female founder and underrepresented minorities face. Angel networks like Astia Angels, Pipeline Angels, Broadway Angels and Golden Seeds center of attention on female-led firms together with training ladies in investing. BBG Ventures, MergeLane, the female Founders Fund, Rivet Ventures, Halogen Ventures, Scale traders, Fierce Capital and The Perkins fund are all early-stage money considering feminine-founded corporations. SheWorx, The Vinetta challenge, Watermark and others provide a forum for feminine founders and leadership. chosen here’s a growing checklist of investor firms listed in Crunchbase geared toward investing in female founders.

Susan Lyne, a co-founding father of BBG Ventures, confirms that “the largest difficulty shouldn’t be the number of women starting companies, but the get admission to to capital as you progress up the food chain.” As proven by the charts above, female-founded companies are elevating much less as an total percent as they move via seed, early and late-stage project. across all funding stages in 2016, $ 10 billion went to companies with as a minimum one feminine founder contrasted with $ ninety four billion invested in male-handiest founder groups.

Gené Teare is the director of content material at Crunchbase.

Featured picture by the use of Flickr user WOCinTech Chat underneath CC by picture has been cropped.
Fundings & Exits – TechCrunch


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