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It's 2017, and women still aren't being funded equally

It's 2017, and women still aren't being funded equally
From TechCrunch - July 16, 2017

Broadly, theventure capital industry is thriving. But still, too often, women seeking funding are left out ofthe boombecause of hidden biases, sexism and a general unawareness. Because of thisand recent reports of incrediblylow-brow behavioramong high-profile investorsit is more important than ever to understand where women founders stand when fundraising.

Since 2015, Crunchbase has reported on gender diversity in venture capital. And, once again, the story for women looking to be funded remains stubbornly predictable. Heres what the numbers tell us.

Distribution of women founders

Companies with at least one female founder grew from 9 percent in 2009 to 17 percent since 2012a stat thathas not changedfor five years.

Of the 17 percent of startups with at least one female founder, one-third are made up of teams that have only female founders. Another one-third are teams with two co-founders that include one male and one female. The last third represent teams that have 3+ co-founders with at least one female founder. Two-thirds of these startups, therefore, represent majority or equal female and male-founder representation.

Funding in women-founded startups

For the first two quarters in 2017, startups with a female founder raised $332 million in seed investment, or around 15 percent of all seed funding dollars. Approximately $6.5 billion has been invested in female-founded companies, representing more than 11 percent of all dollars invested in the first two quarters of 2017.

VC lacks women investors, possibly impacting ability to raise

On the investing side,only 7 percentof senior investing partners at the top 100 venture firms are women. Female founders face a greater challenge than male founders when fundraising,as they are required to break into male networks, which predominate at most investment firms.

For the first time in our reporting on the funding gap, we looked at seed and early-stage funding since 2010 to see if there is a difference in fundraising for female versus male-only teams. Funding at this stage is risky, with the investor focusing on the founding team and the idea.

Seed averages

As the chart shows, there is a persistent gap between what male-only teams can raise, and what female-only teams can raise. Teams with founders that are both men and women land in the middle, a somewhat new trend that has become more pronounced since 2015.

At the seed stage, we reviewed 2,400 rounds for female-only founding teams and 37,000 rounds for male-only founding teams. Since 2010, for seed-stage funding, women-only teams have raised on average $82 for every $100 a male founded team raises.

Early-stage venture averages

Backing founders

Glossary

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