Quartz Report: Female-led startups are worth just 20% of men’s

The startup landscape is rapidly changing, and women are leading the way. The last few years have seen more women than ever start companies and join the top echelon of venture capital firms.

Studies have shown, women tend to run more profitable businesses. They also burn less money and deliver higher returns to investors.

Despite these facts, female startup founders still lag far behind their male counterparts.

Quartz analyzed top US startups to understand how women are faring in the most dynamic segment of the American economy and came up with the following findings:

  • Top female founders raise less money. They raised a median of $50.4 million in venture capital compared to $226 million for men.
  • Company valuations for women are also far lower: $65.5 million for women vs. $400.4 million for men.
  • Teams are still predominantly made up of men. In their dataset, 87% of top founders were on all-male founding teams, while the same was true for just 31% of women
  • Female founders thrive outside Silicon Valley. Compared to men, there is a greater share of female founders in  New York and Los Angeles than in other US cities.
  • Women are more likely to lead consumer products and services (B2C) and healthcare companies, and men were more likely to start companies in financial services and B2B industries.
  • More women are entering the executive suite; however, men are still more likely than women to hold the CEO and CTO titles. Women, comparatively, are more likely to be chief operating officers and chief scientific officers.

With the growing support for diversity and gender parity in the startup scene, we hope to see better representation of women in in tech and startups.

 

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