It is the 21st century and there are no boundaries to get educated or create something. We see on statistics, that people establish more and more startups each year. And as we have mentioned the opportunities are equal to everyone but it is known that only 20% of startup founders are female in 2019.And the first thought is: are startups still a big boys club? Well, the answer is no. In this article, we will prove that women in the startup ecosystem level up the whole game.
Some facts about women in startup ecosystem
Since even before the dot-com era of the 90s, technology startups have been traditionally very male-dominant. These factors led to the situation that in the tech industry male-dominated culture became a norm. But 20 years later the situation is changing. Gender diversity is spreading and we hear about more and more women in startup ecosystem. But the latest surveysprove that the situation is changing in a slow pace. Investors lack the confidence to invest in women-founded ventures. But there some good news. From 2009 till today we can see a double increase of women in startup ecosystem.
Sad, but tech is still the boys club. For example the global Linkedin report proved that only “22 per cent of artificial intelligence (AI) professionals globally are female, compared to 78 per cent who are male. This accounts for a gender gap of 72 per cent, which has remained constant over the last years and does not at present indicate a positive future trend. The implications of this finding are wide-ranging.”. This situation is caused by a gender bias in academia. For years engineering and CS were boys-only club and women were frightened of exploring those fields. Thankfully the situation changes and we see an increase of female techies. But as mentioned in our previous postthere are still a lot of cases of gender based discrimination in tech which leads to less women in startup ecosystem.
Growth is in the details
Here is a simple situation: man and woman are looking for a new table. Men see four legs and a surface. Women see it also but she also spots the colors, shapes and other details. The same is in business. Studyshows, that women are better analysts. As we know in rapidly changing startups attentiveness is everything. For example, even the startup has the game-changing idea it would be nothing without the most valuable asset- people. The feature mentioned before helps to see not only a candidate’s resume but his soft skills also. And there is no secret, that it matters too. You can easily find heavily experienced engineers, but to find an emphatic person is a real quest. It is crucial to see a larger picture and not only skills. Also the startup’s growth is in the data. Earlier on this text we wrote that it is proved that women have better analytical skills. And yes it is crucial nowadays. How can you grow without knowing what path is the best for user acquisition? So we can conclude that women in the startup ecosystem are vital for product and corporation growth.
More women in startup ecosystem lead to more money
There is no secret, that every startup’s goal is to raise money. It makes sense because funds help to make your idea live. And in this world where startups failoften it is crucial to managing those funds adequately. 2017 Startup Report shows that women in startup ecosystem increase the revenue growth in a startup compared to men-only led startups. And even women-led startups receive less fundingit does not stop them to grow their ventures on a better rate. Experts think that more creative decision making helps to do it. So we suggest to consider hiring more women not only to comply with gender quotas but also to scale your growth.
Shown facts proves that lack of women in startup ecosystem leads only to slower growth and less successful growth path. And even if male dominance in tech world is considered as a norm we should focus to changing a game rules. And there is no better way than making the whole ecosystem gender-equal.