{"id":38429,"date":"2023-10-20T14:56:26","date_gmt":"2023-10-20T14:56:26","guid":{"rendered":"http:\/\/startupsmart.test\/2023\/10\/20\/all-male-vc-firms-prevent-women-from-building-successful-startups-study-reveals-startupsmart\/"},"modified":"2023-10-20T14:56:26","modified_gmt":"2023-10-20T14:56:26","slug":"all-male-vc-firms-prevent-women-from-building-successful-startups-study-reveals-startupsmart","status":"publish","type":"post","link":"https:\/\/www.startupsmart.com.au\/uncategorized\/all-male-vc-firms-prevent-women-from-building-successful-startups-study-reveals-startupsmart\/","title":{"rendered":"All-male VC firms prevent women from building successful startups, study reveals – StartupSmart"},"content":{"rendered":"
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Male-dominated venture capital firms play an instrumental role in creating the gender divide in tech entrepreneurship, according to research into\u00a0venture capital financing and female tech entrepreneurs.<\/p>\n

The research led by assistant professor of finance at the Alberta School of Business Sahil Raina, reveals a massive difference in the success rate of startups when the VC that backs them is a woman.<\/p>\n

In Harvard Business Review<\/em><\/a>, Raina said that when a woman entrepreneur secures investment from an all-male VC firm, it radically drops her chances of a successful exit.<\/p>\n

\u201cIf you define success as an exit from venture capital financing via acquisition or an IPO [initial public offering], female-led startups perform much worse than male-led startups,\u201d he said.<\/p>\n

\u201cAbout 17% of female-led startups successfully exit VC financing whereas 27% of male-led startups do.\u201d<\/p>\n

The study reveals that when all-male VC firms back startups, male-founded ventures achieve a 25% lead on their female peers in making a successful exit.<\/p>\n

This gap vanishes when startups are backed by\u00a0women investors.<\/p>\n

\u201cIf female entrepreneurs get their funding from VCs solely led by men, their startups will be far less likely to be acquired or make it to an IPO,\u201d said Raina.<\/p>\n

The findings suggest that this may be the reason there are fewer women in the A-league of high-growth tech ventures and publicly listed companies, while their numbers in other areas like small business ownership and the general\u00a0workforce continues to rise.<\/p>\n

To address the gender gap in the tech sector, Raina believes it\u2019s not enough to only increase the number of women launching startups.<\/p>\n

\u201cA crucial step to helping more female entrepreneurs succeed may be to encourage more women to join venture capital firms,\u201d said Raina.<\/p>\n

It\u2019s a challenge many of Australia\u2019s own entrepreneurs and investors are quite familiar with.<\/p>\n

Serial entrepreneur Rebekah Campbell called this the elephant in our startup ecosystem<\/a>.<\/p>\n

\u201cWe really need to start addressing the lack of female investors,\u201d she told StartupSmart.<\/em><\/p>\n

\u201cThese are the people that are making the decisions about which people and ideas get backed.\u201d<\/p>\n

Read the full study here<\/a>.<\/p>\n

Follow StartupSmart on<\/em>\u00a0Facebook<\/a>,<\/em>\u00a0Twitter<\/a>,\u00a0LinkedIn<\/a>\u00a0and iTunes<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

Male-dominated venture capital firms play an instrumental role in creating the gender divide in tech entrepreneurship, according to research into\u00a0venture<\/p>\n","protected":false},"author":2,"featured_media":61674,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"_links":{"self":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/38429"}],"collection":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/comments?post=38429"}],"version-history":[{"count":0,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/posts\/38429\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media\/61674"}],"wp:attachment":[{"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/media?parent=38429"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/categories?post=38429"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.startupsmart.com.au\/wp-json\/wp\/v2\/tags?post=38429"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}