When we look back at 2017, we may very well end up describing it as a watershed year for women in the workplace. Despite years of progress, women still have to put up with pay gaps, misogynist cultures, and sexually coercive environments to make a living. Even female entrepreneurs that are in charge.
But over the past year, more women than ever before are calling out these unfair practices. The #MeToo phenomenon has put a bright spotlight on the pervasive problem of sexual misconduct in the workplace, and Silicon Valley is finally being forced to reckon with its woman-hating frat bro culture.
Despite generous media attention to these efforts towards gender equality, it remains to be seen whether or not these conversations will create real change.
Zooming in our lens to startups and entrepreneurship, a stubborn plateau of investment in women-founded businesses indicates that all of the hullabaloo about sexism is nothing more than hand-wringing, leading, so far, to little real change.
TechCrunch has been tracking over 50,000 global companies to assess how women are doing when it comes to investment in startups. Of the 54,702 companies who received initial funding between 2009 and 2017 only 16 percent had at least one female founder.
Although this number nearly doubled between 2009, at 9 percent, and 2012, at 17 percent, this percentage has stabilized in the past five years, hovering between 16 and 17 percent.
Companies founded exclusively by men continue to raise about 85 percent of seed money, with mixed-gender teams taking around 11 to 13 percent, and companies founded exclusively by a woman or women receiving only 4 to 6 percent of seed funds. Women-owned companies have also received only 3 percent of total venture investment dollars since 2012. In the early-stage venture phase, women-founded companies who have received venture investments only receive $77 for every $100 that male-owned companies receive, echoing the gender pay gap across industries.
It’s time for the tech industry to put its money where its mouth is. All of this lip service to creating a more woman-friendly work environment is meaningless until women in leadership are supported with the same dollars as male founders and CEOs.