Only 7% of partners at top 100 venture firms are women 1024 577 Moxie Future

Only 7% of partners at top 100 venture firms are women

Crunchbase, a great source of information on just about any company, has had their eye on diversity for a while.  In 2016 they realeased their First comprehensive study on women in venture capital and their impact on female founders which highlighted some hard truths about diversity in the top global venture firms.  And one year on, progress has remained slow.

What they found

Crunchbase looked at the top 100 venture firms globally, based on longevity (active since 2010), recent activity (investing in 2014 and 2015), rounds led and fund size. They looked at all the women listed as “partners” at those firms, and screened that list to ensure they were true “full time investing partners,” which, in their definition, means the authority to invest the partnership’s funds.

It was found that 7 percent of the partners, or 54 of 755, are women, and 38 percent of the top 100 firms have at least one female partner. Twenty-eight firms had one, while seven had two. Sequoia Capital was one of the firms with two female partners, both based in China.

Here are the top conclusions they make in the report:

  • 7 percent of investing partners at the top 100 venture and micro-venture firms are women. Looking across all firms, the percentage rises slightly to 8 percent.
  • 12 percent of venture rounds and 10 percent of venture dollars globally between 2010 and 2015 went to startups with at least one woman founder.
  • 17 percent of seed rounds and 15 percent of seed dollars globally between 2010 and 2015 went to startups with at least one woman founder.
  • There is scant evidence yet to suggest that on an industry-wide basis firms with a female partner are more likely to invest in startups with a female founder. There is clear evidence, however, that the small number of venture firms with female founders and/or an unusually high percentage of female partners, invest at elevated levels in female entrepreneurs.
  • Seed investors follow the same pattern as venture investors when it comes to the percentage of female partners overall and their impact on a firm’s investments in startups with female founders.

What impact does diversity have on performance?

TechCrunch also reported some performance figures that support the idea that more diversity actually results in better performance in their article Why we need diverse founder and funding teams and how to find them.

First Round Capital found that, over 10 years, teams with at least one female co-founder performed 63 percent better than male-only teams. Racially diverse teams also perform 35 percent better than their industry peers. Yet only 8 percent of venture capital money is going to women-led companies, and 1 percent is going to companies with a black founder.

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