High-Performance Entrepreneurs: Women in High-Tech (Illuminate Ventures)

Summary

• Women make up more than 30 percent of the high-tech workforce yet receive less than 10 percent of venture funding.p.2
• Women's involvement at officer level in companies that IPO grew from 10 percent in 1997 to over 55 percent in 2007.p.2
• Research on 600 European venture-backed companies found those run by women had annual revenues 12 percent higher while using one-third less committed capital.p.4
• Women-led high-tech companies typically launch with capital at levels 30 percent to 50 percent less than those led by men.p.4
• Women-co-founded companies accounted for 15.7 percent of entrepreneurs seeking angel capital in 2008.p.6
• Women angel investors represent just over 15 percent of the total in the United States, and less than 7 percent of VC investing partners are women.p.7

Key insights

1. Between 1997 and 2006 women-owned or led firms were the fastest growing sector of new venture creation in the United States, at five times the rate of all new firms.p.4
2. By 2005, one in five U.S. firms with revenue of $1 million or more was woman-owned.p.4
3. Companies with greater gender diversity outperformed those with less, frequently by as much as 30 percent.p.5
4. A study of 1,500 U.S. firms found a strong positive association between firm performance and female participation in senior management.p.5
5. High-growth women-owned businesses are six to eight times more likely to gain angel capital than venture capital.p.6
6. In smaller active IT venture firms managing between $50 million and $250 million, women hold 10.37 percent of investing partner seats.p.8
7. A survey of 10,000 Women 2.0 members found all held at least one bachelor's degree and 38 percent also had a master's degree or a doctorate.p.3
8. Nearly 30 percent of women with start-up executive experience worked for companies headquartered in California.p.11
9. Men typically start businesses at 25 to 35 years old, while women historically start at 35 to 45.p.11