WHEN WOMEN HAVE more roles in founding a startup, opportunities for other women increase. That’s according to a report from the Kauffman Fellows Research Center, which analyzed information from more than 90,000 companies over the past 18 years.
When there is already at least one female founder at a new venture, it’s statistically likely more women will be hired for other executive roles. For example, nearly half of consumer service firms with woman founders had women serving as C-level executives, but only 10 percent of consumer service companies with all-male founders had women in C-level roles. The research center identified another advantage for companies with at least one female co-founder: They raise more capital by stage than all-male founding teams.
According to the study, the percentage of women-founded companies has grown from just 4 percent in 2001 to 21.6 percent in 2018. “This is progress,” says Tammi Jantzen, co-founder and CFO of Astarte Medical, a healthcare startup. “But given that this is over a 17-year period and we are very far from parity, we have a long way to go.”-
“Data Show That Gender-Inclusive Founding Teams Have Greater Success in Fundraising and Innovation” was published October 3, 2019, at www.kauffmanfellows.org.