2% in 2007, 2% today.
And how to move the needle
2% of venture capital goes to solely women-founded start-ups. Same as in 2007.
I attended the Women’s Venture Summit last week (thank for the hook-up
), and now I’m obsessed again with the 2%.It’s one of those well-worn stats that every woman in the start-up ecosystem has heard: 2% of venture capital investment goes to companies founded solely by women.
Because I’m a data nerd I always make sure to point out: It is NOT that only 2% of women get funded. And it is NOT that only 2% of venture capital goes to companies with any women amongst its founders. We’re talking about companies founded solely by women. Like BlogHer was (three of us). Like Cheryl’s start-up Attentively was (two women), and like my most recent gig The Cru was (solo founder Tiffany Dufu).
Back in 2007 when BlogHer raised its Series A, the number was 2%. Today the latest figure remains 2%.
That is more than 15 years without moving that needle an inch, despite all the data in the world saying that diverse founding teams deliver better results.
Higher multiples. Better capital efficiency. And so on.
That link goes to a white paper my #forevercofounder Lisa Stone wrote when she was a partner at West River Group. She synthesized data from numerous studies by the biggest analysts. She did the work for all y’all.
I’ve been thinking about this number for ages, because after years of making the data argument I must admit defeat. And admit that the theoretically data-driven venture ecosystem does not, in fact, live and die by the data.
None of us do, if we’re being honest, because we’re human. It’s probably more accurate to say we live and die by our feelings.
What is to be done? What argument would be effective? Or do women of all ethnicities and people of color of all genders dedicate themselves to finding alternate pathways? Do you make the trade-off that sure, maybe you won’t be able to scale quite as fast or quite as big, but you won’t knock your head against the wall of a fortress that seems to clearly not want you there? I mean that’s where my thinking is, but I’m not trying to build something that requires significant capital investment right now.
So, I’ve been thinking of other modes of persuasion.
There’s the moral argument. As in, not only do you get better outcomes, but you get better karma, because it’s the right thing to do.
From what I’ve observed, the “do the right thing” argument results in existing venture firms creating “special,” segregated funds dedicated to under-served founders. And those funds are vested with but a fraction of the dollars of their regular funds. Separate but nowhere near equal.
And last week I started to wonder if we should try the maverick argument. Namely, every VC has the same data they don’t live by, so which of them has the guts, the keen insight, and the leadership quality to be the contrarian outlier who cuts through the old-school pattern matching that has resulted in the 2% figure to begin with and leaves the complacent, security-driven strategy of yesterday behind to grab for that brass ring of higher returns? I mean, I’d throw in “higher risk, but higher reward,” but the higher risk part isn’t even true.
I haven’t convinced myself. But hell, almost anything is worth a try.
What do you think? Does the maverick argument have legs? What will move this stubborn stubborn needle???? LMK what you think!
What else is going on?
The Op-Ed Page podcast
Episode 96 of The Op-Ed Page Podcast explored an aha moment I had reading Owning Our Struggles: A Path to Healing and Finding Community in a Broken World by my favorite mental wellness practitioner,
Somewhere between setting boundaries and being authentic, I became a “withdraw-er” who doesn’t share the bad because it doesn’t measure up to other people’s struggles and also doesn’t share the good because it doesn’t measure up to other people’s wins.
There were other great aha moments and practical advice in the book, but that was the one that made me sit up straighter.
If that sounds a little like you, take a listen. I’d love to know if it resonates with you too.
TikToks this month
I’ve been busy, and my TikTok experiment has suffered the most. I did post a rare negative book review, and of a beloved international bestseller, no less. In fact I discovered that some of my own family members are big fans of this book and they, who never comment on anything I post anywhere, emerged from their lurker lairs to make sure I knew they disagreed with me about My Brilliant Friend by Elena Ferrante. Into which camp do you fall?
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Out in the world
Last chance: My #BuffyLifeLesson talk is in one week via the Professional Business Women of California. We did the dry run today, and I’m pretty stoked. I’ve been refining the talk each time I do it, so this will be the best version yet! Join me? Register here.
Until next time, please leave a comment and let me know your thoughts on any or all of the above. This is basically my blog now! And as always, I appreciate a share of this newsletter or my podcast.
If I can help you break through the things that keep you stuck (or if you are intrigued by the idea of securing my fractional leadership for your initiative), set up your first introductory 30-minute consult for free by booking it in my Calendly. And you can always check out my new LinkedIn Learning Course, Telling Stories That Stick, a 57-minute course on crafting your stories for different audiences (media, investors, prospects, hiring managers) and ensuring those stories stick…and convey exactly what you hope to convey.
Funny you should post this today. I was just watching a trailer for a movie another friend Wendy Ryan co-produced about this very topic. It just debuted last week. Check out the trailer. I told her I’m looking forward to when we can see it, preferably in a theater. https://showherthemoneymovie.com/