📺 Stream EntrepreneurTV for Free 📺

Only 17 Percent of Venture-Backed Startups Are Led by Women The number has been flat since 2012.

By Nina Zipkin

entrepreneur daily
Shutterstock

When it comes to gender parity in the business world, the numbers aren't particularly heartening, and a new statistic from startup database Crunchbase doesn't make the situation any better: Currently, just 17 percent of startups have a female founder.

Not only that, but that number hasn't changed since 2012. There was an 8 percent increase in the years between 2009 and 2012, but no significant growth in the last five years.

The fundraising numbers aren't great either. Last year, companies with at least one female founder raised only 19 percent of all seed rounds, 14 percent of early-stage venture round and 8 percent of late stage venture rounds. Women-run companies also only raised 17 percent of angel or seed dollars, 13 percent of early-stage dollars and 7 percent of late-stage dollars.

Related: Women Won't Have Equal Numbers of Board Seats Until 2055, New Study Finds

Looking at all of the fundraising in 2016, $94 billion was invested in companies that were founded by only men, while $10 billion went to companies with at least one woman founder.

Unfortunately, this stagnating of thriving companies with female leadership is only one piece of the puzzle. Last year, the World Economic Forum predicted that the global gender pay gap, at the rate we are going, won't be bridged until 2186.

For representation on boards it's a little better, but when over a century is your timeline, that's a low hurdle to clear. Equilar, a research firm that focuses on board recruitment, predicted this year that the board of directors for 3,000 largest companies based in the United States would be split 50/50 men and women by 2055.
Nina Zipkin

Entrepreneur Staff

Staff Writer. Covers leadership, media, technology and culture.

Nina Zipkin is a staff writer at Entrepreneur.com. She frequently covers leadership, media, tech, startups, culture and workplace trends.

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Editor's Pick

Thought Leaders

It's the End of the Entrepreneurial Era As We Know It

With the rise of advanced technologies and AI, are we losing all sense of the independent business person and entrepreneur?

Business News

These 4 Words Make It Obvious You Used AI to Write a Paper, According to New Research

Scientists are increasingly using ChatGPT and other AI bots to write studies.

Science & Technology

Exploring How Virtual Reality is Changing Startups

Virtual reality's immersive environment is where startup marketing is headed, and early adopters will be the ones who profit.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Side Hustle

He Started a Luxury Side Hustle at Age 13 — Now the Business Earns More Than $10 Million a Year: 'People Want to Help You When You're Young'

Michael Morgan, now the owner of Iconic Watch Company, always had a passion for "old things" — and he turned it into a lucrative venture.

Business News

'They're Scared': PNC Arena Bans New York Residents From Purchasing Tickets Ahead of Rangers, Hurricanes NHL Playoff Matchup

The two teams will face off in Game 1 of the second round of the Eastern Conference fight for the Stanley Cup.