Women lag in venture capital even as they make strides as entrepreneurs
By Sarah McBride
SAN FRANCISCO (Reuters) - Women venture-capital partners are becoming scarcer even as more women entrepreneurs are winning venture cash, according to a report from Babson College.
The report, "Women Entrepreneurs 2014: Bridging the Gap in Venture Capital," paints a picture of a start-up environment that is making strides in some areas, such as backing female entrepreneurs, even as the percentage of female venture capitalists slips.
About 15 percent of U.S. companies receiving venture-capital investment, meaning cash injections from venture firms in a business's early days, included at least one woman on the executive team, according to the report. That compares with just 5 percent in 1999.
But just under 3 percent of companies receiving venture cash had female chief executive officers, according to the report.
At venture-capital firms globally, about 6 percent of partners were women, compared with 10 percent in 1999, the study showed. The numbers jibe with a Reuters study last month that showed that declining percentages of venture capitalists are women and that many top firms have no female partners at all.
Many female entrepreneurs say that buttressing the numbers of women venture capitalists is key to advancing the numbers of female entrepreneurs.
The Babson report seemingly backs that up, with women venture capitalists more than twice as likely as men to invest in start-ups with a woman on the management team. Larger, more established venture firms were also more likely to do so.
The report comes at a time when difficulties facing women in technology have hit the headlines. Continued...