Is discrimination in the startup world decreasing? Geri Stengel takes a look at some of the numbers that came to light in 2014. Hopefully the trend continued in 2015 and improves even further as we enter 2016. The number of women receiving funding is still rather abysmal, considering that women are starting businesses in record numbers.We’ll have to see how the industry evolves in the coming year.
Angels Change The Ratio For Women Entrepreneurs
Women build and leverage the ecosystem
While venture capital’s track record with women makes you want scream with frustration, the new angel numbers will make you want to jump for joy. For nearly all metrics, the numbers hit record heights in 2014, according to the Center for Venture Research, which researches angel investments. In 2014:
- 26% of all angels were women, increasing by an impressive 43% from the previous year.
- 36% of all companies seeking funding were women, increasing by a whopping 83% from the previous year.
- 28% of all companies receiving funding were women-run, a substantial 44% increase.
- 15% of all women-run companies succeeded in raising capital vs 22% for their male counterparts. “Typically, when there is a surge in the number of entrepreneurs seeking angel funding, the overall yield [success rate] goes down,” said Jeffrey E. Sohl, director of Center for Venture Research. The 15% success rate is within the historic norms for entrepreneurs raising capital from angels.
The numbers didn’t surprise Angel Lee, founder of 37 Angels, a community of women investors that invests in early stage companies (male and female-led). 37 Angels sources high potential deals and coordinates due diligence for angels. It also trains angels. For 15 years, the ecosystem for women-run companies in need of equity financing to scale has been building itself out.
Early on, Springboard Enterprises and Astia provided leadership training and access to capital. Super angel groups with venture funds, like Golden Seeds and Belle Capital, which invest solely in women-run companies, began forming. Other angel groups and venture funds also started up. These didn’t necessarily focus on investing in women-run companies but, …