"We need to get women to the point where they aren’t apologizing. It is time to take ownership in our success."
- TORY BURCH, CEO and Designer of Tory Burch
There are several innovative and creative ways women are disrupting industries yet when it comes to the big corporations and the tech world, there’s an invisible wall separating these women entrepreneurs from the “big table.” There aren’t many female founders who are able to occupy top positions, despite the large number of women outperforming male entrepreneurs.
According to Forbes, "only 15% of venture capital funding is allocated to female founders", citing a Boston Consulting Group study that revealed that "for every dollar of investment raised, female-run startups generated 78 cents in revenue, whereas male-run startups generated only 31 cents". Women outperformed men "despite raising less money ($935K versus $2.12M)". The VC firm First Round Capital collected data that showed "female-founder companies it had funded performed 63% better than all-male teams" and research from Kauffman Fellows found that "women-led teams generate a 35% higher return on investment than all-male teams".
Despite all this data pointing to women rocking entrepreneurship, the shape of one's genitalia is still “the primary determining factor for attaining funding” according to a Santa Clara study on 48,000 companies. Female-led start-ups are funded at a much lower rate than male-led start-ups, at a much lower valuation, and at a much later stage. This is not unique to start-ups and, even in the VC world, female-led funds receive less funding than male-led funds (you can read more here).
With such bleak statistics, why am I then so happy to see an increasing number of founders dropping the term “female” from their titles?
Ever since 2005 when I established my first e-commerce business, I have always called myself a founder. Yes, I am a woman and an immigrant, and there have been many instances where I was told there was no room for me at the big table. I have experienced first-hand the huge discrepancy in how female founders are treated compared to our male colleagues.
So I understand why many would choose to label themselves female founders. Our experience is shaped by an environment that excludes us, ignores us, and tries to send us to our own little tables. Declaring oneself a female founder is an act of calling out the discrimination against women in our ecosystem. And for that, I give my full-hearted respect.