Women in Venture Capital Breakout Talk | Tech Inclusion SF 2016


>>Is my mic on? Yeah. So I’m Gene Teare. I’m head of content at CrunchBase. And the reason I’m here today is I’ve conducted
three studies in the last two years looking at gender equity out of the CrunchBase data
set. So I’m going to give you a brief synopsis
of some of the studies that we have done. I joined CrunchBase early on. I joined over eight years ago. And at this point CrunchBase is a very old
startup that just got a series A over a year ago. We got spun out of Verizon and others, and
backed us with our series A. We’re on our own and charting a new course. So we did three studies out of the CrunchBase
data set. We looked at female founders. And because I think founders are a very strong
leadership indicator. These individuals are trailblazers. They take on the whole responsibility for
their company and their future. So looking at founder trends around gender
for us was an extremely interesting first step. The next study we did looked at female founder
and male founder educational backgrounds and how they diverged. And then the third study looked at women in
venture. And when we looked at the female founder studies
who was very interesting to us is that you go in and before you’ve run the study you
don’t know what the data’s going to tell you. And we, to be honest, were late to the game. Tracy’s piece around gender equity when it
came to engineers came out in October of 2013. And we only added gender to the data set in
March, 2015. We were very late to the game. But because CrunchBase has been around for
eight years and building the data set, it meant we had a strong foundation to kickoff. And within two months we did our first study. I want to tell you we haven’t added race or
ethnicity to the data set. For us that’s a little bit more challenging. We’re global, and race means different in
different parts of the world. And race is less obvious than gender. It would be more difficult to assign people’s
race. We need everyone to assign it to themselves. What we found that was interesting to me is
the number of companies with at least one female founder between the year of 2009 and
2015 had gone up. It had almost doubled. So we moved from about ten companies who had
an initial funding date in 2009 who had at least one female founder to the most recent
numbers was 2015 when around 17%. So on the one hand that felt really good because
the numbers are trending up. And when I was out there in the industry and
going to conferences I felt like I was meeting more women in diverse roles as well as more
women who were leading companies. So these numbers on the one hand fit with
what I was experiencing. On the other hand it also tells you we have
an extremely long way to go. So these numbers are encouraging, but not
so encouraging. I think the great thing about doing the studies
in CrunchBase is we repeat these studies every year so we can see over time how we are doing
and whether things are trending up or flattening out. The next study we did was on founder educational
background. We took female and male founders, more male
than female founders. We found that men were twice as likely as
a founder set to have a STEM degree. That wasn’t surprising given the discussion
we were having. Women were twice as likely to have a life
sciences degree, and three times as likely to have a mathematics degree. Those indicators are encouraging. The other thing that was interesting is female
founders are four times more likely to have an arts and humanities background. And I think given the creativity that’s required
to found a startup, I think this is a good background for a founder. The third study that we did looked at the
women in venture. A lot of people have talked about women in
venture. But I was excited too this because of our
data set. Not only to run the study, but people can
look at CrunchBase and dissect the trends. Globally at the top 100, only 7% were women. The venture community trailed behind the rest
of the industry. And everyone has talked about these numbers
not being great. Mostly in the industry people said it was
around 4%. We combed through the data and went through
it over and over again. It took me three months to work on this study. So the number was around 7%. And I don’t think that’s shifted massively. There have been some high profile women joined
those top 100 firms. At the time we did the study, April of this
year, 62 firms had no of the top 100 around the globe had absolutely zero female partners. And since this Sequoia just recently last
week announced Jess is now joining Sequoia as an investing partner. As well as founders fund in hired sign bannister. So the 62 is down, but a middling amount. Not a huge number. Again, these numbers are not great. And I think it’s important because the whole
industry needs to reflect on what’s happening and why we’re in this position today. We also looked at accelerators and corporate
venture firms. Because I do meet more women when I go to
accelerator events on the investing side. And someone with corporate venture because
their structures are different. Numbers are around 12%, better, but not as
good as they need to be. We looked at women at the lower levels of
the associate principal levels to see what those numbers looked like. In CrunchBase those numbers were around 22%. And I do feel when I talked to a lot of venture
firms that are actively seeking to bring people in at the junior levels, a lot of people say
those are not the people with power today, but with the venture industry getting exposure,
learning what it takes, possibly moving out of the venture firm into industry and understanding
that world and coming back is an important kind of training ground. And leads me to believe in the future we will
see more women investors. We did also in the report look at a trend
where there were more female women who had found a career who were then setting up their
own venture firms. Smaller funds, but a significant trend for
sort of seed stage or pre seed stage venture firms. We looked at funding in female startups. Again, it was interesting to run these numbers. I heard Megan Smith often cite the fact this
she said 4% of venture dollars go into companies that have a female CEO. When we ran it for female founders around
10% of venture dollars are going into companies with at least one female founder. And about 12%. The seed numbers are a little bit better,
it’s 15 and 17. And hopefully as these companies move from
seed to venture we’ll see the numbers on the venture side go up alongside that. Finally CrunchBase just launched CrunchBase
pro. Every time I have run a study, people said,
Gene, it’s great to see the data, great to see the trends. But really what I want to see is the people
behind it. I want to investigate and reach out and talk
to the people that have made up these studies. We just launched CrunchBase pro a month ago,
I set up the queries. If you want to follow up afterwards, I will
send them. I have the female founders of U.S. based companies,
female partners of investor firms, female board members and CEOs. It’s about leveraging and allowing people
to use the data for their own insights. And I think CrunchBase Pro allows you to do
this. I tried to put the list. This is the female founder list organized
by CrunchBase rank. And the number was in the region of over 6,000
female founders in CrunchBase who were in the U.S. Thank you very much. You can reach me on Twitter, or at CrunchBase. Happy to share the studies as well as any
of the data underlying the studies. So thanks all. [ Applause ]
>>I think that we have time for a quick question if anyone wants to ask something to Gene? No? Maybe? This is a great opportunity. Trust me.>>AUDIENCE MEMBER: Thank you. I just want to know what with all this information
how are the venture capitals, now they’re aware of this, trying to make any change,
or just like hey we’re going to find more female people. What are you doing with all of this information
that you’re providing?>>So my experience with the venture capital
industry is I hear different things. You know, they’re very small teams. Largely men who tend to hire people that they
know and trust. So they’re hiring more men. I think there is a very broad awareness within
the venture capital industry that we have an issue. And the reason I think that’s happening is
because these venture firms are meeting more female founders. Are coming to them and raising money. And when you just see men on the other side
of the table it’s in stark relief. I think the pressure in the venture community
is partly coming from this discussion. But also coming from the fact that the makeup
of founders both from an ethnic perspective and from a gender perspective are shifting. And if you go in and it’s all men on the other
side of the table, you think what’s wrong with this picture? And I think that’s the pressure we’re bringing
to bear. Again, we would like the female founder numbers
to be better. But that’s find of how I see the shift.>>Thank you so much. Let’s give a big applause to Gene.>>Thank you. [ Applause ]
>>And I have a quick announcement again. People have been asking us where is the pathways
to computer science interactive presentation? And it’s actually here at the solutions lab.

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