Tomorrow, the White House will be holding The United State of Women Summit. I won’t be attending, but I will be going to the San Francisco Women Startup Challenge Pitch Competition, so my mind, like many others, is on women and entrepreneurship this week.
Here’s the skinny on what you should know about women and entrepreneurship:
1. Investment: women take half as much, less of the time
On average, women have half as much money as men when starting a business: $75,000 as compared to $135,000 for men, according to the 2007 US Census Survey of Business Owners (SBO). According to Golden Seeds more than 30% of women don’t take investment at all, while less than 20% of men could say the same.
2. Women don’t get funded equally
3. Women fund women
15% of funded VC companies have a woman on the executive team (that’s 985 out of 6,793 companies between 2011–2013). Since VC firms with women on the team are more likely to invest in women-led companies, that’s doubly bad news.
4. Women profit
According to Illuminate, women-lead companies ran leaner, seeing roughly the same rate of return with 1/3 the burn rate. And according to the Kaufmann Foundation’s 2013 study, “Women in Technology: Evolving, Ready to Save the World” suggested that investments in women-lead companies had a 35% higher rate of return.
I hope this gets you in the spirit for tomorrow, whichever event you are more excited about!