Home > Uncategorized > What’s Gender Bias Got To Do With It? Almost Everything For Women Seeking Venture Funding

By Dr. Lucienne Ide

Lucie Ide is CEO/Founder of Rimidi, a JumpFund portolio company.  Dr. Ide’s post was originally published on Forbes.com, October 2, 2015. View the original article here.

“On the heels of the recent announcement that a new Atlanta venture fund has been created specifically to fund women-owned startup businesses, it made me think, ‘Why haven’t we moved the needle more in funding women-owned early-stage companies? And, do we still need venture funds whose specific mission is to provide capital to women only?’

The answer, apparently, is a resounding yes.

Despite studies showing that companies with diversity of all sorts, especially gender diversity, outperform other companies, women-led firms lag behind men in funding or even being considered for funding mainly because of gender bias.

Just the Facts, Ma’am

First, let’s talk numbers. According to a 2014 Credit Suisse Research Institute report, which examined the performance of 3,000 companies worldwide over a two-year period, large companies with a market capitalization exceeding $10 billion and with at least one woman on the board outperformed those with no women on the board by 5%.

And the news doesn’t just apply to large companies. Healthcare startups with women on the executive team raise more money than all-male teams, according to RockHealth’sThe State of Women in Healthcare. The average investment size of healthcare startup teams comprising women is $12 million compared to $8 million for all-male teams. The average valuations are higher, too. For diverse teams, it’s 64% higher in the first round of financing and 49% higher in the last round of financing compared to all-male teams, according to the report.

Yet, despite the fact that women are key purchasers and stakeholders in healthcare, they continue to be missing from the executive ranks and represent a small percentage of funded digital health companies. According to RockHealth, women make up just 6% of CEOs of funded digital health businesses.”