Why Women-Owned Startups Are a Better Bet
Recommendation
Start-ups led by women receive an average of $1 million less in early-stage investment than those run by men and generate double the revenue per investment dollar. This suggests that women-led start-ups are the better investment. So why haven’t male investors at US venture capitalist firms gotten the message? getAbstract recommends this inspiring analysis to women entrepreneurs, start-up accelerators, venture capital firms, and other investors.
Summary
About the Authors
Kate Abouzahr is Global People Team senior manager for Boston Consulting Group (BCG) and manages its thought leadership on gender diversity. Frances Taplett is Global Consulting People Team director for BCG. Matt Krentz is senior partner and managing director of BCG Chicago. John Harthorne is CEO of the MassChallenge start-up accelerator.
Comment on this summary
"Despite this disparity, startups founded and cofounded by women actually performed better over time, generating 10% more in cumulative revenue over a five-year period: $730,000 compared with $662,000.
"In terms of how effectively companies turn a dollar of investment into a dollar of revenue, startups founded and cofounded by women are significantly better financial investments. For every dollar of funding, these startups generated 78 cents, while male-founded startups generated less than half that—just 31 cents."
Again, thanks. We appreciate your eagle eye and your math. E. Rauzin, Senior Managing Editor, getAbstract