Woeful Funding Stats for Women Entrepreneurs

The Boston Globe recently published funding stats women entrepreneurs for 2016.  It shows how much work we have to do to grow support for women in entrepreneurship.

In 2016, only 9 percent of the $71.7 billion in US venture capital funding went to companies with female founders, according to data prepared for The Boston Globe by the research firm PitchBook.

That was down from 13 percent in 2015, which had been the highest level in years.  The numbers in Boston are marginally better: Last year, about 13 percent of Boston-area VC money went to firms with at least one woman founder, according to PitchBook data, though that, too, was a decline, from 18 percent in 2015.

I wished they had included stats around minority founders as well.

Note that this isn’t just for companies with a founding team comprised entirely of women.  This is for founding teams that include any women at all.

I think it’s going to be increasingly clear over time that companies have to look like their target audience / customers if they are going to be successful.  There is a sea change coming in the demographics of the U.S. specfically, and it’s going to create new opportunities that more diverse founding teams, and companies, should be better positioned to take advantage of.

But it’s going to require a lot of work to put in place the support structures from childhood through college and through the startup eco-system to support increased diversity.

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