Men dominate the start-up scene

Men dominate the start-up scene

According to a data analysis published on statista.com, 80 percent of start-ups will be launched by men, but only 20 percent by women. 

How can this inequality be explained? The answer is as banal as it is socially embarrassing and can be easily classified into the series of gender-specific stereotypes such as blue jacket – pink jacket or doll vs. police car. 

The number in the allocation of financing is even more significant than the gender-specific distribution. Women only receive two percent of the external investments as start-up funding for their start-ups, while men’s start-ups receive the remaining 98 percent.

The allocation of money alone is enough information to explain the inequality. Female founders are dependent on working with equity capital, so they can only splash out on their business ideas instead of using outside capital like their male colleagues. 

Men’s startups usually target high-tech, medicine, artificial intelligence. Things that change the future and are therefore above-average lucrative for investors in the long term.

According to the statement daily news Women, on the other hand, are more likely to be in “classically female” segments, such as clothing, nutrition and education. Self-cleaning children’s rooms would be nice, but due to the declining birth rate it wouldn’t be a really interesting investment for potential investors. Completely silent hammer drills or self-opening beer bottles are probably more interesting business ideas, but they are more likely to be developed by men for men. Welcome to the world of stereotypes and – with it – discrimination in the start-up scene. 

According to that Manager Magazine the study by the Boston Consulting Group shows that parity in founding and financing shares can only be expected in 2037. In any case, there is a positive trend, if we take into account that the proportion of female founders has increased from 12.8 percent in 2013 to 207 percent in 2023.  

 

 

Author of this study:

María Fernandez Campos


María Fernandez Campos

As a Senior Data Analyst at DataPulse Research, I research, gather, and transform datasets into actionable insights, enabling data-driven storytelling that resonates with the media. With over 5 years of experience in data analysis and business development across various industries, I specialize in unveiling critical trends and patterns.


LinkedIn

Related Posts

We turn data into headlines

Hire us to create data-driven studies that capture media attention.

We turn data into headlines

Hire us to create data-driven studies that capture media attention.