Is The Tech Start-up Landscape Changing For Women?
According to investor Bitna Brown, the world misses out on all the promise that it may see if half of its population – women – is “under-utilized” in the tech startup sphere. Women are major consumers and the absence of their leadership or input in the space of innovation means that many great ideas will never see the light of day.
Brown also emphasizes the need to target business that “utilizes technology to disrupt an ongoing problem that is scalable and has the capacity to generate massive revenue and employ thousands of people.” This is why Brown is leveraging her resources, non-profit fundraising ability and mentorship experience to help launch female-owned startups.
A report from Bloomberg Businessweek has demonstrated that women have shown a strong record as owners of tech firms. Capital efficiency, ROI and revenue have been shown to be higher than average for female-led private tech companies. Also, growth in women-owned businesses with revenue of more than $10 million reached, according to a recent study, 47 percent higher than other businesses in this revenue range.
With this amount of success in the tech sector, the resources for women seeking startup ventures are greater than ever. In the past, raising venture capital often depended upon being in a network of former colleagues, and given the demographics of the tech industry those networks have been mostly male. However, this pattern is steadily changing as the percentage of women who are active angel investors has reached 21.8 percent.
In fact, there are dedicated venture capital and accelerator networks that target women specifically. These include Golden Seeds and Springboard Enterprises, both of which are very large and have proven records of backing and launching women-owned tech businesses.
Furthermore, crowdfunding and crowdinvesting are leveling this field. While venture capital networks are still important, the barriers to true crowdsourced investment opportunities have been largely lifted and female entrepreneurs will more easily be able to get help from the many strangers out there that are eager to lend some of their resources to help women-owned tech startups flourish.