Tech: This tech investment firm published startup diversity stats for the first time and it shames venture capital's 'collective blind spot'

Tech: This tech investment firm published startup diversity stats for the first time and it shames venture capital's 'collective blind spot'

click photo for more information
Tech: This tech investment firm published startup diversity stats for the first time and it shames venture capital's 'collective blind spot'
Early stage investor Forward Partners is doing better than the average venture capitalist when it comes to investing in female founded startups. The firm has released diversity statistics on its portfolio company for the first time. Tech startups and investment remain fairly homogeneous, with ethnic minority and female founders still in the minority. One problem […]
0
14

Rachel Carrell (left), founder of Koru Kids, which provides childcare after school.

Early stage investor Forward Partners is doing better than the average venture capitalist when it comes to investing in female founded startups. The firm has released diversity statistics on its portfolio company for the first time.

  • Tech startups and investment remain fairly homogeneous, with ethnic minority and female founders still in the minority.
  • One problem is that no one really wants to disclose how lacking in diversity they are.
  • One early-stage venture capital firm has studied its own portfolio of startups to see how many have female and ethnic minority founders and revealed the numbers.
  • Forward Partners is beating the average, with 10 companies out of its 52 investments having at least one female founder, but the investor wants to do better.

The tech startup and investment is a homogeneous world, with the stereotype of white men at the helm still prevailing.

According to data from The Entrepreneurs' Network and Beauhurst released in 2017, just 9%, or £358.4 million, of UK investment went to startups with a female founder. The remaining £3.6 billion went to male-founded companies. It isn't for want of trying either — female founders anecdotally report that it is tougher for them to raise money.

One early-stage venture capital firm, Forward Partners, is releasing diversity statistics for its startups for the first time in an effort to shine a light on where it puts its millions. Forward has invested in 52 startups since 2013, such as peer-to-peer lender Zopa, and has $84.4 million (£74 million) in funds under management.

Here's how its 52 startups breakdown:

All-male
founders: 42
At least one female founder: 10 (7 have all-female teams)
All-white founders: 36
At least one ethnic minority founder: 15 (8 are all ethnic minority teams)

The figures still show a stark disparity between the number of men and women being funded but it looks like Forward is doing better than the average. There isn't much to go on beyond anecdotal data but, according to Crunchbase, teams with female founders accounted for just 9% of all global venture deals in the first quarter of 2018.

Forward Partners investor Louise Rix, who conducted the research, also looked through six weeks' worth of startup applications to determine how successful different types of applicants were at winning investment. That comprised 300 pitch decks.

She found that all-female applications made up just 7% of pitches, but those teams did well with funding, since 14% of Forward's portfolio are all-female teams, or seven companies.

Forward Partners itself is not hugely diverse, a fact that Rix — the only woman on the investment team — acknowledged. "What we want to say is that we care about this, that we’ve got a lot improvements to do, this is where we’re at, and we're aiming to improve," she told Business Insider. "It would be great if other VCs would share their data as well."

There is a dearth of information from the European venture capital industry about the diversity of its investors and portfolio companies. Diversity VC, a group campaigning for more diverse investors, released a landmark study in 2017 showing that just 13% of people calling the investment shots at venture capital firms are women.

Rachel Carrell is the founder of a Forward Partners portfolio startup, Koru Kids, which provides childcare to help working parents after school. She raised £3.5 million ($4.6 million) in a seed round in May from Forward and Albion Capital.

"It's really good for society to have more diverse investments," she said. "When you invest in women, you do get different types of businesses. A lot of investors, they have a collective blind spot as a group.

"Did [being a female founder] make a difference? It's not a controlled experiment, so it's hard to tell. Could I have raised more or faster, it's impossible to tell. But I don't think it’s a coincidence this is the first significant VC-backed startup to address childcare I’m a mum of two kids."

Rix said Forward had taken a first step in benchmarking itself, and planned to improve from there. "We are pretty pleased we’re beating the averages," she said.

It’s a Girl! LeToya Luckett-Walker can’t wait to Meet the Light of her Life

click photo for more information
It’s a Girl! LeToya Luckett-Walker can’t wait to Meet the Light of her Life
Singer and actress LeToya Luckett-Walker has revealed that she and her husband Tommicus Walker are expecting a baby girl! The couple made the announcement earlier on in the year, that they were pregnant, enlisting the help of Madison, Tommicus’ daughter. LeToya shared the exciting news on her Instagram page with a photo of herself holding pink balloons […]
0
5

‘I am completely healed’ – Maureen Chukwujekwu narrates Harrowing Domestic Accident

click photo for more information
‘I am completely healed’ – Maureen Chukwujekwu narrates Harrowing Domestic Accident
Fashion designer Maureen who is married to Nollywood actor Blossom Chukwujekwu, took to her Instagram page last night to narrate a domestic accident that took place in her home a few weeks ago. According to her, about three weeks ago her life flashed before her eyes when she accidentally poured hot water all over her body. […]
0
3

BN TV: Watch Nonso Bassey perform ‘411’ on a New Episode of Ndani Sessions

click photo for more information
BN TV: Watch Nonso Bassey perform ‘411’ on a New Episode of Ndani Sessions
On this episode of Ndani Sessions, Nonso Bassey does a rendition of his popular single, 411. Watch it here: The post BN TV: Watch Nonso Bassey perform ‘411’ on a New Episode of Ndani Sessions appeared first on BellaNaija – Nigeria breaking & top news to the World 24/7. Read Today. Related
0
4

Explosion in Crimea college kills 13

click photo for more information
Explosion in Crimea college kills 13
About 50 people are also feared injured in the explosion. The post Explosion in Crimea college kills 13 appeared first on Premium Times Nigeria. Related
0
5

National Judicial Council speaks on corruption allegation against Supreme Court nominee

click photo for more information
National Judicial Council speaks on corruption allegation against Supreme Court nominee
The court says the judge had been probed. The post National Judicial Council speaks on corruption allegation against Supreme Court nominee appeared first on Premium Times Nigeria. Related
0
8

Gunmen kill two mobile policemen, civilian in Kaduna

click photo for more information
Gunmen kill two mobile policemen, civilian in Kaduna
Residents suspect the attackers were armed robbers. The post Gunmen kill two mobile policemen, civilian in Kaduna appeared first on Premium Times Nigeria. Related
0
6

Leo Dasilva replies troll who called him ‘Ceec’s houseboy’

click photo for more information
Leo Dasilva replies troll who called him ‘Ceec’s houseboy’
Leo Dasilva has taken to his instagram to reply a troll who tagged him Ceec’s houseboy. The troll hailed Ceec at first and then decided to troll on Leo, he wrote; “Queen Leo, the house boy of King Ceec, Thumbs up”. The act of mockery did not in anyway make Leo angry as he replied […]
0
6

How Oshiomhole Will Cause Buhari’s Defeat In 2019 – APC Chieftain tells Nigerians

click photo for more information
How Oshiomhole Will Cause Buhari’s Defeat In 2019 – APC Chieftain tells Nigerians
Former APC Presidential Aspirant, Dr. SKC Ogbonnia, has called for the removal of the National Chairman of the ruling All Progressives Congress, APC, Adams Oshiomhole, adding that he could cause the President to lose the 2019 elections. In a statement made available to PoliticsNGR, Ogbonnia said: “The calls for the removal of the national chairman […]
0
6

My encounter with a woman in traffic who sent millions to my mum – Small Doctor shares emotional story

click photo for more information
My encounter with a woman in traffic who sent millions to my mum – Small Doctor shares emotional story
Popular Nigerian singer, Temitope Adekunle, widely known as Small Doctor, has taken to his Instagram page to share an emotional story as he counted his many blessings, while sending big appreciation to a Samaritan woman who touched his life at first meeting. Small Doctor said that it all happened when he embarked on a road […]
0
5

Van Vicker showers wife with loving words on their 15th wedding Anniversary

click photo for more information
Van Vicker showers wife with loving words on their 15th wedding Anniversary
One of the most celebrated Ghanaian actors and movie producer, Van Vicker has taken some time to celebrate his wife on their 15th wedding anniversary. The actor posted a picture of both of them on his Instagram page, and attributed peace in his marriage to “being afraid of his wife.” He stated that fee if […]
0
5

2019 presidency: 40% of cabinet will be women and youths – Atiku

click photo for more information
2019 presidency: 40% of cabinet will be women and youths – Atiku
  Presidential candidate of the Peoples Demoratic Party(PDP), Atiku Abubakar in hope of winning the 2019 presidential election, has said his policy document for Nigeria, is ready. According to the former vice president, while speaking via Twitter on Wednesday, 40 percent of his cabinet will include youths and women as this is the only way to […]
0
6

2019: Persons with Disabilities want greater inclusion in Electoral Process

click photo for more information
2019: Persons with Disabilities want greater inclusion in Electoral Process
Some Persons With Disabilities PWDs in Nigeria have lamented that they would not be able to vote in the 2019 general elections due to their inability to partake in the recently concluded nationwide Continuous Voter Registration CVR. Continue reading 2019: Persons with Disabilities want greater inclusion in Electoral Process at Vanguard News. Related
0
6
load more posts