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The Truth Behind Women and Funding in NYC: 2017 Edition

 

TRUTH BETWEEN FUNDING WOMEN updated.003

Today, I take an updated look at the numbers behind female-founded companies and their respective place in the greater entrepreneurial ecosystem in New York and compare the progress from my original piece on this topic from the Fall of 2014.

Relying on some data from our friends at CrunchBase, coupled with some internet research, I have taken a quantitative perspective on the how the presence of a woman on a founding team affects startup funding across various funding stages in New York.

The analysis covers 18 months stemming from June 2015 through December of 2016.

TRUTH BETWEEN FUNDING WOMEN updated.005 

What happens when we run the same analysis for women-only founding teams in NYC:

TRUTH BETWEEN FUNDING WOMEN updated.006

Quick Analysis:

A quick review from my previous piece indicates that there has been marked and definite improvement in the differences with mixed-gender versus all teams since we ran the initial review in 2014 across all the funding classifications.  For teams with a woman on the founding team, the difference decreased from -23.31% to -6.59% and there was zero difference in median in the most recent analysis for all funding rounds Also to note is an impressive improvement in venture rounds where the gap shrunk nearly in half.    At the early stage (seed and angel) gender mixed founding teams continue to raise higher amounts on average.

However, for all female-founded teams there has not been a similar story.  There is a huge discrepancy that has increased in venture deals where the discrepancy went from -12.98% to over -36%.  This has had a large influence on the all female founded rounds as the average funding amount for early stage deals for all female founded teams was higher and increased from 2014.  When examining the median, the discrepancies are not as large but they are there for female-founded teams.  A number of very large rounds founded by all male teams over the past 18 months have skewed the data slightly.

It’s concerning that there has been growth in the number of total rounds across these stages but the share of female-founded and mixed gender-founded companies has not increased and in fact fallen.  Of particular concern is that the raw number of deals for early stage female and mixed-gender founded companies has decreased which will have ramifications for future venture deals as these companies mature and scale.

Quick Findings:

Aggregate Funding in NYC

The average startup financing in NYC is $8.9M but $8.4M if there is a female founder on the team Tweet this
A funding round in NYC with a female on the founding team is 5.8% less on average Tweet this
14.17% of all startup fundings in NYC had a female founder on the team Tweet this
Female founders accounted for 154 out of 1087 NYC startup financings Tweet this
4.77% of the # of total funding deals went to all female founding teams in NYC Tweet this
A funding round in NYC with an all female founding team is 17% less on average Tweet this

 

Early Stage (Early Stage and Seed) Funding in NYC
The average early stage financing in NYC is $1.3M but $1.4M is there a female founder on the team Tweet this
An early stage round in NYC with a female founder is 10.45% higher on average Tweet this
14.21% of all early stage fundings in NYC had a female founder on the team Tweet this
Female founders accounted for 77 out of 542 NYC early stage financings Tweet this
5.54% of early stage funding deals went to all female founding teams in NYC Tweet this
An early stage/seed round in NYC with an all female founding team is 13.59% more on average Tweet this

 

Venture Rounds (Series A, B, C, etc.)
The average venture financing in NYC is $16.5 but $11.1M is there a female founder on the team Tweet this
A venture round in NYC with a female founder is 6.79% less on average Tweet this
14.13% of all venture fundings in NYC had a female founder on the team Tweet this
Female founders accounted for 23 out of 545 NYC venture financings Tweet this
4.22% of the # of venture funding deals went to all female founding teams in NYC Tweet this
A venture round in NYC with an all female founding team is 6.79% less on average Tweet this

 


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About the author: Reza Chowdhury

Reza Chowdhury is the CEO and Founder of AlleyWatch, the largest media property focused on the NYC tech and entrepreneurial ecosystem. He is also the Founder of New York Startup Lab, a software development firm with a specific focus on early stage companies. Previously, Reza was involved with several entrepreneurial ventures and began his career as securities trader on Wall Street. Recognized as a global thought leader, Reza has been named one of the 100 most influential people in NYC Tech by TechWeek on multiple occasions and is a NYC Venture Fellow, a world-class, year-long fellowship program designed to help high-potential entrepreneurs scale their ventures. Reza routinely speaks on the global startup ecosystem and is an advisor to advisor to SD Asia and Dublin Globe, two organizations that are fostering the growth of local entrepreneurial ecosystems.

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