30 Insights I’ve Learned About Gender Equity in Venture Capital

From Allyship to Social Capital to Data and Politics, here are 30 insights I’ve learned from my years spent working in venture capital and entrepreneurship.

First, the Big Picture

• You might have heard: Companies founded solely by women receive less than 3% of venture capital dollars. Between 2021 and 2022, the percentage actually went down to a new low of 1.9%. Yet, despite the unwavering glass ceiling of 3%, progress is being made for women in VC. Evidence of change is everywhere if you open your eyes, especially compared to 10 years ago.
• But… we have a long way to go. Many populations still exist that remain underserved in entrepreneurship and VC, such as Black women and other women of color, LGBTQ, people with disabilities, and immigrants. The list goes on.
• The towering silos built across gender advocates in venture capital are still the elephants in the room. Seemingly well-intentioned stakeholders are yet to form the necessary alliances and partnerships at scale that can launch a true global movement (with some exceptions). Infighting, organizational disfunction, inflated ego’s, and competition over audience share and funding are still barriers in the gender equity space. I’ve witnessed this firsthand and it can be heartbreaking.
• We don’t talk enough about the many alternative non-investment pathways there are to lead a professional career in the VC industry. (I’m looking at you #SoYouWantToWorkInPlatform led by Allie Mullen) Not everyone walks the associate-to-principal-to-partner route, nor wants to. And that’s perfectly ok. New roles will be created in the future that don’t exist now. Find where you fit and go for it. If it doesn’t exist, create it.
• Speaking of pathways into venture capital, I still believe there is a massive missed opportunity in promoting crowdfunding to the general public. It’s a complete myth that only HNWI (high-net-worth individuals) or VC firms can make meaningful investments and actively express their values in a financial context. I first started building my personal portfolio on Republic with small bets on women-founded companies like Attn: Grace, MINNA, and GoBe. Sure, my miniscule investments in those companies aren’t going to keep the lights on, but I’m still able to participate at a realistic level that expresses my values and beliefs in those founders and the products they are building.

On Allyship

• It’s hard to overestimate the value of male allies and general allyship for any overlooked population in entrepreneurship and venture capital. Listen up guys, your voices and decisions matter.
• Having a seat at the table isn’t the same as having a voice at the table. Also, having a voice at the table doesn’t always mean all voices are treated equally.
• This may sound harsh, but if you work in VC (regardless of your gender identity), you’re either an advocate for greater gender equity or you’re dead weight. Just as with anti-racism, there is no middle ground. Every voice counts. Every action matters. The issue of gender inequality in VC is simply impossible to ignore once you’ve seen it. Where do you stand?
• Actions really do speak louder than words. If you claim to be an ally for women in VC, show, don’t just tell. If you have check writing capabilities, your allyship should show up in your investment portfolio and within your LP base. Again, if you’re not in a serious investor position, consider all of the consumer-facing crowdfunding options available.

If you have check writing capabilities, your allyship should show up in your investment portfolio and within your LP base.

• If you’re an investor who passes on investing in a woman-founded company due to portfolio conflict, fund thesis misalignment, or any non-performative reason, don’t just pass. Pay it forward and refer them to others in your network who might be more aligned. Your “no” doesn’t have to be the end of the story.
• Anyone can be an ally. You don’t have to be a male VC to show allyship for women. Women in VC need other women in VC as advocates and sponsors. This is a team sport and everyone counts.
• Let’s say you’re a male VC asked to sit on a panel or judge a startup pitch competition. Insist that the panel also includes at least one woman. Just say no to all-male panels (aka manels), conference sessions, and pitch competitions. Enough already.

From Social Capital to Venture Capital

• Just as startup venture funding happens one check at a time, social capital is built one introduction at a time. Don’t devalue the impact one introduction can have on someone’s trajectory. Make it a regular part of every conversation to offer at least one introduction. Remember, you were once the person needing introductions.
• Myth: You have to be well-connected to offer social capital to someone. Nice try, but not even close to being true. You don’t have to be well-connected to provide social capital to someone else. Brick by brick, dreams are built. Be a brick for someone else’s dream.
• It’s true, reputation is everything in VC. Unfortunately, we are still a society that places a high value on social status, popularity, and overused signaling methods that don’t necessarily translate to shared values. Be the investor that delivers far more value than the check you write, even if that check is comparatively small to others on the cap table. You won’t be forgotten.

Be the investor that delivers far more value than the check you write, even if that check is comparatively small to others on the cap table.

• Surprising as it may seem, pay (and investment carry) for women in VC is nowhere near equitable. Just because an investment firm has a woman partner doesn’t mean they are being equitable towards that partner.
• Striving toward greater equity for women and non-binary folks in VC benefits everyone. Contrary to popular belief, VC isn’t a winner-take-all zero sum game. Generously share opportunities when you see them.
• Speaking of opportunities, the opportunity cost of male VCs not educating themselves on women’s consumer products and the companies that create them are immense. We’re talking trillions of dollars immense. What are you waiting for?
• As a VC, if you find yourself saying you don’t see enough women-founded companies in your deal flow, it’s time to face the fact your network is too shallow and it’s time to grow.
• Be empathetic (vs sympathetic) to women in VC who have fought for many years to get to where they are. They have seen a lot and earned their stripes as well as respect from their peers. It’s no surprise that many veteran women investors are highly protective of their progress.

Data & Statistics, not so simple

• The jury is still out on whether having more women in check writing positions results in an increase of women-founded teams getting more funding. I know it goes against conventional thought that “women invest in women,” but it’s just not that simple. (I willingly stand to be corrected when the data shows up.) The lesson: Be willing to question your assumptions when there isn’t enough data.
• There isn’t nearly enough emphasis on the need for quality data related to regional capital flow, cap table composition, career pathways and promotions in VC, emerging fund managers, etc. It’s far too easy to poke holes in the large data sets we’ve come to rely on. Become an advocate for more transparency around data sharing. Even better, partner with an ally and create a new industry standard of data transparency.
• For every story of bias and harassment you hear from the VC industry, assume more stories go untold than told. It’s impossible to overstate the challenges women face as both funders and founders. It’s a jungle out there.
• Helping women founders is as important as helping women investors. The world of entrepreneurship and venture funding are deeply interconnected, even if only 0.05% of startups raise venture capital.
• It’s true, there is ample data showing women-founded companies and those who have greater gender equity across leadership roles perform much better than more homogenous male-only companies. On the flip side, this expectation also places a tremendous amount of pressure on women founders and industry leaders to outperform in their industry. We don’t talk enough about this.

On Family

• Many women in VC are also mothers. I know you’ve heard it, but I’ll say it again: Being a mother is a full-time job, and then some. There is no question, being a mother and an active VC is one of the hardest things anyone can do in their career. The societal expectations toward mothers in VC are not equal to those faced by fathers in VC, and we don’t give nearly enough credit for how difficult this can be.

The societal expectations toward mothers in VC are not equal to those faced by fathers in VC.

• Allyship can start long before boys become men. Gender stereotypes begin to form as early as age two. This should be a resounding call to parents that you matter tremendously to the world your children will inherit (and ultimately contribute to).
• The barriers for women entering VC begin in grade school and are reinforced in the home. It matters greatly how young girls are introduced to money management and financial concepts. Case in point: the Junior Venture Capitalist Program held by the Women Founders Network is absolutely incredible. We need to see more of this type of programming.

Politics

• Creating more opportunities for women in VC is political. Yup, I went there. One place to start is with maternal benefits. The other is wage equity.

Vote your values and open your eyes to the interconnectedness of broader policy decisions. An absent vote is a vote against women.

• Speaking of politics, one of the most surprising discoveries I’ve made advocating for gender equity in VC is the amount of gatekeeping happening by well-known nonprofit organizations, syndicates, large funds, veteran investors, and even LPs. Be leery about making assumptions that all actors are operating with the same intent. At the same time, don’t be discouraged when you see or experience it.

Final thought: Keep forging ahead to find your tribe.