In 2010, only 3.6% of venture investments were made into companies that were founded by all-women teams. Those investments were about half the size of the average venture deal, so all-women teams only received 1.8% of total capital invested. Both of those numbers have increased, but not by much. In 2019, 6.9% of deals and 2.9% of invested capital went to all-women founding teams. Clearly, the venture industry has a long way to go.
VC firms are under pressure to improve diversity internally and in their portfolios, in order to preserve their reputations, to ensure continued returns, and because it’s the right thing to do. Diversity takes many forms, but in the wake of #MeToo many investors and advocates are focused on improving venture’s gender balance.