Archive for the ‘gender gap’ Category

The Gender Gap in Startups, Part 2: Compensation

Is there a Gender Salary Gap in private ventures? My previous post showed the percentages of men versus women in IT versus Life Sciences executive teams, across various VP-level and C-level positions. In this post, I focus on salary differences by gender, first describing the overall results using our full 2008 survey results, then delving into various subsets of the data. The regressions included data on 2,200 executives from almost 480 private IT and Life Sciences ventures. The regressions controlled for differences in the following factors: Positions — separate variables for each of 15 VP-level and C-level positions Company maturity — rounds of financing raised, number of employees Industry — IT vs. Life Sciences Geography — whether the venture is located in each of the two “hubs” of start-ups (California and Massachusetts) or not Executive backgrounds — founder versus non-founder status, years of prior work experience, years working in the venture, educational background (i.e., advanced degrees) Executive’s equity holdings — percentage of the venture’s equity held by the executive (Note: Where appropriate, some variables were log-transformed or square-root transformed.) The table below summarizes the gender-salary gaps that were statistically significant (p<.05) after controlling for the above factors. The sections that follow describe the results, followed by auxiliary results analyzing whether the gap is different if the CEO is a woman, and analyzing gender differences in equity holdings. In short, there is indeed a gender salary gap within private ventures, but that gap is greater in IT ventures than in Life Sciences ones, outside the “hubs” of California and Massachusetts, and in later-stage ventures. It is important to note that, compared to the 20-25% gender wage gap consistently found in studies of large companies, these gender gaps in private ventures are much smaller (less than 10%). Small, private ventures may indeed […]

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The Gender Gap in Startups, Part 1: Women in IT and Life Sciences Ventures

What are the actual percentages of women in startups? Do the numbers differ by industry, stage of venture, or position? And, are women and men paid differently in startups? On a regular basis, I read articles that refer to or lament the imbalance between men and women in startups. For instance, this Forbes article states that only 4.08% of venture funding in 2006 went to tech startups with female chief executives. But what is the actual percentage of women in these startups? Do imbalances exist more in some areas than in others? In this year’s CompStudy survey we added a gender question to our Executive Backgrounds section in both the IT and Life Sciences surveys. The resulting data include 2,202 C-level and VP-level executives from 459 private ventures (i.e., the average top-management team was comprised of 4.8 executives per venture). Of these ventures, two-thirds are IT and one-third are Life Sciences ventures. The percentage of women across all of these ventures was 12.9%. However, this differed significantly between IT and Life Sciences: IT was 10.7% women, Life Sciences 17.6%. I also examined the data by stage of venture, geography, and position. First, the chart below shows the differences by stage of the venture – in particular, between ventures that had raised 2 or fewer rounds of financing (i.e., earlier-stage ventures) and those that had raised more than 2 rounds (later-stage ventures). The percentage remains pretty steady in IT ventures across these stages of financing, but drops slightly in Life Sciences ventures. Geographically, 29.4% of the executives were from ventures with their headquarters in California and 16.8% were from Massachusetts-based ventures, giving us a total of 46.2% from these two “hubs” of venture activity. (No other state had more than 5.5% of the executives.) As shown in the chart below, in […]

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