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 the 2017 version and the 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 2017 through December of 2018. For classification purposes, early stage is pre-seed, seed, and angel rounds. Venture rounds are considered anything that includes Series A, Series B, etc.
Let’s look at how this has changed over time:
What happens when we run the same analysis for women-only founding teams in NYC:
Let’s look at how this has changed over time:
Let’s look at how solo women founders fare:
Quick Analysis:
A quick review indicates that there has been marked and definite improvement in the number of women-founded and mixed gender teams that are raising funding in New York and an improvement in dollar amounts raised for these teams since our initial report in 2014 across all the funding classifications.
The share of total funding deals in New York for mixed gender teams has increased from 16.67% to 22.79%, marking an increase of 36.74% since 2014. This trend has largely been influenced by the 271.88% increase (from 32 to 119 deals) in the number of early-stage deals for mixed gender teams, which signifies that 28.61% of early-stage deals have at least one female founder in NYC over the last 18 months, from an abysmal 6.46% in 2014. This increase for mixed gender teams is outpacing the national market.
Similarly, for women only founded teams, the share of total funding deals has also gradually increased from 6.25% to 8.72%, an increase of close to 40%. Women only teams have been able to scale and since 2014, the number of women-only funded team has increased 78.57% (from 42 to 75) across all funding rounds with an impressive 200% increase on the venture side with 30 women only founded teams raising venture funding, up from only 10 in the 2014 period.
Differences in funding amounts continue to narrow for the most part for both early stage and venture rounds. Notable differences do exist though as a result of a number of very large rounds founded by all-male teams that have slightly skewed the data.
Quick Findings:
Aggregate Funding in NYC
The average startup financing in NYC is $13.5M but $9.2M if there is a female founder on the team Tweet This
A funding round in NYC with a female on the founding team is 31.6% less on average Tweet This
22.79% of all startup fundings in NYC had a female founder on the team up from 16.67% in 2014 Tweet This
The number of startup fundings for mixed gender teams in NYC has increased 75% from 2014 to now, increasing from 196 from 112 Tweet This
8.72% 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 27% less on average Tweet This
Early Stage (Early Stage and Seed) Funding in NYC
The average early-stage financing in NYC is $2.05M and $2.2M is there a female founder on the team Tweet This
An early stage round in NYC with a female founder is 7% higher on average Tweet This
28.61 % of all early-stage fundings in NYC had a female founder on the team up from only 6.46% in 2014 Tweet This
The number of early stage/seed fundings for mixed gender teams in New York has increased 272% from 2014 to now, increasing to 119 from 32 Tweet This
10.82% 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 19% more on average Tweet This
Venture Rounds (Series A, B, C, etc.)
The average venture financing in NYC is $24.2M but $19.7M is there a female founder on the team Tweet This
A venture round in NYC with a female founder is 18.6% less on average Tweet This
17.79% of all venture fundings in NYC had a female founder on the team from 5.68% in 2014 Tweet This
The number of venture fundings for mixed gender teams in New York has increased 690% from 2014 to now, increasing to 79 from 10 Tweet This
6.76% 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 13.39% less on average Tweet This
The team at AlleyWatch believes it’s important to have an inclusive discussion around the challenges facing women in tech along with highlighting the work of the female entrepreneurs that have made NYC one of the best places for women in tech according to some recent studies. That’s why we are running this series that showcases women in tech in New York.
If you are a female founder in NYC working in tech and interested in participating in the series please visit this link or click on the image above.
Please feel free to pass this on to any women in NYC that you feel should be considered for the series. Thank you.
