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by jlees 4538 days ago
Lemma: Women-led companies are desirable.

Vivek Wadhwa is doing a bunch of research into the data. I don't have his report at my fingertips but fundamentally, not investing in women is not a rational move. Here's the media headline version:

"Women-led private technology companies are more capital-efficient, achieve 35 percent higher return on investment, and, when venture-backed, bring in 12 percent higher revenue than male-owned tech companies."

Source: http://www.businessweek.com/articles/2013-02-20/women-who-ru...

Conclusion: Women earn over 50% of degrees but start fewer than 3% of companies. If we accept that women-led companies do well, as per the data -- and yes, there are certainly caveats -- then this gap clearly shows there is a problem, in terms of inefficient use of investment if nothing else.

2 comments

Hypothetically, that could be completely accounted for by women being more realistic of their chances of success at starting a company. So those who wouldn't have succeeded never bothered in the first place, skewing those statistics.
Not all women-led companies were started by women, too.
Correlation is not causation.
In this instance, the outcome is still desirable. If isolating fairly across all variables (and there are several at play!) means that higher company performance is tightly correlated to having a diverse leadership team, it's a competitive benefit to take advantage of that correlation. I doubt we could ever truly prove causation in this instance.