Where Are the Women Tech Founders?

Despite making up 50.46% of the population and leading some of the most significant accomplishments in the world for transformative technological innovations, women still face unequal treatment and limited access to resources when it comes to founding a tech startup, namely, venture capital funding.

Research has repeatedly shown that women significantly contribute to technological innovation, yet they represent only 15% of founders in the tech ecosystem. As a woman who has served as a marketing executive, business advisor, educator, and investor in the tech industry for over 20 years, I have witnessed firsthand the negative impacts systemic inequality and gender biases have on female founders. That being said, I am also optimistic about the future.

Today, women founders are reshaping the landscape of C-level management through their leadership, guiding the next generation of female tech pioneers, and challenging the societal norms that have defined a women’s “place” in tech for far too long.

Access to funding is critical

One of the primary contributors to the gender gap in tech is the lack of venture capital (VC) funding for women-owned businesses. As many female founders know from experience, securing VC funding is an uphill battle, particularly in a male-dominated industry. However, funding is the key to success. While still abysmally small, a growing number of incubators, accelerators, and VCs have started to support traditionally underrepresented groups, including women and minorities in the tech industry.

A 2023 study by PitchBook found that women tech founders received only 2.1% of VC funding in 2022, yet, research suggests female-led tech companies are more capital-efficient, achieving a 35% ROI. In fact, venture-supported companies make 12% more revenue than male-owned tech firms. These findings confirm what many women founders experience at one point or another: the gender gap in tech is not due to a woman’s ability to lead, generate capital, or increase ROI; it is due to biases that have existed for centuries.

A look at the Bay Area

While we cannot change the bias that is sewn into the seams of our society overnight, we can take steps to level the playing field. One promising trend is the increasing number of women joining VC firms, leading to more funding for female-founded tech companies. San Francisco has emerged as a hub for female-founded companies, boasting the highest VC funding rate for women in the country at 17.1%.

Unsurprisingly, high VC funding rates in San Francisco have led to a robust network committed to uplifting and advocating for their fellow women tech founders. This growing community presents a significant opportunity for the advancement of female founders as efforts to address the gender gap in business gain momentum in the tech industry, Bay Area, and beyond.

Seeds of transformation

One example of an organization that recognized the gender disparity in access to resources for women tech founders and acted on it is The Founders Network. FN is a group of 650 tech startup entrepreneurs that recently created the fnSisterhood. FnSisterhood seeks to create a community that fosters an environment for female tech founders to collaborate and support like-minded women on their entrepreneurial journey. Their slogan, “We champion each other to win,” reflects the unity driving transformative change.

There are other easily accessible groups emerging on platforms such as LinkedIn that have served as an essential link in connecting women tech founders globally. The Women In Tech Network and SF Women In Tech are two LinkedIn networks that unite women tech founders and women working in the technology industry. Networks like these act as watering holes for sharing, trouble-shooting, and inspiration and can act as catalysts, uniting and amplifying the voices of women whose presence in senior and executive leadership roles has been missing for too long.

A seat at the table

Throughout my career, being one of a few women or the only woman in a room full of male executives was not uncommon. Adjusting to this dynamic was challenging, as I realized that while my male counterparts freely expressed their thoughts, my voice was often dismissed or labeled as overly assertive. However, I firmly believed that my contributions held equal value. As a result, I used my voice, advocated for my perspectives, and claimed my rightful place at the table.

I understand that being assertive can pose a challenge, but knowing how to do so effectively will impact the future of your career. Speaking out allows you to feel a sense of belonging and empowerment rather than regret for not expressing your opinions.

Gender bias within the tech industry persists when we adhere to society’s implicit expectations of compliance. Whether you support your female colleagues or take action yourself, always remember that your ideas hold as much value as your associates.

As you embark on your entrepreneurial journey, seek out a network of like-minded women who are ambitious and unafraid to provide constructive feedback to people in power. Find a mentor who will support you along the way. Whether within a larger organization or a smaller group, strive to bridge the gap and change the perception that the tech industry is a man’s arena.

Change on the horizon

Women encounter many challenges as they navigate the stages of founding and growing a successful tech startup. Anyone choosing this path knows it will be a challenging road to success. There will be many highs and lows, barriers to overcome, and challenges to meet. Remember, you are not alone.

Many women are by your side, fighting the good fight, some through words, others through action. Never dim your light because choosing to be an entrepreneur puts you in the arena. You’ll inspire younger generations to emulate what you’re doing fearlessly, driving transformative change.

Leaders such as yourself are paving the way for women tech founders and demonstrating that they possess a skill set equal to, if not surpassing their male counterparts. In the words of Sheryl Sandberg, former COO at Meta, “The word ‘female,’ when inserted in front of something, is always with a note of surprise. Female COO, female pilot, female surgeon — as if the gender implies surprise … One day, there won’t be female leaders. There will just be leaders.”