Groundbreaking accelerator 500 Startups recently announced the 500 Women Fund, an AngelList syndicate dedicated to funding startups led by women in entrepreneurship. 500 founder Dave McClure commented to PandoDaily, “Smart women entrepreneurs are not getting the access to capital they could.”
An estimated 25 to 30 percent of teams currently funded by 500 Startups include at least one female founder, double the US average of 13%. (500 also invests substantially in international teams, bolstered by its Geeks on a Plane initiative.)
The 500 Women syndicate is a new program designed to further encourage women to become founders, and to support them with a deep network of investors, mentors, and peers.
Meanwhile, fellow incubator YCombinator prepares its first conference focused exclusively on female founders. The incubator turned an about-face in December 2013, after comments from an interview with YCom founder Paul Graham went viral. During the interview, Graham remarked:
I’m almost certain that we don’t discriminate against female founders because I would know from looking at the ones we missed. You could argue that we should do more, that we should encourage women to start startups.
Even for an industry structurally dominated by male-biased investment patterns, YCombinator stands out from the crowd: over its eight-year history, 96% of YCombinator founders have been men. It appears, however, that the tides of patriarchy may be waning. Commented PG (as he’s often known) in a subsequent essay:
More thoughtful people were willing to concede YC wasn’t biased against women, but thought we should be actively working to increase the number of female founders. As one put it, instead of being a gatekeeper, we should be a gateway…
We fund more female founders than VCs do, and we help them to overcome the bias they’ll encounter among other investors. In the current YC batch, 16 out of 68 companies, or 24%, have female founders.
I realize though that with female founders, efforts at our stage are not enough.
Pivoting from a previously laissez-faires attitude towards the gender gap, YCombinator appears ready to assume a proactive role in catalyzing social change. Complimenting his two provocative essays on the subject, Paul Graham’s wife and partner, Jessica Livingston, will soon co-host the Female Founders Conference.
Taking place March 1 at the Computer History Museum, the conference will feature an impressive series of talks from accomplished women in technology, including industry leaders Diane Green (Founder, VMWare), Julia Hartz (Co-Founder, EventBrite) and Jessica Mah (Co-Founder, InDinero).
But is it enough?
All these efforts, while commendable, overlook the growing gender gap afflicting the tech field as a whole. In 1984, for instance, 37.1% of US computer science degrees went to women; today, the same figure is 12%, less than a third of the rate three decades ago.
Women face similar discrimination at all levels of organizational leadership — only 19% of American CEOs are women, for instance — leading to the widespread, if controversial, notion of a “pink ghetto.”
Reasons for such a participatory decline may vary, but the scarcity of role models — women in technology with name recognition approaching Bill Gates, Steve Jobs, or, more contemporarily, Mark Zuckerberg — may likely play an inhibiting role in encouraging more women to enter the field.
Efforts by YCombinator and 500Startups may play only a minor role in reversing a long-standing sociotechnical trend, but even the longest journey begins with a single step — and in this case, it’s a step in the right direction.