Throughout the pandemic, the disproportionately adverse impact on women’s careers has received a great deal of attention. Fields heavily populated by women have experienced greater layoffs, with a McKinsey analysis showing women’s jobs 1.8 times more vulnerable than men’s. And the greater need for care work has often led to more women dropping out of the workforce.
Women-Led Startups Received Just 2.3% of VC Funding in 2020
In a year of uncertainty, VCs acted like funding female founders was risky — but the real risk is in leaving them behind.
February 25, 2021
Nick Veasey/Science Photo Library/Getty Images
Summary.
The percentage of VC deals that went to female-led startups declined in 2020. This development, which comes as women are leaving the U.S. workforce in droves, is especially bad news. Research shows many positive things occur when VCs choose to fund women, and investors must take conscious steps to increase funding for this underrepresented group of entrepreneurs.
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Diversity, Inclusion, and Belonging Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Diversity, Inclusion, and Belonging. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
How to build a better, more just workplace.