Trending Market Forces: Women in Tech
Women barely represent a third of the workforce in tech companies, but VC Kelsey Lynn Skinner shows the seeds are planted for an ecosystem shift.
2014 has been quite an turbulent year for women in tech. Industry behemoths Google, Facebook and Apple all published disappointing figures on employee diversity, and we heard mortifying stories of sexist behavior at hot start-ups like Tinder and VC firms like CMEA, both of which led to lawsuits. While I have seen subtle (and occasionally blatant) discrimination during my decade and a half in Silicon Valley and the London tech scene, I am nevertheless optimistic. Why? Partly because these stories are signs of greater awareness, but mostly because I see key trends that point to a better future.
As a venture investor, I’m constantly observing markets for emerging trends and early-stage signals that indicate a coming shift; and several trends around women in tech have caught my attention.
A successful start-up scene thrives on three key elements: skills, money, and ecosystem. These three elements feed each other in a virtuous circle and as women’s participation increases in one, it improves the others and strengthens the scene. Women in tech are making milestone advances in all these areas, creating positive changes that are setting the tone for the future.
The Skills: Technical knowledge is the bedrock for any tech company. It drives product development and, combined with engineers’ creativity, enables innovation. Traditionally, the technical skill set has been dominated by men, resulting in a heavily male-oriented atmosphere, typified by the brogrammer culture that has come to be associated with the computer sciences. Environments like these can be off-putting to girls and women–even those with a genuine interest in the field (despite the fact that women once dominated computer science!)
The industry has now put in place myriad efforts to combat this trend by providing targeted programmes for girls and minorities to develop technical skills. These range from Girls who Code at the secondary school level, to Google offering free coding courses to women and minorities. Importantly, universities are beginning to achieve parity in their introductory Computer Science courses, with Stanford reaching that milestone in 2012 and Berkeley reversing the male-dominated ratio (ever so slightly) earlier this year, indicating key trends that I hope will spread across the tech world.
The Money: Start-up businesses need money and their access to capital can spell success or failure. Venture capital has been dominated by a few (largely white male) firms over the past several decades, and most deals have been sourced through personal connections and the “old boy” network. If women founders only receive a small portion of venture capital dollars (around 13% of VC funding, according to WIRED) and therefore achieve limited success, these biases become self-perpetuating as successful entrepreneurs often become angel investors and then fund the next generation.
The internet has been delivering on its old promise of democratisation through platforms such as AngelList, Kickstarter, and Indiegogo. These crowdfunding websites are an alternative to investor-led early-stage funding rounds where both female and male entrepreneurs are given equal standing. And it works: Indiegogo has reported that 47% of successful campaigns on its website have female founders (as opposed to 15% of venture-backed businesses). On Kickstarter, female entrepreneurs fare better at raising money than their male counterparts by roughly a 2:1 ratio.
These trends have yet to become evident in the traditional VC industry though I believe it too is becoming more aware and receptive to entrepreneurs of all backgrounds and demographics, led by firms like Imperial Innovations. At Imperial Innovations, we have women as founders and in C-level positions in several of our portfolio companies, across all sectors, from Prof Charlotte Williams (founder, Econic) to Martina King (CEO, FeatureSpace) to Dr Ann Hayes (Chairman, PsychologyOnline). These women, and many others in our portfolio, not only have access to capital but also serve as role models for future founders, leading to the third element.
The Ecosystem: The business case for diversity is strong. Not only does research show that diverse leadership leads companies to out-innovate and out-perform, but it also avoids the flip problem: if someone is in a homogeneous environment where they feel they do not fit in, they are less likely to succeed and more likely to leave. I think this is best summed up by Theresia Gouw when she was asked about the role gender played in her decision to co-found Aspect Ventures:
“By being more visible and showing we can do this, maybe women will become more confident to be entrepreneurs and investors themselves.”
Not only do women in leadership provide a vision for young girls to aspire to, their leadership is capable of changing the atmosphere within the industry, as well as its conventions.
Within the wider London and VC spheres I’m seeing positive changes that altogether point to a trend. With the new academic year, Imperial College London welcomed its first female President, Prof Alice Gast, as well as the inaugural run of the Althea Prize, an entrepreneurship programme geared specifically for female scientists. Some of the biggest investments in London in the past year have been on companies founded by women like Hassle and Move Guides. In November, Imperial and the Guardian hosted a panel discussion on Women in Tech, moderated by the Guardian’s Harriet Minter, as part of the Silicon Valley Comes to the UK event series championed by Janet Coyle and Sherry Coutu (great tech executives and role model themselves). The event saw prominent figures in the tech scene share insight and advice on how to scale a business, as well as challenges they faced as women in a male-dominated field.
Discrimination remains. Women in tech may occasionally receive snide comments and subtle hints for the near-term but these underlying market trends, combined with increased awareness, point to a positive future. As referenced in a recent keynote by Helena Morrissey, CEO of Newton Asset Management and Founder of 30% Club, women on boards is finally being viewed appropriately as a business issue, not a women’s issue, leading to bigger systemic shifts. With significant milestones in the skills, the money and the ecosystem, now is the time to bet on women in tech.
Kelsey Lynn Skinner in a venture investor with Imperial Innovations Group plc, a £600m market cap technology commercialisation company in London. She joined Innovations in 2012 after 12 years in Silicon Valley with Firelake Capital, Google and as staff / eternal student at Stanford University. She shares insights on innovation and other random thoughts at @kelsey_innovate
