Why Aren't Women Leading High-Tech Start-ups?

In 2004, my partners and I unveiled a video news and information website for small business and people thought we were crazy. "Video on the Internet?" was what we regularly heard. But that wasn't the only challenge. There were very few technology companies led by a woman and as a result, no one thought we'd succeed.

Well, succeed we did. But the experience caused me to question why so few women are leading technology companies.

Two years ago, I was among 10 presenters at the SIIA Summit (Software Information Industry Association) representing what the organization determined to be groundbreaking technology organizations. According to Ed Keating, Vice President of SIIA's Content Division, "The 10 firms selected to participate in this year's SIIA Previews represent creativity, broad-stroke excellence, and strong business acumen, and illustrate why the coming months and years hold much promise for continued industry-wide success."

I was one of only two women presenting that day, so I asked the obvious question, "Where are the women?"

First, let me say the lack of women-led companies selected to present was no fault of the SIIA. In fact, I learned very few women applied to be considered for this event and that had been the case in previous years as well. So, why not?

Even though women are starting businesses at twice the rate of men, there aren't many who launch high-tech ventures. According to research from Stanford GSB Project on Emerging Businesses, fewer than 10% of high-tech start-ups have a female CEO, Founder or President. Technology driven start-ups continue to be largely male dominated.

Why? The answer is complex. I'll share some thoughts, and hopefully those of you reading this blog will weigh in on the subject.

First, the low number of women founders in the high-tech industry could be related the lack of access to equity capital. Women-owned startup companies tend to start with less capital than their male-owned counterparts, according to a study released by the Ewing Marion Kauffman Foundation. Furthermore, only a small percentage of women-owned firms attract venture capital, yet technology driven companies typically need millions. Generally speaking, women aren't comfortable raising venture capital in part because of a lack of education regarding the process. Plus, the venture capital world continues to be male dominated.

One of the first venture capital forums I participated in, I was the only woman. And when I was introduced to one of the male organizers, he said, "Nice to meet. We hoped you'd be attractive, and you are." Now would he say that to a man? Would it even be a consideration?

Secondly, there is a tremendous amount of risk associated with high-tech start-ups. Are women in general not as comfortable with that level of risk? There are many who would argue that's precisely the case. Personally, I don't believe this rationale paints an accurate picture of female entrepreneurs. There are inspiring stories of women who have taken great risks and built multi-million dollar, global enterprises.

Finally, let's talk about the gender socialization. Are we still intentionally or unintentionally steering young women away from science, technology and math and into softer subject areas? I presented that question in a staff meeting recently and the women on our team nodded in agreement. Isn't it time we change the social messages we communicate to young women?

What do you think?

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