According to a recent survey with the participation of the Vienna University of Economics and Business, the low share of female executives in the IT startup sector is “homegrown”, ie it cannot be explained by factors such as education, experience or the quality of start-ups run by women. Rather, an existing gender inequality is self-reinforcing, as investors would turn to prototypical founding teams, the study said.
This effect is particularly pronounced among technology start-ups, as these are often very uncertain business models. The idea behind it: Potential investors would try to offset the greater uncertainty by looking for founding teams that match the existing prototype and that it is “young, tech-savvy, white and masculine,” as stated in a WU press release called .
There is also a dilemma: to arouse the interest of investors, the founding teams must stand out from the crowd while at the same time staying close to the presentation of the prototype. According to the research, this is especially difficult for start-ups with a high proportion of women.
Study author Sonja Sperber of WU and study author Christian Linder of SKEMA Business School Paris looked at 107 young companies operating in the field of blockchain technology – a business area that is considered particularly insecure. Startups that are purely or predominantly male-led find it easier to attract investor funds than management teams with a higher proportion of women. Statistically, however, this cannot be explained by the education and experience of female managers or the quality of their start-ups.
No general reservations
However, the research does not show that investors have fundamental concerns about women-run start-ups: if young companies take the first hurdle and new rounds of financing come, there is no longer a gender effect.
To increase the share of women in the IT start-up scene, it is therefore not enough to invest more in the education and promotion of women, the authors of the study conclude. Rather, niches should be found in which there are more women and where the prototype is not yet so solid. By emphasizing and supporting these more, one can permanently change the prototypical idea.
Source: Krone
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
