Economy

Where Women Startup Founders Are Gaining Ground

The share of VC-backed startups with women founders has grown dramatically, but Silicon Valley lags behind other hubs.
Anne Wojcicki, CEO and co-founder of 23andMe, speaks at the WSJD Live conference in Laguna Beach, California, in 2016.Mike Blake/Reuters

Despite recent progress, the baseline facts about women-founded startups remain startling. Just 2.5 percent of all venture-capital-backed startups have an all-female founding team. Only 9 percent of the venture capitalists investing in tech startups are women. And even today, only slightly more than one-fifth of all American VC investment goes to startups where at least one of the founders is a woman.

To put this in context, in the United States, women make up more than half (52 percent) of the highly skilled creative class; comprise more than one-third (36 percent) of business owners; and make up 30 percent of all high-tech employment.