Women are climbing the ranks of venture capitalists, new survey finds
The next generation of female venture capitalists are rising through the management ranks, though there are some caveats to be aware of.
A new survey looking at the compensation of women in the venture capital industry this year found a higher concentration of women in lower-level positions than last year, accounting for around 43% of managers and directors , but only 18% of general partners. Smaller funds tend to be more gender-diverse: Venture capital groups with less than $100 million in assets under management are more likely than larger companies to have a high representation of women in positions high level.
The proportion of women represented in management and leadership positions has increased significantly over the past two years, from 27% in 2020 to 32% in 2021 and 43% currently. At the same time, the proportion of women in senior positions, such as Deputy General Partner or Senior Managing Director, is below 25% and has been for two years.
This indicates either that there is a broken rung that hampers the career mobility of women in the venture capital workplace and/or that the representation of women at these higher levels is set to increase as more women are hired, mentored and have the opportunity to rise within these companies. Jody Thelander, the consultancy firm's founder provided the analysis for the report released by First Republic Bank, hopes the data signals an upcoming shift in the industry.
"Right now, we're seeing more transparency than ever when it comes to compensation, career paths, and succession planning. And there's a stronger mandate for D&I, both from CEOs and their sponsors," Thelander told TechCrunch. "As a result, more and more women are taking adventuring as a serious career path, and that's why we're seeing them start to show up more in those junior ranks. "
Additionally, according to the report, small businesses with a high representation of women in high-level positions likely mean that more women are diversifying to start their own businesses. The share of women who lead general partners in companies with assets under management of less than $100 million is 31%, compared to 14% in companies with assets under management of $500 million or more . No matter where a woman goes, however, the issue of fair and equitable pay is always a topic of discussion.
The next generation of female venture capitalists are rising through the management ranks, though there are some caveats to be aware of.
A new survey looking at the compensation of women in the venture capital industry this year found a higher concentration of women in lower-level positions than last year, accounting for around 43% of managers and directors , but only 18% of general partners. Smaller funds tend to be more gender-diverse: Venture capital groups with less than $100 million in assets under management are more likely than larger companies to have a high representation of women in positions high level.
The proportion of women represented in management and leadership positions has increased significantly over the past two years, from 27% in 2020 to 32% in 2021 and 43% currently. At the same time, the proportion of women in senior positions, such as Deputy General Partner or Senior Managing Director, is below 25% and has been for two years.
This indicates either that there is a broken rung that hampers the career mobility of women in the venture capital workplace and/or that the representation of women at these higher levels is set to increase as more women are hired, mentored and have the opportunity to rise within these companies. Jody Thelander, the consultancy firm's founder provided the analysis for the report released by First Republic Bank, hopes the data signals an upcoming shift in the industry.
"Right now, we're seeing more transparency than ever when it comes to compensation, career paths, and succession planning. And there's a stronger mandate for D&I, both from CEOs and their sponsors," Thelander told TechCrunch. "As a result, more and more women are taking adventuring as a serious career path, and that's why we're seeing them start to show up more in those junior ranks. "
Additionally, according to the report, small businesses with a high representation of women in high-level positions likely mean that more women are diversifying to start their own businesses. The share of women who lead general partners in companies with assets under management of less than $100 million is 31%, compared to 14% in companies with assets under management of $500 million or more . No matter where a woman goes, however, the issue of fair and equitable pay is always a topic of discussion.
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