The industry fit illusion

1 min read · March 21, 2025
New Power Labs

Investors reward male founders for being bold. They penalize female founders for being outsiders.

In male-dominated industries, male founders retain 76% equity, while female founders retain only 64% equity. In female-dominated industries, both male and female founders retain an average of 71% equity (Kanze et al., 2020). 

The problem isn’t performance—it’s perception. Investors see female founders in male-dominated spaces as a mismatch, leading to lower valuations and less funding. Meanwhile, male founders move freely between industries, unchallenged.

Research shows that when female founders receive the capital they need, they outperform male peers even when catering to male-dominated industries. (Hébert, 2020)

Bias disguised as “fit” is bad business. 

Narinder

New Power Labs

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