Canadian Women in Venture Report 2019
3 mins read · 2019
Female Funders
Firms with one or more women partners raise funds that are, on average, 66 percent the size of those raised by firms with all-male partners.
Summary
Despite efforts toward increasing gender diversity in the venture capital (VC) industry, a significant gender gap remains among investment decision-makers and recipients of venture capital funding. This report gathers data from over 300 venture capital firms and corporate venture arms across Canada and the US, for a glimpse at the current state of the VC industry and how far we need to go to bring greater equity.
Key Findings
Gender diversity in Canadian venture capital:
15.2 percent of partners at Canadian venture capital firms are women.
11.8 percent of managing partners at funds across Canada are women.
10.3 percent of venture partners at Canadian firms are women.
The authors estimate $4.6 billion is invested in active Canadian funds with no women partners.
Of all LP dollars invested in venture capital funds in 2018, 85 percent of capital invested in Canada in 2018 was into funds with no women partners.
Firms with one or more women partners raise funds that are, on average, 66 percent the size of those raised by firms with all-male partners.
16.7 percent of angel group members across Canada are women, which increased 14.2 percent compared to the previous year.
Venture capitalists play a crucial role in deciding whose products and ideas get a chance to better our lives and shape the coming future. The report also found that with increased seniority, the representation of women decreases — for instance, 51.9 percent of analysts were women, while only 15.2 percent of partners (who raise the capital and manage funds) were women.
Takeaways
The report suggests a few ways to advance equal representation throughout the venture capital industry:
Open doors into angel investing and venture capital: Provide mentorship and connections to women founders, technology leaders, and corporate executives to leverage their talent and expertise while expanding VCs’ networks.
Inspire the next generation: For staff at VC firms, volunteer yourself or someone at your firm to speak on industry panels to Canadian university students and increase awareness about career paths in venture capital.
Hold ourselves to a higher standard: Firms may consider implementing and publishing an organizational code of conduct, a founder's commitment, or other tools that outline the rights and expectations of investors, founders, and employees, that explicitly include commitments to gender equality.
Make measuring diversity part of your investment strategy: Increase the rigour around D&I tracking and reporting by collecting relevant disaggregated data, and using that information to benchmark and make better decisions.
Read the full report here.
References
Robinson, L., Furlong, K., & Rojas, C. (2019). Canadian Women in Venture Report 2019. Empowering female investors | Female Funders.
