According to First Round Capital, a top venture capital firm located in Philadelphia, PA, women founders outperform men. In a report published by the firm yesterday, First Round Capital revealed the finding as one of ten major insights it has learned over the past ten years the VC firm has been in operation. Called the First Round 10 Year Project, First Round Capital looks at their data set of 300 invested companies and approximately 600 founders to discover ten lessons it has acquired.
The discovery that women founders outperform their male peers is the number one major observation that First Round Capital has made. Looking at their own portfolio, companies with a female founder outperformed companies with all-male founding teams by 63 percent. And, while First Round admits that their data is only a small subset of the overall market, their findings regarding the overall success of startups with women founders isn’t new.
Looking at stats jointly published by craigconnects and Women Who Tech earlier this year, women-led startups are found to actually have a 35 percent higher ROI when venture-backed and generate 12 percent higher revenues than man-led startups; overall, they bring in 20 percent more revenue. Despite these findings, an overwhelming majority (86 percent) of venture-funded startups have no women founders or management.
The nine other industry insights gained from First Round Capital include:
1. Startup Fortune Favors the Young
Companies with teams with an average age under 25 (at the time of First Round’s investment) perform nearly 30 percent above average. Their data also showed that while the average age of all the founders in their portfolio is 34.5 years, the age was younger for their top ten investments – 31.9 years. This isn’t all too different from recent findings that reported the average startup founder to be 31 years old.
2. Where You Went to School Matters
As much as it’s hard to face, . .. . . . . .>>> READ MORE at: