Tech Nation – new insights on the gender gap in investment
They say good ideas will get investment … but maybe that’s only true if the founder is a man.
Months of data work by the Tech Nation Insights team culminated in the annual state of the nation of UK tech – the Tech Nation Report 2018. In my opinion, the 2018 report is the most comprehensive and rigorous analysis of a tech ecosystem globally. Since publication, I’ve been narrowing my focus and delving into some of the UK tech investment information from the last ten years – all 13,000 deals. I’ve been scraping the gender information of company founders from each deal.
Unsurprisingly, investment in tech companies founded by women is consistently lower than money injected into firms started by men. In fact, the median investment made in women-founded tech firms was around £200k lower than funds raised by male counterparts. In one year, this was as high as £440k. It’s important to note that this is the median average amount raised – it isn’t influenced by a few huge outliers.
What is clear is that the gap is uniform. There’s a consistent differential in capital raised. There hasn’t been a single year in the past decade when the average deal for women was higher than it was for men. Even more discouraging is the fact that the gap grew by nearly 100% in 2017.