Tuesday, July 11, 2017

Venture capital’s diversity problem - EUROPEAN CEO

by James Stannard
Originally published: July 10, 2017
Publisher: EuropeanCeo.com

Despite making great strides into the labour market over the past half-century, women are still endemically under-represented in the upper echelons of private companies. Among the world’s 2,500 largest firms, just 12 women were appointed to CEO roles last year, while men constituted 96.4 percent of the incoming class. Consequently, it is little surprise that many people still think that a glass ceiling stands between women and professional upward mobility.

While there is room for greater representation everywhere, some industries are worse offenders than others. According to a new report by industry watchdog Diversity VC, the $4.8bn UK venture capital sector is one of the country’s worst in terms of female representation. The study found that just a quarter of venture capitalists are women, and that 48 percent of venture capital firms are all-male. Meanwhile, two-thirds of such companies have no female decision makers at all, and male venture capitalists hold 87 percent of all decision making, partner level roles. The study was the first of its kind to be published in the UK and sheds new light on an industry that holds sway over businesses in all sectors of the economy.