Monday, July 31, 2017

Why Startups With A Female Founder Grow Faster And See Greater Return On Investment - GIRL TALK HQ

by Adela Belin
Originally published: July 27, 2017


In the 2017 annual startup report by TINYpulse, it was found that the fastest-growing organizations are 75% more likely to have a female founder. The New York Times report also revealed that the presence of women in the workplace was directly related to an increase in profitability. Female founded startups are growing at a fast rate. Although the same TINYpulse report stated that women-led startups receive fewer investment dollars than male-led ones at different stages of the funding process, the venture capitalists and investors are considering investing more money in great ideas put forth by women.

This prospect makes sense because the presence of women in successful companies resulted in an average of 10.1% Return on Investment(ROI) as compared to 7.4% for those firms with fewer female members. Today, more than 250,000 women in the U.S. own and lead multi-million dollar enterprises. The data received from these reports suggests that women have the vision and capacity to lead successful businesses. Although, in these reports there is no evidence that states why startups with female founders grow faster, there are many psychological and emotional reasons(that make good business sense) helping the ‘woman’ factor excel in this arena.