Why this story matters:
Eva de Mol from the Vrije Universiteit Amsterdam and investor Janneke Niessen recently published research showing how sexism influences investment opportunities for startups in the Netherlands.
The two women analyzed the distribution of venture capital from 40 different Dutch investment funds, and found that only 1.6% of startups funded by Dutch investors are led by women. When it comes to mixed teams, the outcome isn't much better: only 6.8% of investments go to mixed-gender teams.
The fact that such a homogenous group has a monopoly on innovation, and that they get to choose which products and technologies will be used (or not) in the future, is a serious issue.
“Dutch technology investors are at the head of innovation. They determine which companies have the opportunity to grow. They are reputed groups, such as governments and institutions, who invest serious amounts of money (from 5 to 10 million euros) in ambitious startups," Eva de Mol said in an interview with Nu.nl.
Generally, this restrictive approach leads to a less inclusive society. And while women already face unequal (economic) opportunities, the fact that investments are mostly targeted to male-led startups only worsens the issue. Depriving female-led startups of investments is a waste of entrepreneurial talent, money and opportunities.
It has been proven time and time again that diversity improves performance, but sadly "men prefer to choose men," according to Eva de Mol.
Details from the story:
- Male-led startups receive more Dutch investment funds than companies started by women or mixed teams
- In their research, the women analyzed the distribution of venture capital from 40 different investment funds and found that only 1.6% of startups funded by Dutch investors are led by women
- Only 6.8% of investments go to mixed teams
