Venture capital investments in female-founded companies more than doubled in value from 2017 to 2018, according to a study by PitchBook and All Raise, a non-profit organization accelerating the success of female founders and funders.
The study, supported by divisions of Goldman Sachs and Microsoft, found that VC investment in startups with at least one female founder more than doubled to $46 billion in 2018 from $21.9 billion in 2017.
"It's an incredible step," Jenny Abramson, an active member of All Raise, told Cheddar Tuesday. "To see that kind of exponential growth, both in terms of the numbers of deals getting funded as well as the dollars going, is incredible."
The study also found that companies with a female founder are more likely to exit one year faster than companies with male-only founding teams. Recent reports also show that investor returns are higher, revenue is higher, and companies are more capital-efficient when a female is part of the founder or leadership team.
"In the private markets, time is money," Abramson said, referencing the accelerated exits. "So, this is a very exciting report."
<i>Cheddar</i>
While there's lots of good news in this report, it does highlight some areas in need of improvement. According to the study, in the San Francisco bay area, VC funding into female founding companies was just 10 percent. That number improves to 17 percent in New York City and 28 percent in Los Angeles.
"The numbers in L.A. and New York are pretty impressive compared to Silicon Valley," Abramson said.
Abramson said that there are a number of reasons why some cities are leveling the playing field better than others, citing better networking and mentorship opportunities in L.A. in New York. Still, Abramson notes, a bias toward familiarity may be swaying VC dollars.
"Some of this has to do with the age-old part of venture capital, which is pattern recognition," Abramson said. "When you don't have perfect data on businesses you're investing in, you often invest with some unconscious bias. I think that's traditionally been the case in Silicon Valley."
Abramson, who is the founder and a managing partner at female-centric VC firm Rethink Impact, says firms like her own and movements like All Raise have aided in bringing more awareness and action to the problem.
"Movements, like All Raise and #MeToo and others, are really mattering and really helping people see that this is the moment," she said.
Cracker Barrel said late Tuesday it’s returning to its old logo after critics — including President Donald Trump — protested the company’s plan to modernize.
Low-value imports are losing their duty-free status in the U.S. this week as part of President Donald Trump's agenda for making the nation less dependent on foreign goods. A widely used customs exemption for international shipments worth $800 or less is set to end starting on Friday. Trump already ended the “de minimis” rule for inexpensive items sent from China and Hong Kong, but having to pay import taxes on small parcels from everywhere else likely will be a big change for some small businesses and online shoppers. Purchases that previously entered the U.S. without needing to clear customs will be subject to the origin country’s tariff rate, which can range from 10% to 50%.
Southwest Airlines will soon require plus-size travelers to pay for an extra seat in advance if they can't fit within the armrests of one seat. This change is part of several updates the airline is making. The new rule starts on Jan. 27, the same day Southwest begins assigning seats. Currently, plus-size passengers can pay for an extra seat in advance and later get a refund, or request a free extra seat at the airport. Under the new policy, refunds are still possible but not guaranteed. Southwest said in a statement it is updating policies to prepare for assigned seating next year.
Cracker Barrel is sticking with its new logo. For now. But the chain is also apologizing to fans who were angered when the change was announced last week.
Elon Musk on Monday targeted Apple and OpenAI in an antitrust lawsuit alleging that the iPhone maker and the ChatGPT maker are teaming up to thwart competition in artificial intelligence.
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