FEMALE FOUNDERS SPEAK OUT
HOT TAKES ON MONEY, SEXISM, AND TRUMP FROM OUR FIRST SURVEY OF WOMEN ENTREPRENEURS
BY LAYNIE ROSE
Because 80% of companies globally are run by men, most founder surveys disproportionately reflect the male perspective. From those studies, we know that men are risk-takers, they’re relentlessly optimistic about their own prospects, and they raise money confidently. Groups like Catalyst and Lean In offer great insight into high-achieving corporate women, their varying career paths, and their struggle for equal pay. But female founders remain underanalyzed. That’s why Fast Company and Inc., our sister publication, decided this year to launch the inaugural State of Women and Entrepreneurship survey. The 279 respondents rep-resent the full spectrum of business owners, from one-woman shops to the head of an enterprise with 6,000 employees. They work in dozens of industries. More than half left behind corporate careers to strike out on their own.
We asked them about fundraising, hiring, politics, work/life balance, and more. They were eager to talk— especially, perhaps, in the #MeToo era. A full 53% reported being harassed or discriminated against in their capacity as a founder, at the hands of advisers, vendors, and even their own employees. The majority have enjoyed great success. Sixty-one percent listed their company’s annual revenue as $1 million or above, and 55% are profitable. Still, they don’t always feel like equals. “I’ve been getting invited to private CEO dinners, and learning a lot,” wrote Jean Brownhill, founder and CEO of Sweeten. “But at one of them, a partner of a VC fund asked me to get him wine and hang his coat. I was wearing a sweatshirt with my company’s name. Two steps forward, one step back.”What we learned about their motivation, ambition, and success in the face of lingering bias shows us how much they have already achieved—and how much more work we all have to do.
Funding
CUlture
inequality
politics
We know plenty about the way male entrepreneurs operate.
Equality
Culture
Special Report
StrOng Female Lead
For more findings and stories from the survey, sponsored by Hiscox, visit
fastcompany.com/strong-female-lead
Being an all-female man- agement team, walking into rooms of mostly men and selling them on a fe- male-targeted product was
difficult. We could usually tell early how it was leaning. There were a lot of snap judgments.”
About half of the respondents raised outside capital to launch their companies. The rest leaned primarily on their savings, friends and family, and business bank loans. Of the women who did raise money, 38% reported that they specifically sought out female investors—often because they felt strongly about supporting women VCs.
“
—Molly Howard, cofounder and CEO, La Ligne
Getting started didn’t always break the bank
Fundraising totals
RAISED LESS THAN $50K
RAISED $50K or more
Many respondents reported that their prime motivator for starting a business was that “it was the best way for me to make a big impact.”
Women think big—even if they raised little
OF THOSE WHO RAISED LESS THAN $50K
OF THOSE WHO RAISED MORE THAN $50K
35%
37%
And
There were 21 cofounded companies on our survey that earn $20 million or more in annual revenue
Male cofounders don't matter
Have female-Male COFOUNDER TEAMS
Have female-only COFOUNDER TEAMS
Diversity is welcome
OF THE 116 COMPANIES THAT RAISED $50K OR MORE IN FUNDING HAVE MANAGEMENT TEAM MEMBERS THAT IDENTIFY As trans or non-binary
23
12
9
48
44
39
33
28
22
17
11
5
0
%
52
Prev
Next
Before the [2016] election, I would give a couple hundred dollars to [mostly] local candidates. [Now] I donate more, including
state and federal. I give my employees Election Day off to vote.”
—Nanxi Liu, cofounder and CEO, Enplug
Are you more politically active now than before 2016?
EXPECT THE ECON-OMY TO IMPROVE OVER THE COURSE OF THIS YEAR
EXPECT THINGS TO WORSEN
HAVE CONSIDERED RUNNING FOR OFFICE
Women are more pessimistic about the economy
76%
10%
WILL NOT VOTE FOR TRUMP IF HE RUNS IN 2020
EXPECT THE U.S. ECONOMY TO REMAIN THE SAME IN THE NEXT YEAR
47%
30%
Trump disapproval
How Trump voters financed their companies
Who will vote for trump if he runs in 2020
Number of Vc-backed women
51%
Yes
No
49%
Women
All founders*
*Based on a surveyed portion of the 2018 inc. honorees—87% of whom are men
*Including home equity, friends/family, credit cards, and sba guaranteed loans
PERCENTAGE
20
15
10
0%
VC
Personal savings
Business bank loans
20%
Other*
11%
84
70
63
56
49
42
35
21
14
7
Politics
Entrepreneurs aren't thrilled with the current political leadership. Eleven percent voted for President Trump, and only 12 founders rated his performance as “strongly favorable.” Many of the rest are taking action: “I listen more. I read more. I’m more vocal with my peers,” wrote one founder. “And I put my money where my mouth is.”
My husband is my co-founder and co-CEO, but I run the company day-to-day. We would walk into a room with bankers or industry leaders and [they would] address him, until it became clear that I was actually running the company.”
—Courtney Nichols Gould, cofounder and CEO, SmartyPants Vitamins
women reported experiencing
Have experienced
In their capacity as a founder
bias or harassment
in their capacity as a founder
Sexual harassment
Health consumer products and services SoFtware business products and services advertising and marketing financial services
The women who had been discriminated against or harassed sounded off on the sources.
Who's crossing the line
These industries had the most reports of discrimination or harassment:
Susceptible sectors
53
50
40
30
Employee or subordinate
26%
32%
Cofounder
5%
Executive team member
9%
Vendor or supplier
Investor or banker
58%
Board member or adviser
60
More than half the women said they experienced some form of harassment or bias—including gender, race, sexual orientation, or age discrimination—in their capacity as founders. Most chose not to take any legal action. As one founder put it, “[I] let it roll off my back. It’s going to happen. It’s just reality.”
I don’t know how we’ll afford to support paid family leave, but I feel ethically obligated to make it happen no matter what.”
—Olivia June, founder and CEO, Vina
I’ve sacrificed my time and sleep[to be an entrepreneur]. I could perhaps be making more moneyinside a bigger company, but I’d have to sacrifice my
freedom, my vision, and my highest opportunity to make a difference.”
—Cheryl Contee, CEO, Fission Strategy
In a dual-income HOUSEHOLD EARN MORE THAN THEIR PARTNER
55
Women Founders
Employers nationally*
64%
38%
VS.
They provide the benefit at almost double the national average.
Paid leave advocates
Women-led companies are more likely to offer family leave as their revenue grows—up to a point.
Who prioritizes paid leave
IN MILLIONS
$1– $4.9
<$1
16%
6%
$5– $19
$20– $49.9
>$50
25
culture
The majority of our respondents have at least one child and work between 40 and 60 hours per week. Thirty-nine percent report feeling that they have good work/life balance, or at least that they have more balance than they did before they became entrepreneurs. Only 30% report working more than 60 hours per week.
