The current Female Founders Monitor shows that female startup founders are feeling the coronavirus crisis and its associated challenges more strongly. The crisis's focus clearly highlights the problem of balancing business and family life. Over 60 percent of female founders with children have had to significantly reduce their working hours. Almost 70 percent of the companies surveyed report negative effects of the pandemic on their operations. Female managing directors cite declining revenue (66.3 percent), the cancellation of events (62.5 percent), and delayed orders (61.5 percent) as the most common causes.
In addition to the 'Corona Flash Survey,' the third "Female Founders Monitor" conducted by the Startup Association revealed that women continue to be underrepresented in the startup ecosystem. Compared to the previous year, the proportion of female founders in Germany increased by 0.6 percentage points to 15.7 percent. Brigitte Zypries, former Federal Minister for Economic Affairs and Energy:
"The startup scene needs one thing above all: more women! […] The startup sector is repeating what we know from the executive levels of our large corporations—women are massively underrepresented.
“We must break away from social stereotypes”
The so-called "gender bias" regarding financing is particularly problematic. Only 5.2 percent of female-led startups receive financing of over one million euros (male teams: 27.8 percent). 56.7 percent of female founders cited poor access to the investment sector as a possible reason, compared to only 36.7 percent of male teams. The high barriers to entry could be counteracted, among other things, by strengthening diverse teams.
Gesa Miczaika, Board member of the Startup Association, says:
"We need to break down structural barriers, strengthen the networks of female founders, and generally break away from societal stereotypes. Only in this way can we significantly advance women in the startup sector and support them in building successful and sustainable companies."
Focus on socially relevant topics
The focus of startups is also different: Female founders are underrepresented in information and communications technology. Instead, overarching social goals play an important role for female founders, even in startups. For example, female teams are often active in the healthcare sector—almost 17 percent of female-led startups operate in this sector. Other focuses include lifestyle—particularly consumer goods and fashion—and education.
Social entrepreneurship and the green economy are also important to the female founders. Women are therefore a fundamental driver of medical, social, and sustainable innovations.
The complete “Female Founders Monitor” as well as the most important results of the Corona flash survey can be found here. Interviews with successful female founders, such as Veronika Riederle from Demodesk or Lisa Gradow from Usercentrics— can be found in the report.
