> Spring 2020 Special
The US, Land of the Free, Set to Become ‘Land of the She’ as Gender Gap Slowly Narrows
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he United States has long been touted as the land of opportunity, and for some women in tech that dream is becoming reality.
These small victories are the result of concerted efforts at every level, internal corporate acceleration programmes and mentorship and networking support.
According to the National Centre for Women in IT, female-led tech companies have been found to deliver a 34 percent higher return on investment. The growing library of data-backed research and a shift in public opinion are forcing venture capitalists and HR managers to rethink old patterns. Although more women than ever are launching or leading tech companies, they still only account for 11 percent of the Fortune 500 tech executives.
Non-profits have sprung up to encourage girls into pursuing studies in the fields of science, technology, engineering, and mathematics (STEM). One such is Code.org, a non-profit advancing the US computer science curriculum in all 50 states. More than a million US teachers incorporate Code. org courses into their lesson plans, and nearly a million students worldwide have competed in its annual Hour of Code hackathon.
The tech world has benefitted from women’s contributions, but it still struggles with diversity and gender pay equality. Women comprise just 26 percent of the US tech workforce — which totals some four million professionals — and earn a median annual salary $24,000 shy of the male average. They also attract less VC funding than men. In 2019, companies with all-female founding teams secured less than three percent of invested capital across the entire US start-up ecosystem. Although dismal, these figures represent an improvement over previous years, and progress is being steadily pushed forward by empowered entrepreneurs and inspired investors. Companies with one or more female founders raised over $18bn in 2019, and a record number of them made it to unicorn status ($1bn valuation or higher). Crunchbase reports a five-fold increase since 2013 in the number of unicorn companies boasting at least one female founder — from just four to 21.
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Code.org students are 45 percent female, 50 percent underrepresented minority, and 45 percent from high-needs schools. Research from McKinsey and Company found that women of colour were under-represented at every level in the workplace, particularly at the senior leadership stage. While women now account for about one in five C-suite executives, only one in 25 is a woman of colour. Black Girls Code (BGC) is a non-profit that hopes to change those statistics, and has been training girls in STEM subjects for over a decade. McKinsey estimates an additional $12tn in GDP could be unlocked by narrowing the gender gap over next five years. That sum should be motivation enough, but it’s the challenges that female founders are successfully tackling that have convinced consumers and investors. From biotech engineers pushing the boundaries of healthcare to eco-warriors fighting against climate change, female founders are harnessing the power of technology and science – for the collective good. i
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