1/ Recently we published #TheGapTable and called on the industry to measure diversity of cap tables. We suspected women are vastly underrepresented as owners in tech startups. Thanks to our partnership with @CartaInc, we now have the data to prove it. https://t.co/XvQRCL5N7f
2/ Carta analyzed 6,000 startup cap tables by gender. We believe this is the *first* large scale equity study of its kind. The results are stark. Women make up 33% of the founder and employee workforce, but guess what % of the equity value they hold?
3/ Women hold just 9% of employee and founder equity value. Men own 91%. Let that sink in.
Let’s break it down:
Women make up 13% of founders, but capture just 6% of founder equity value.
Women make up 35% of employees, but hold just 20% of employee equity value. pic.twitter.com/B1gslSJkqR
4/ In tech startups, the average female founder owns just 39 cents in equity for every $1 that the average male founder owns. pic.twitter.com/AolfwSddqi
5/ In tech startups, the average female employee owns just 47 cents in equity for every $1 that the average male tech employee owns. pic.twitter.com/ysxOWhy2wh
6/ The downstream effects of this underrepresentation are profound. The financial resources from successful startup exits fund the next generation of institutions in Silicon Valley. And those startups, VC firms, products, and philanthropies shape the whole world.
7/ We urgently need to start measuring, publishing and fixing #TheGapTable. @CartaInc is setting an example by measuring and fixing their gap table. CEOs, follow @henrysward's lead: https://t.co/9IgaVGFMbc
8/ CEOs & Founders: this is your chance to power a movement. Hire women from day one. Raise money from female investors. Measure, disclose and fix your cap table. @Cartainc makes it easy using this tool. https://t.co/3ninh5xbhE
9/ Investors: you control who gets capital and at what terms. Invest in women. Give them fair and equal terms. Help your male founders recruit women into their companies. Measure and publish the diversity of who you’ve funded.
10/ Employees: ask your CEO to measure and publish the diversity of your company’s cap table. Make sure to educate yourself on your own equity and how to best value and benchmark it. Carta’s Equity 101 guide is a great starting point. https://t.co/DPH6I60Gy4
11/ People with privilege: be an ally. We know many of you will want to be part of this movement. Demand cap table diversity measurement. Proactively talk about your own equity and compensation with women and underrepresented minorities so they can better negotiate for parity.
12/ We hope this is the 1st of many analyses that help us understand unequal distribution of wealth in tech. We need more research that includes non-binary gender identity, race and ethnicity, and intersectionality. And we need to better understand the drivers of this inequality.
13/ If we want to benefit from a broad range of people shaping the products and power structures of Silicon Valley and beyond, we need to start talking about equity in the context of equality. We’ll never have an equal seat at the table until we close #TheGapTable.