Gender Inequality in the Venture Capital Industry

This project examines the secretive world of the Venture Capital Industry specifically focusing on the ideology of gender inequality. Through research it has been found that females within the industry at the partnership level have actually decreased. By completing a literature review, we found that there were several biases and stereotypes that are prevalent within the industry and could be contributing factors for the decreasing participation. Following our literature review, we focused on a sample of 100 from the LPJ Index, and gathered data on all individuals listed, those at the partnership level and all other individuals within the industry. Through analyzing our data we found that female participation at the partner level is low and more importantly that 68% of firms do not even have a female partner in their ranks. We found that male and female partners have relatively the same education and the same areas of interest, which should suggest that they are on the same playing field, which is clearly not represented in the partnership composition, where males are dominating the industry. These findings lend credence to some of the deep rooted stereotypes that are facing females in the Venture Capital Industry and could explain why there are not many opportunities for them. Through future research and participation from firms to actively help increase the opportunities for women, the gender inequality that is facing the Venture Capital Industry can begin to narrow.