Summary of Silicon Valley’s Equity Gap

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Silicon Valley’s Equity Gap summary
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It’s no secret that women earn far less than men, even if they are in the same profession or have similar responsibilities. Perhaps not surprisingly, the gap is even wider when it comes to equity ownership in Silicon Valley. New research from venture capital group #Angels reveals that even though women make up one-third of employees and founders at start-ups, they hold just 9% of equity value. Entrepreneurs, venture capitalists and investors of all genders will find this an eye-opening read. 

In this summary, you will learn

  • How women in Silicon Valley fall far short of men when it comes to equity compensation;
  • Why the huge gap in equity ownership exists; and
  • What CEOs, employees and investors can do to address the imbalance in Silicon Valley.
 

About the Author

#Angels is a venture capital firm based in San Francisco.

 

Summary

The world’s best-known center for technology innovation is also a hub of inequality when it comes to giving women a share of the equity pie. To find out how large the gap in equity ownership is between men and women, analysts sifted through data from 6,000 Silicon Valley companies with almost $45 billion in total market value. They found that, even though one-third of founders and employees are female, women hold only 9% of corporate equity value. In other words, 91% of equity value rests in the hands of men. The 13% of founders who are female own just 6% of “founder equity value.” Women account for 35% of equity-owning employees, but own just 20% of the value of employee-held equities. The inequalities for women of color are even more striking. 


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