Where are all the female founders?
The number of women setting out on their own in business is too low but we’re working on it, says the head of Google for Startups in Israel
According to Yuval Passov, who has spent the best part of a decade working at Google, women are still facing barriers when it comes to setting up a business.
Reports quote statistics for 2022 showing that only four out of 47 global economies report higher total entrepreneurial activity rates for women than for men. And Israel, aka ‘the start-up nation’, is no exception. Although the number of entirely women-led companies has doubled in the past decade, they still only comprise 6.3 per cent of Israeli startups.
“Women are still being held back when it comes to setting up a business,” says Passov. “Considering that women are 50 per cent of the population, we see there is still lots of room for improvement. And it is precisely programs like ours (the Google Growth Academy customised for female founders), and many others that support and actively work to lift female founders higher, that lead to such improvement. It’s also very important to not only look at the percentage of female founders, but equally, if not more importantly, the percentage of funding raised by these founders because without capital, the startups will not survive. Here we still see a very very low percentage of funding raised by female founders, which needs to change.”
In 2021, women raised just 1.8 per cent of investment in Europe compared to 9.3 per cent that went to mixed-gender founding teams. The Israel Innovation Authority’s Women in Tech 2022 report shows that only four per cent of the investments in Israel are going to startups led by women, and according to the latest Israeli Tech Gender Distribution Report, spearheaded by Google for Startups and IVC Data and Insights, only two per cent of startups with a woman founder raised above $50 million between 2018 and 2021.
Women also still face access barriers to networks and role models, notes Passov. He adds: “The amount of time and energy it requires to found a startup can be all-encompassing, which can be difficult if you are a mother and have home responsibilities – a fact one cannot ignore still exists in society. Women still bear much of the brunt when it comes to the household.”
All this begs the question, what needs to change? “An uptick in female presence in the VC boardroom is key. Research shows that women raise less money than men, and that this could be directly linked to lack of women leading VCs and writing the cheques. Many female-founded startups are around femtech, an arena many men simply do not grasp or see the need for – where fellow women would. The balance needs to be across the board – from the CEO to the principal investor.”
Google for Startups Israel is working hard to solve this disparity through its Growth Academy – Women Founders across Europe, Americas, APAC and Israel, and by using its social media channels to amplify female founders and femtech to reach a wider audience. “The more female founders the world has, the more it will inspire young women to pursue this profession and know it’s possible!”
The business benefits are clear. “Research shows that a diverse team leads to better results. The Harvard Business Review states that in a global analysis of 2,400 companies conducted by Credit Suisse, organisations with at least one female board member yielded a higher return on equity and higher net income growth than those that did not have any women on the board.”
Prior to joining Google for Startups, Passov founded the gaming team in Google Israel, working with the leading gaming companies and startups in Europe. He is also the founder of Game On! Asia, the top mobile gaming podcast in Asia.
He believes now is an opportune time to launch a startup. “We all know that that many successful companies were found in times of crisis.” Think Spotify, Airbnb and Uber.
“Investors are looking for early-stage companies and starting your company during challenging times will help you to be the leader in your category in the future.
Entrepreneurs will need to focus on products the companies/consumers must have. Everyone now is thinking twice before they make a purchase, but if your product will help them to be more profitable or save money, they will buy it.”
The pics
The context: Google Startups Israel female founder program wrapped up with a graduation event of 100 including leading VCs, CEOs of scaleups and Google leadership, including Orit Farkash HaCohen (center in photo), Minister of Innovation, Science and Technology kicked off the event and said: “I am thrilled to see Google’s initiative to invest millions in diversifying employees in high-tech. Google’s actions express the deep alignment of the industry, with the government, in this mission. I am invited to many events but this is the kind of event that warms the heart. This is a prime example of business leadership that engages in social change.”
Thank you for helping to make Jewish News the leading source of news and opinion for the UK Jewish community. Today we're asking for your invaluable help to continue putting our community first in everything we do.
For as little as £5 a month you can help sustain the vital work we do in celebrating and standing up for Jewish life in Britain.
Jewish News holds our community together and keeps us connected. Like a synagogue, it’s where people turn to feel part of something bigger. It also proudly shows the rest of Britain the vibrancy and rich culture of modern Jewish life.
You can make a quick and easy one-off or monthly contribution of £5, £10, £20 or any other sum you’re comfortable with.
100% of your donation will help us continue celebrating our community, in all its dynamic diversity...
Engaging
Being a community platform means so much more than producing a newspaper and website. One of our proudest roles is media partnering with our invaluable charities to amplify the outstanding work they do to help us all.
Celebrating
There’s no shortage of oys in the world but Jewish News takes every opportunity to celebrate the joys too, through projects like Night of Heroes, 40 Under 40 and other compelling countdowns that make the community kvell with pride.
Pioneering
In the first collaboration between media outlets from different faiths, Jewish News worked with British Muslim TV and Church Times to produce a list of young activists leading the way on interfaith understanding.
Campaigning
Royal Mail issued a stamp honouring Holocaust hero Sir Nicholas Winton after a Jewish News campaign attracted more than 100,000 backers. Jewish Newsalso produces special editions of the paper highlighting pressing issues including mental health and Holocaust remembrance.
Easy access
In an age when news is readily accessible, Jewish News provides high-quality content free online and offline, removing any financial barriers to connecting people.
Voice of our community to wider society
The Jewish News team regularly appears on TV, radio and on the pages of the national press to comment on stories about the Jewish community. Easy access to the paper on the streets of London also means Jewish News provides an invaluable window into the community for the country at large.
We hope you agree all this is worth preserving.
