ROI is High for Startups by women

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The Boston Consulting Group and Mass Challenge says that a startup found or Co-founder by women get less funding and investments but generate  much more revenue than startups who are led by male.

The report stated that when a woman founder or Co-founder give the idea of startup in front investors they don’t get the exact response but even the less investment the revenue generation  is very much high than the startups led by men

Around 350 alumni companies had taken part in the survey held by Mass Challenge (Mass Challenge gives support, mentorship, and programming for new startup companies to grow healthy.

The research have several points :

  • Women founder or co- founder receive  funding $935,000 from investors that is less than 2.12 million from startups led by men.
  • Even after the funding gap they generate $730,000 over five years.
  • By every dollar of funding women have generated  71 cents where men had generated 31 cents only.
  • For example if investors  have put the same amount of money in startups led by women  which they had invested  in male founder or co founder, then they would have generated $85 million  as compared to men.

“It’s very sad to know this fact that even in this century women get less funding then  men” said Katie Abouzahr global researcher at [email protected] and Co author of this survey.

Another related research said that 50% of Indian  women leave their corporate career at junior  or mid, compared to 29% of Asia. After 30 years, India’s $167 billion IT industry have its first female head at Intel Corp. Debjani Ghost president at National Association of Software and Services COMPANY (NASSC).

Speaking about Female entrepreneurship in a report by MSME said that 20%of every 1000 MSMs are runned by female founders in India. Again in a separate report on Indian startups, presented by Nasscom in collaboration with Zivvon in 2016 said only 9% of female are founder and Co-founder in India.

India’s name in the list of women entrepreneurship is at bottom. India need to improve systems  for empowering women entrepreneurship,  women are there to take risk with their startups as investor should provide better infrastructure and method to improve and implement better  ideas.

In other  report mention that Delhi got position 22 as world’s best city in the list of World’s best cities for female entrepreneurs.

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