Fairview Capital 2019 Market Review of Woman and Minority-Owned Private Equity and Venture Capital Firms

This 2019 report by Fairview Capital examines the state of woman and minority-owned private equity and venture capital firms.

The universe of woman and minority-owned private equity and venture capital firms closed out the decade with another record year of growth.  At nearly 400 firms, this group is larger than ever, and 2019 marked yet another record number of firms raising capital, with nearly 200 funds in market. With this growth has come increased complexity as market dynamics have resulted in new firm formation in often-overlooked areas of the private markets.

Woman and minority-owned firms remain well positioned to succeed, in part due to this differentiation. Despite the growing opportunity set, institutional investors remain slow to invest capital with diverse firms, due to a number of factors, including continued misconceptions, biases and lack of information. A deliberate, programmatic approach remains one of the best ways to invest successfully with diverse managers.

Table Stakes | Highlighting and shifting the equity gap

Only 1 in 3 people in venture-backed companies is a woman, and women are granted less equity on average. Read the 2019 study using anonymized Carta data to learn what’s behind the gender equity gap.

VCs, Founders, and the Performance Gender Gap

In this paper, Dr. Raina compares the gender gap in performance between startups initially financed by syndicates led by VCs with only male GPs and startups financed by syndicates led by VCs with female GPs.

The author finds a much larger performance gap among startups financed by syndicates with only male lead GPs and shows that this disparity is driven by differences in VCs’ ability to evaluate female-led startups. The author’s findings imply that VCs contribute to the performance gender gap in startups.

ProjectDiane2018

ProjectDiane2018 is a biennial demographic study authored by digitalundivided. It reveals a snapshot of the state of Black Women Founders in the United States, and the startups they lead.

Gender and Venture Capital Decision-Making: The Effects of Technical Background and Social Capital on Entrepreneurial Evaluations

In the high-tech industry, women without technical expertise are less likely to be awarded venture capital than their male counterparts who lack this same technical expertise. This gender gap does not exist when comparing men and women who both possess technical skill.

This study from the Harvard Kennedy School explores the interaction of having a technical background with gender biases in performance evaluations of male and female entrepreneurs and their proposed ventures through an experimental design.

10,000+

high-growth startups—across all 50 states and DC—raised venture funding in 2019 to build and grow their businesses.

42%

of all U.S. IPOs from 1974 to 2015 were venture-backed companies, representing 63% of the market capitalization and 85% of R&D.

2.9 million

is the average net jobs created annually between 1980 and 2010 by high-growth startups, which account for ~50% of gross jobs created in the U.S.

1,300+

U.S. venture firms are active today, managing an aggregate of $444 billion in assets.