What’s wrong with the startup ‘gender gap’?Ideas for increasing the number of female entrepreneurs by Kathy Matsui and others

Why are there so few female entrepreneurs and female investors? We will explore the factors and solutions of the gender gap, which is a problem in the world of startups, from the perspective of both entrepreneurs and investors. MASHING UP SUMMIT 2022How to change the gender gap in the startup/VC industry?” highlighted various problems from the perspective of investors and entrepreneurs.

Speakers include MPower Partners General Partners Cathy MatsuiShinsei Corporate Investment Managing Directoryellow spring plum(Huang Chunmei), CIC Tokyo General ManagerMasaru NaguraMr. is on stage.The moderator is Thrill CEO Atsuko HorieMr. served.

Isn’t there an internal factor in female entrepreneurs themselves?

First, Huang, who founded the first impact investment fund affiliated with a Japanese bank ( Introduced by Huang.

“As of 2017, 34.2% of entrepreneurs are womenis. “Isn’t it a little? ]but the number of incorporated companies will be 14.2% in 2021. Even though there are many independent business owners, there are still few people who have a company or organization.

Also, looking at the “funding” figures, among the top 50 companies,In 2019, 2% of companies with female founders raised funds, and 1% of female-led VCs.That’s the number. I understand that there are still few people who have raised funds and have reached the point where they can aim for listing.” (Mr. Huang)

Furthermore, the ratio of female presidents in newly listed companies is 2%. It turns out that there are quite a few. So what are the factors? There are internal factors.

As an entrepreneur, Horie says he had his own biases.

“I was on the side of starting a business, but I was certainly worried that I would have to do an IPO and that the organization would have to grow rapidly, but the organization would collapse.Risk hedging is preferred over scaleThat was also my own experience.” (Mr. Horie)

In response, the speakers commented on their respective viewpoints as follows.

“If we look only at impact investment funds, we currently invest in 12 companies, but only one company has a female president. It can be said that it is small.” (Mr. Huang)

moreover,”do not join the community“I don’t have the courage to jump”There is also the problem of

“I hear from female presidents that it is difficult to get information because it is difficult to get into the community. One of the internal factors of female entrepreneurs is that they are unable to join the network or do not have the courage to jump in on their own. I think it’s one.” (Mr. Huang)

Female entrepreneurs can grow if they meet good supporters

Cathy Matsui, who has analyzed and commented on women’s careers and the economy from an early stage, has set out to solve this problem.Importance of supporters” was mentioned.

“Looking at the data from the Financial Services Agency, I think Japan is in a critical situation, but the truth is that America is not in such a good place either.20% of VC founders are invested in female founders. There is also a current situation that more than 80% go to companies with male founders.

However,Female entrepreneurs can grow if they have good mentors and sponsors. Both startups and VCs need supporters. Men can’t fight alone. Women tend to be reserved and she doesn’t ask people (what she doesn’t know). But I asked the people around me, “Do you know someone like this? If you ask, you may be introduced.ThatWe must overcome the part of shynessIt is.” (Mr. Matsui)

Therefore”Create a personal BOD (Board of Directors)If you create a network where you can get advice on everything you’re worried about, from child-rearing advice to careers and management, you’ll be able to connect with the people you need.

“I choose people who give me honest advice (laughs). Japan is a much smaller market than America, so I don’t think it would be difficult to build the necessary network.” (Mr. Matsui)

A society where everyone can receive support for starting a business

Ms. Nagura, who works as the general manager of the Innovation Center, which has the largest number of startups in Japan, and who has seen many female entrepreneurs, realized that there were few women in pitch contests, and said, “There is definitely a bias. ” he worries.

“On the other hand, there are of course female entrepreneurs who pitch with confidence. When I look at them, many of them have people who support them, and they have overcome various difficulties. Of course, this does not apply only to women, and we should create a society in which everyone can receive support for starting a business, depending on the situation, in the difficult career of starting a business.

Also, isn’t it necessary to create such an atmosphere from a more fundamental part, from the stage of education?There is some debate about the gender bias in science and humanities, but whether starting a business has become a normal option for women as well as for men.Before we can improve our support system and mentors, I feel that we need to change our awareness as a whole.(Mr. Nagura)

As one of the initiatives, the event hosted by CIC aims for a minority ratio of 50% of the speakers. “A ratio equal to demographics is natural” is the idea of ​​CIC.

And even at MPower Partners led by Mr. Matsui, if there is a request to speak,10% or more of the speakers must be minoritiesThis does not mean that if the percentage is less than 10%, we will not accept the offer, but rather, it is an initiative to encourage other speakers to reach 10% or more.

A Diverse Gender Balance Leads to Economic Advantages

A support system is essential to deal with internal factors, but there are also many structural problems.

“There must be a happier story, and we should tell it,” Matsui said.

“There is a tendency to focus only on long working hours, hard work, and difficulties, but it is important to see examples of successful entrepreneurship. You must present your pass.It is better to start a company that allows you to manage your own work-life balance, values ​​that you value, and a company that has a purpose.should convey the joyIt is.” (Mr. Matsui)

Mr. Huang agrees with that opinion. Education and the presence of role models are essential.

“Even if it’s from elementary school,It is necessary to let people know the fun of starting a business and the real pleasure of being an investor.I think. And when I become interested, I can see a role model, and I can act like ‘Let’s try it too.'” (Mr. Huang)

In addition, Mr. Huang said, “3 Benefits of Diverse Gender BalanceHe also introduced interesting data.

“First, diversity has economic benefitsThat means. According to a 2015 estimate by the OECD, if the labor force participation rate of women rises to the same level as that of men by 2030, GDP is expected to increase by 19.1% compared to what it would have been without it.

Second, it improves investment performance.That means. A KPMG study found that female-managed hedge funds earned a cumulative return of 59.3% from 2007 to 2015, 23 percentage points higher than the overall average of 36%, according to Hedge Fund Research data. I’m here.

The third is the excellent governance function of the board of directors, where diversity is effective.is. Credit Suisse CS Gender 3000 data shows that from 2005 to 2014, companies with female directors had a 2.9% higher return on equity (ROE) than companies with only male directors.

There is also a focus on climate change. As a result of analyzing ESG data published by 11,700 companies in 120 countries by Bloomberg and the Sasakawa Peace Foundation in 2020,Gender Diversity Positively Correlates with Climate Change Governance and Climate Change InnovationIt became clear. The correlation is particularly noticeable when women make up 30% or more of the board of directors.” (Ms. Huang)

Mr. Nagura was surprised at this number,The fact that this current situation is not known is also a structural problem.pointed out.

“I think the biggest problem with structural factors in society lies in the meta-part that many people are unaware of.

For example, I often see people talking about diversity at diversity-related events like this one, but if we don’t create an environment where people can discuss diversity in a normal way at events other than diversity-focused events, the same issues will end up being the same. It will be the same discussion between conscious people and the situation will not change.

When trying to promote the global expansion of Japanese startups in the future, diversity andI think the gender gap is one of the big agendas of the startup industry and the innovation industry.A team that is biased toward a specific gender or nationality cannot easily win in the world.. I think it is necessary for all of us to have that awareness and discuss it in our own activities.” (Mr. Nagura)

Startup Agency, community… What can be done to overcome the status quo

So what can we do now? Finally, I will introduce each opinion.

“There are a number of smaller support networks and networks, but I feel there is a need for something more cross-cutting.startup agencyIt’s okay to be able to Or, I hope that something that connects academia, the private sector, and the government will be created.” (Mr. Matsui)

“I think community is the key to the solution.It is important to install the idea of ​​​​valuing DEI in the existing community. One way to do that is to include diversity in pitch judging and investment criteria. It is true that there is long-term economic rationality in ensuring diversity in this way, so I think it is important to clearly state this and work on it.” (Mr. Nagura)

“It would be great if we could educate young people from an early age, society would accept failure, and more young people would be willing to take risks. Even if they do, there are cases where they are not able to clearly convey the merits of their business.

It may be good to be able to properly visualize and verbalize how much impact (economic value and social effects) your company is creating in solving social issues through its business.. The impact measurement and management methods of impact investment are useful for organizing business advantages and using data to improve the business.” (Mr. Huang)

The gender gap issue is something that society as a whole must consider, not just those who are thinking of starting a business. In order for the Japanese economy to grow and produce results, it is necessary for each person to change their mindset.

MASHING UP SUMMIT 2022

How to change the gender gap in the startup/VC industry?

Atsuko Horie (President and CEO, Thrill), Kathy Matsui (General Partner, MPower Partners), Masaru Nagura (General Manager, CIC Tokyo), Chunmei Huang (Managing Director, Shinsei Corporate Investment)

Reprinted from MASHING UP (Released on May 17, 2022)

Yukari Shimada:Writer. After working at an advertising agency, he entered the publishing industry. She interviews and writes for magazines, books, websites, corporate PR magazines, etc., focusing on healthcare, fortune telling, and social issues. Her basic stance, the point of view of coverage is to “live better”.