Female Entrepreneurs > Male

Why I like working with Female Entrepreneurs MORE than Male Entrepreneurs

Women outperform men in business and usually by a significant margin. To the point where it is becoming increasingly clear to me why God created women second; He didn’t get it right the first time.

Our team has worked with over 1,500 entrepreneurs over the past 12 years. Out of my top 100 favorite partners, a majority of them are women. Why?

  1. They Focus on Details
  2. Listening to their Customers Comes Naturally
  3. They Follow Through
  4. Their Ego isn’t a Driving Factor
  5. They’re Better Leaders
  6. They Work Better with a Team

Guess what, the data backs it up.

For innovative companies, female led private companies lead to an average a 35% higher return on investment than their male counterparts.

Further research backs it up, showing women founded companies backed by VC’s utilize 1/3rd less committed capital to achieve comparable results. They also return a 34% higher return to shareholders. 

A 10 year SBA backed study between 2000-2010 found that VC firms that invest in women owned businesses performed better than men led businesses. Read it here.

According to First Round Capital’s own analysis,female leadership impacted returns by as much as 65%. I have seen this time and again. Women are better communicators and seemingly have no problem getting the best out of their employees.

Elizabeth Hu, of Business Insider, reports women generate a 0.78 return on every dollar invested vs. 0.31 for men. Ouch.

So, why do we even bother working with male led companies? There are more of them. While business start ups have increased dramatically over the past 20 years by women (prior to 1988, women apparently needed a male co-signor on any loans, what???), the majority of the increase is for solo based businesses in industries not feasible for venture backing.

Why did I write this article? In my own analysis of the companies I’ve most enjoyed being a part of helping build, I noticed a trend heavily in the favor of female entrepreneurs. Both based on the character and the results.

One of the favorite entrepreneurs I’ve worked with of all time has been an entrepreneur named Ashley Whitman, the founder of Cappy Bug, LLC (Romp & Roost). She is a true representation of a great female entrepreneur and I’ve been honored to work with her for 4 years come September. 

Read more about me and why I decided to become an entrepreneur here!