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There are so few women running startups because investors keep asking them these questions

There are so few women running startups because investors keep asking them these questions
Quartz
By Oliver Staley
Published: June 28, 2017

The gender imbalance in Silicon Valley is well documented. US tech companies are so dominated by men in large part because the vast majority of investment venture capital —nearly 98%— flows to firms founded by men.

Women are the majority owners of 38% of all US business, so it’s not a question of a lack of entrepreneurial energy. They’re consistently passed over by venture capitalists because investors are looking for reasons why they will fail, and not why they’ll succeed, according to a new study.

When questioned by investors in pitch meetings, women are typically asked how they will prevent losses. Men, by contrast, are more likely to be asked about their company’s potential, according to a paper titled “We Ask Men to Win and Women Not to Lose,” to be published by the Academy of Management Journal. And venture capitalists are more likely to invest when they’re excited about a startup’s potential, not when they’re focused on minimizing its loss.

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