As women, we all know about the pay gap, the wealth gap, and the funding gap, but do you know about the Exit Gap?
According to new research by The Big Exit:
- Less than 1% of businesses that sold were female-founded, and these businesses were, on average, valued 30% lower compared to their male-founded counterparts
- Male-founded businesses in the Technology, Media, and Telecommunications (TMT) sectors were valued 1.5 times higher on average compared to their female-founded counterparts.
- In the consumer sector, male-owned businesses were valued 18% higher than female-owned businesses.
Ultimately, “despite identical businesses being run by a man and a woman, the male-led business is likely to be valued and sold for more.”
What does this tell us about the way the dominant male ecosystem looks at women’s work?
Historically and until this day, women’s work is not as highly valued as men’s, and work less valued by every measure is assigned to women on the basis of sex.
As women, we are fighting a two front war: 1) one against ingrained perceptions and 2) the other against the harsh realities these perceptions create:
1) Perceptions of Women’s Labor: Men often see women's work as consisting largely of traditional, unpaid, invisible tasks such as caregiving for children and elders (care labor), managing household responsibilities (domestic labor), and providing social and emotional support (emotional labor). This association leads to a pervasive implicit bias in professional settings where women, performing at equal or superior levels to their male counterparts, are undervalued and underpaid. In industries dominated by male leadership, such as VC, this bias frequently results in women being paid less for equal or superior work—plain and simple.
2) The Reality Created by These Perceptions: The skewed perceptions men hold, whether consciously or unconsciously, about the value of women’s work perpetuate a cycle that diminishes and devalues their contributions. By translating these biased perceptions into active practices, men not only reinforce, but also legitimize this ongoing cycle of undervaluation. This cycle not only justifies the male-dominated industries continued undervaluation of future women's contributions but also sets a precedent that perpetuates this discriminatory practice towards future female founders. This creates a damaging and self-perpetuating pattern that continues to undermine and marginalize women’s work, reinforcing flawed and discriminatory valuation standards.
Are women paid less because women, and therefore what women do, are less valued by society–or are women and what women do valued less in society because women are paid less, thus command less material clout?
I believe the former is true. Women’s work is valued less, because women are valued less.
What actions is the traditional investment ecosystem taking to address this gender bias?
Cindy Gallop Samantha Katz MAMAMUSE™ Lien De Pau