Diversity and Inclusion in Technology

It's no secret that the tech industry is not as diverse and inclusive as most of us would like. To go beyond just acknowledging this issue, Techstars and Chase Bank wanted to explore what startups ARE doing and are NOT doing to address the issue.

Diversity and Inclusion in Technology

It's no secret that the tech industry is not as diverse and inclusive as most of us would like. To go beyond just acknowledging this issue, Techstars and Chase Bank wanted to explore what startups ARE doing and are NOT doing to address the issue.
Highlights
Diversity is important to 72% of founders, but only 10% are taking action
Diversity is important to 72% of founders, but only 10% are taking action

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Find out where you startup is in the progression toward leadership in diversity.

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Despite the many challenges of running a tech startup, 72% of founders believe building diversity is extremely or very important for their company. Founders who are women or minorities feel more strongly about the value of diversity:
84% of women and 90% of minorities say building diversity is very or extremely important.
(vs. 69% of men and 68% of non-minorities)
About 1 in 10 startups are Diversity Leaders
About 1 in 10 startups are Diversity Leaders
Among the survey respondents:
12%

12% are Diversity Leaders that employ five or more computing professionals who are minorities or women.
56%

The majority (56%) are Diversity Builders employing one to four diverse engineers, programmers and developers.
32%

Almost one-third (32%) of startups are Diversity Planners and have not yet hired tech employees who are women or underrepresented racial and ethnic minorities.
More than six in ten founders say they are very involved in promoting diversity
More than six in ten founders say they are very involved in promoting diversity
61%
Among the respondents, 61% are very involved in promoting diversity at their companies.
96%
Almost all (96%) minority women founders are very involved in promoting diversity, compared with 59% of all other founders.
Tech Diversity Leaders and Builders are more likely to have women or minorities on their board of directors
Tech Diversity Leaders and Builders are more likely to have women or minorities on their board of directors
Among startups with a Board of Directors, 41% of Diversity Leaders and 32% of Diversity Builders have two or more board members who are women or minorities.
Offering parental leave and leave of absence can help startups increase tech diversity
Offering parental leave and leave of absence can help startups increase tech diversity
Diversity Leaders are more likely than Planners to offer parental leave (65% vs. 35% ) and leave of absence (53% vs. 32%).
Leaders
65%
Offer parental leave
Planners
35%
Offer parental leave
Leaders
53%
Leave of absence
Planners
32%
Leave of absence
Why Diversity Matters
Founders identified the advantages to having a diverse workforce including:
81%

81% of all founders say diversity enhances creativity and innovation.
67%

67% of all founders say that diversity improves problem solving.
63%

63% of all founders say that a diverse workforce provides greater access to talent.

However, only 23% of founders say that a diverse workforce improves financial performance.
While founders see advantages to having an inclusive and diverse team, they fail to connect those advantages to improved financial performance. However, research has clearly shown that tech companies led by women are more capital-efficient, achieving 35% higher ROI and 12% higher revenue. When a company commits to creating a diverse workforce, the business is more financially successful.
Diversity Improves Financial Performance
A body of research reveals that companies with high levels of cultural and gender diversity are more innovative and have higher revenue, larger market share, and better employee retention. McKinsey estimates that moving towards gender parity could increase global GDP by $12 trillion in the next 10 years.
According to a 2015 study by Mckinsey & Company, companies that are in the top quartile for diversity have a better chance of receiving above average financial returns than companies that lack diversity.
Bloomberg conducted an analysis of 20,000 venture-backed startups and found that successful tech startups have twice as many women in senior positions as unsuccessful startups.

Technology companies led by women are more capital-efficient, achieving 35% higher ROI.

Large companies with more women in leadership performed significantly better financially with a 41% higher ROE and 56% better operating results.

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