In a recent Fortune magazine article, "What I Learned From Being a Mom Who Works," Hillary Clinton writes movingly about the struggles she faced 40 years ago. When she learned she was pregnant and asked her boss about her law firm’s maternity leave policy, the reply was that there wasn’t one because no female attorneys ever came back to the office after giving birth. So, she came up with a plan, took time off to bond with newborn Chelsea, and went back to work.
Since then, she says, “Even though the number of women running companies, labs, universities, and philanthropies is growing, it’s still too small. So is the number of women serving in elected office. That means women aren’t always included in decision-making, and their needs and concerns aren’t always reflected in government policy or workplace norms.”
This situation feels especially true in startup culture, where creating cool technologies is something that happens daily. A young woman can be on a level playing field with men for years early in her career. But at highly competitive levels of senior management—and for entrepreneurs trying to raise money for their companies or potential board members seeking seats at public companies—a different dynamic takes place. Entrepreneur and management expert Janice Fraser lays some of the blame for this disparity on what she calls the “Glass Cliff.” Seemingly neutral business processes, like talent reviews, end up pushing women out of the leadership path rather than forward along it, she argues in “Women in Leadership,” a comprehensive assessment of the women-in-leadership vacuum.
When women are held back from achieving their full career potential, their financial success—and ultimately their freedom—is also impeded.
I’m a financial planner, and my job is to help people create, protect, and preserve their wealth. During the research for my books about making smart financial decisions in all phases of startup life, I heard many disturbing stories about the impediments to women’s success. About a third of my 75 interviewees were women, whose positions included venture capitalist, entrepreneur, executive, and attorney; nearly all had stories to tell about the difficulty of being a woman in what is still considered a mostly male space. Indeed, research instigated by former Pinterest engineer Tracy Chou shows that many household tech names have a long way to go in terms of equality.
The Club for Women
A few years ago, the Kauffman Foundation sponsored a TED conference in Long Beach, California. Of about 1,000 attendees, there were 150 male and 19 female entrepreneurs. When questioned over lunch, the 19 explained why they thought so many of their female peers were missing. They cited the cost to attend, fear that investors would think such an event was a waste of money, and the difficulty of leaving children for three days to go do something fun.
Mentorship and networking groups are proven ways to inspire women and pull them up in the ranks. However, attempts to foster female community often run into backlash. A venture capitalist told me that when she was studying at Harvard Business School she noticed her male colleagues connecting through sports, a way to let off steam from the intense academic pressure cooker. She felt left out, so she decided to organize a women’s dinner to help female classmates bond and support each other. The event led her male classmates to feel neglected and angry. She was surprised at what an uproar her one dinner created among the men, who failed to realize that up until that point the women had been left out of many male-only events.
Having It Most
It takes a lot of mental and physical devotion to get to the C-suite, especially in a startup.
A 30-year tech veteran with four successful company IPOs and acquisitions under her belt told me that finding harmony between her career and personal life has always been tough—and she doesn’t have children. “If I had kids, I don’t know if I could have done this. The sad reality is working in a startup is extremely demanding, and the hours are really long. Oh, and often there’s a commute on top of that.”
Many fathers accept that they need to be available nights and weekends, yet women are often considered bad mothers if they do the same. Over and over, my sources told me that women can’t have it all—at least for the time when their children are young. But as Secretary Clinton writes in her piece, having children makes many of us do a better job in our company. Being a parent also gives many us an extra level of empathy for our co-workers, clients, and customers.
In large and small ways, female executives and entrepreneurs can get left out of the conversation, a situation that translates into discrimination in the form of fewer networking opportunities, promotions, and deals. It’s subtle, but guys may just call a buddy to join social events where business deals are done; often it’s the women who don't get invited for ski trips, dinners, or athletic activities. This situation eventually results in less robust personal financial outcomes. But it doesn’t have to be this way.
Strategies for Success
Indeed, Fraser cites research showing that sponsorship of women is a key driver for successful leadership. For female entrepreneurs who are often not invited or unavailable for more casual bonding activities, building a network and creating an advisory board are crucial steps.
Melinda Gates and Sheryl Sandberg both have initiatives in the works to bring more women into business leadership and tech and gender diversity is baked into Freada Kapor Klein’s Project Include. Since more than 90% of VCs and 85% of angel investors are men,[1] and it seems women want to help other women succeed, if you’re a female entrepreneur, consider targeting female VCs as a way to get noticed. Of course, VCs’ primary goal is to make money, and to do so they must invest in companies that they think will do that. So, be prepared to pitch your best idea passionately.
Our economy needs the brainpower of all our citizens. Having more women in executive roles (and in the workforce) helps our nation’s productivity. We can support female leadership at work and give our votes to those who pledge to enact policies that will make standard business practices more equitable for all—men, women, mothers, fathers, and future generations.
[1] Adelson, Scott. “VCS, Angels and Investing in Women: What Are They Not Thinking?” Ecosalon. March 30, 2011.