cb insights - data diversity roundtable

@cbinsights www.cbinsights.comDiversity Data Roundtable

Data Driving Important Discussions

Wednesday, June 3rd 2015

Diversity Data Roundtable

Galvanize SF


Hi. My name is Jonathan Sherry.

I’m Co-founder at CB Insights.

You can call me Jon.

I tweet @jonathansherry.


@cbinsights

About CB Insights

Backed by the National Science Foundation, CB Insights uses data science and machine learning to help our customers

predict what’s next—their next customer, their next investment, the next market they should attack, the next move of their

competitor or the next company they should acquire.

The world’s leading global corporations

including the likes of Cisco, Salesforce, Castrol

and Gartner as well as top tier VCs including,

NEA, Upfront Ventures, RRE, and FirstMark

Capital rely on CB Insights to make decisions

based on data, not decibels.

To make your life easier, visit

http://www.cbinsights.com

ABOUT CB INSIGHTSA unique combination of data science and machine learning to help you see what’s next.

”A detailed discussion of data collection and how the company parses them is written by CB Insights’ data scientists; it

convincingly tells the story of scalability and accuracy for what they call “The Cruncher.”

From “Predictive Analytics And Novel Visualization Draw Customers To 'Must Have' Data” published April 8, 2015

3

http://www.cbinsights.com/

http://www.forbes.com/sites/avaseave/2015/04/08/predictive-analytics-and-novel-visualization-draw-customers-to-must-have-data/


See what other customers have to say at

http://www.cbinsights.com/customer-love

“Designed by a VC insider who truly knows the space and

understands end-user needs.”

Greg Bae

Investments & Biz Dev

Comcast Ventures

Jack Leeney

Portfolio Manager

Telefonica Ventures

“We're using CB Insights at Salesforce Ventures to analyze

industry trends that are relevant to our strategy. It's helped

improve our efficiency.”

Matt Garratt

Sr. Director, Corporate Development

Salesforce Ventures

“CB Insights provides our team with a holistic and thematic

approach that really captures market activity….we've found CBI to

have the best access for the most accurate market view.”

“We have been looking for a tool that could give us the ability

to track, research and identify investment opportunities. CB

Insights provides this simply and in a simple, easy to use

interface. The depth of information that we get is exactly what

we need. Great product.”

Jonathan Tudor

Ventures Director

Castrol innoVentures

“CB Insights perfectly illustrates what I expect today from such

online services to stay tuned to our fast-changing Tech

Landscape. Accurate and up-to-date data mash-ups, intuitive

UIs, smart data visualization capabilities and direct API access…

all packaged together with straightforward pricing.”

Simon Mencarelli

Senior Manager, Strategic Planning

Dassault Systems

“CB Insights' intuitive user interface, analytical capabilities, and

detailed investment information create a very powerful tool for our

team's research needs.”

Nate D’Anna

Corporate Development

Cisco

A FEW OF OUR HAPPY CUSTOMERSThe most publicly reference-able customers of anyone in the industry

4


“In God we trust, all

others bring data”-William Edwards Deming

@cbinsights www.cbinsights.comDiversity Data Roundtable 6

Venture Capital Human

Capital ReportA data-driven look at the race, age, gender and educational backgrounds of entrepreneurs who

receive venture capital financing


IN THE NEXT 20-30 MINUTES, WE’LL COVER…

1 Report BackgroundRationale behind this report and methodology applied

2 RaceFounder composition and funding raised by race, including White, Black, Asian,

American Indian & other races

3 Age & ExperienceFounder composition and funding raised by age range and former profession

4 EducationFounder composition and funding raised by educational background, including top

schools and undergrad vs. advanced degrees

5 GenderFounder composition and funding raised by gender


REPORT BACKGROUNDRationale behind this report and methodology applied

8


“We invest in teams”- words of wisdom spoken by any self-respecting VC at some point in his or her life time


DATA SET & METHODOLOGYHow we compiled the Human Capital Venture Capital Report

$Seed VC / Series A


RACEFounder composition and funding raised by race, including

White, Black, Asian, American Indian & other races

11


RACIAL COMPOSITION: U.S. POPULATION VS. FOUNDERSA picture says a thousand words

77%

11%

4%1%

7%

87%

1%

12%

White Black Asian American Indian Other Race

Race - US Population vs. Founders(Internet Seed & Series A - Jan to June 2010)

US Population (18+) Founders

www.cbinsights.com


87% OF FOUNDERS ARE WHITEAsians comprise second largest contingent of founders

Asian Pacific

Islander

12%

Black1%

White87%

National - Founders' Race(Internet Seed & Series A - Jan to June 2010)

www.cbinsights.com

Asian Pacific

Islander

18%

White82%

Cali - Founders' Race(Internet Seed & Series A - Jan to June 2010)

www.cbinsights.com

Asian Pacific

Islander

13%

White87%

Mass - Founders' Race(Internet Seed & Series A - Jan to June 2010)

www.cbinsights.com

Asian Pacific

Islander

11%

White89%

New York - Founders' Race(Internet Seed & Series A - Jan to June 2010)

www.cbinsights.com


NATIONAL: ALL-ASIAN TEAMS RAISE THE MOST $89% of founding teams are composed of a single race. All-Asian founding teams raise the largest rounds

$4.0

$2.3 $2.2

$1.3

All Asian Pacific All White Mixed All Black

Founding Team Racial Composition vs. Median Funding Received ($M)

(National Internet Seed & Series A - Jan to June 2010)

www.cbinsights.com

All Asian Pacific5% All Black

1%

All White83%

Mixed11%

Founding Team Demographics - Race(National Internet Seed & Series A - Jan to June 2010)

www.cbinsights.com


STATES: CALIFORNIA MOST DIVERSECali sees highest proportion of all-Asian teams. Racial composition of founding teams and amount raised show no

trend across Big Three States

3% 10% 6%

14%13%

13%

83%77% 81%

New York California Massachusetts

Comparison of Founding Team Demographics - Race

(Internet Seed & Series A - Jan to June 2010)

All Asian Pacific Mixed All White

www.cbinsights.com

$2.0

$4.4

$1.6

$0.8

$3.5

$0.8

$2.8$3.1

$2.1


Founding Team Racial Composition vs. Median Funding Received ($M)


All Asian Pacific Mixed All White

www.cbinsights.com


AGE & EXPERIENCEFounder composition and funding raised by age range and

former profession

16


NATIONAL: WUNDERKINDS NOT THE NORMAverage founding team is 35 to 44 years old, while 26 to 34 year old teams raise the most money

18-254%

26-3429%

35-4448%

45-5419%

Founding Team Demographics - Average Age (National Internet Seed & Series A - Jan to June 2010)

www.cbinsights.com$1.4

$2.5

$2.0

$2.4

18-25 26-34 35-44 45-54

Founding Team Age Composition vs. Median Funding Received ($M)


www.cbinsights.com


STATES: NEW YORK AND MASS BETTER FOR WHIZ KIDSMass companies are generally led by older founding teams, but do see funding to young teams as well. Funding

received and average age show no clear relationship

10% 8%

38%

33% 15%

38%

49%

31%

14% 18%

46%


Comparison of Founding Team Demographics - Average Age


18-25 26-34 35-44 45-54

www.cbinsights.com

$3.4

$2.1$2.3

$4.3

$1.3

$2.8

$3.2

$1.2

$4.0

$3.5

$2.1


Founding Team Age Composition vs. Median Funding Received ($M)


18-25 26-34 35-44 45-54

www.cbinsights.com


WANTED: EXPERIENCED FOUNDERS39% of founders were formerly CEOs/Founders which supports the idea that VCs back experience. Sales/Marketing

and Product Mgmt/Dev are common previous roles

CEO/Founder39%

Director10%

VP9%

Sr. VP5%

Manager5%

Consultant4%

Other Title28%

Former Title - Breakdown of Founders (National Internet Seed & Series A - Jan to June 2010)

www.cbinsights.comwww.cbinsights.com

Sales & Marketing

13%

Product Management & Development

12%

Engineering11%

Business Development

8%

Software6%

Strategy4%

Other Role46%

Former Role - Breakdown of Founders(National Internet Seed & Series A - Jan to June 2010)

www.cbinsights.com


EDUCATIONFounder composition and funding raised by educational

background

20


UNDERGRAD: 47% OF FOUNDERS ACROSS 5 STATESNew York is top location for undergrad followed by Cali, Penn, Mass and Illinois; India largest foreign contingent

New York15%

California11%

Pennsylvania9%

Massachusetts8%

India5%

Illinois4%

Other Abroad12%

Other US36%

Top 6 Locations of Undergraduate Schools(Founders of Internet Seed & Series A - Jan to June 2010)

www.cbinsights.com


UNDERGRAD: CORNELL & STANDFORD TOPSThe Ivy League is well represented among schools from which at least four founders emerged. Schools with strong

engineering programs are also popular


Massachusetts24%

California21%

New York8%

France5%

Illinois5%

Other Abroad13%

Other US24%

Top 5 Locations of Graduate Schools(Founders of Internet Seed & Series A - Jan to June 2010)

www.cbinsights.com

23

GRAD: MASS & CALI TAKE HIGHEST HONORSSignificant portion of founders with graduate degrees emerges from Mass and Cali. Grad school locations much

more concentrated than those of undergrad institutions


GRAD: HARVARD, STANFORD, MIT OUTPACE FIELDWith exception of Harvard, Ivy League is less prevalent for graduate school when it comes to sourcing founders


~2/3 OF TEAMS HAVE 1+ FOUNDERS W ADV DEGREESMajority of the companies have founding teams that have at least one member who holds a Master’s or PhD; median funding raised shows no relation with education

Less than Undergrad

3%

Undergrad33%

PhD11%

Master's53%

Highest Level of Education of Founding Team(National Internet Seed & Series A - Jan to June 2010)

www.cbinsights.com

$4.3

$2.2

$2.7

$2.0

Less than Undergrad

Undergrad Master's PhD

Founding Team's Highest Level of Education vs. Median Funding Received ($M)


www.cbinsights.com


GENDERFounder composition and funding raised by gender

26


92% OF FOUNDERS ARE MALEOf the Big Three States, Massachusetts sees the highest proportion of female founders

Female8%

Male92%

National - Founders' Gender (Internet Seed & Series A - Jan to June 2010)

www.cbinsights.com

Female7%

Male93%

New York - Founders' Gender(Internet Seed & Series A - Jan to June 2010)

www.cbinsights.comwww.cbinsights.com

Female6%

Male94%

Cali - Founders' Gender(Internet Seed & Series A - Jan to June 2010)

www.cbinsights.com

Female27%

Male73%

Mass - Founders' Gender(Internet Seed & Series A - Jan to June 2010)

www.cbinsights.com


MOST FOUNDING TEAMS ALL MALE; MIXED GETS MORE $87% of companies have all -male founding teams. While all-female and all-male teams raised similar funding

rounds, mixed gender teams raised larger rounds

All Female6%

All Male86%

Mixed8%

Founding Team Demographics - Gender(National Internet Seed & Series A - Jan to June 2010)

www.cbinsights.com

$4.0

$2.2 $2.2

Mixed All Male All Female

Founding Team Gender Composition vs. Median Funding Received ($M)


www.cbinsights.com


MASS SEES MORE FEMALE TEAMS THAN CALI OR NYMixed teams raise larger rounds in Cali and Mass. All-female teams make up about 3% of total teams in both New

York and California

7% 8%13%

3% 3%

31%

90% 89%

56%


Comparison of Founding Team Demographics - Gender


Mixed All Female All Male

www.cbinsights.com

$0.4

$4.2

$3.3

$4.5

$2.0 $1.9

$2.3

$3.5

$2.0


Founding Team Gender Composition vs. Median Funding Received ($M)


Mixed All Female All Male

www.cbinsights.com


MEN EXPECT MORE

Special thanks to

for this data


MEN EARN MORE (BUT THE GAP IS SMALLER)

Special thanks to

for this data


THANK YOU

Jonathan Sherry | Co-founder | @jonathansherry | [email protected]

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