Despite the increasing number of women in leadership roles across various industries, navigating male-dominated sectors remains a challenge. This is particularly true in the crypto and Web3 industries, where data suggests that early adopters were predominantly men. However, research has shown that having more women on a founding team provides numerous benefits, such as better communication, increased problem-solving diligence, and insight into female customers. Despite these benefits, gender disparity still persists in the crypto and Web3 industries.
Gender Disparities in Crypto and Web3
A study conducted by Boston Consulting Globe based on a Crunchbase database of nearly 2,800 participants reveals inconsistencies between male and female employees in the crypto and Web3 spaces. The study found that male-only founding teams typically raise four times as much capital as all-female teams, with an average of $30 million compared to just $8 million. Moreover, no company with an all-female team has managed to raise more than $100 million in funding. Additionally, the study found that investment teams focused on Web3 are male-dominated.
It is understandable why many women are reluctant to join or invest in tech startups, given these results. Female founders are included in only 13% of startups within the Web3 ecosystem, and even within this marginal group, only 10% of founding teams have both men and women. The study further revealed that women are concentrated in roles such as Human Resources and marketing and are less likely to engage in development or technical aspects of the crypto ecosystem. They also tend to launch startups leaning towards creative and social segments of Web3, rather than the finance or blockchain sectors.
Steps to Improve Gender Diversity in Crypto and Web3
To improve gender diversity in the crypto and Web3 industries, new projects and startups need to actively seek out female co-founders and leaders, not just to fill a diversity quota but also to gain a valuable perspective and reach a massive target group that has yet to be fully tapped. Emelie Olsson, co-founder of Web3 music and fan engagement platform Corite, emphasizes the need to challenge the gatekeeping mentality that dismisses women as “not understanding” or “not belonging.” Olsson suggests that these outdated attitudes limit potential and hold back innovation.
The study highlights the importance of collecting data on the representation of women and tracking progress, ensuring that women are represented on investment teams, designing inclusive brand experiences, hosting summits that focus on sponsoring events that feature women among speakers, and developing regulations that address gender makeup to increase participation. Chao Cheng-Shorland, CEO of ShelterZoom, recommends that companies look more broadly at where they source talent or invest in startups to get more women involved in Web3. Cheng-Shorland suggests that companies can find success by reaching out to broader networks and backgrounds, including those in education, medicine, real estate, and more.
Conclusion
The crypto and Web3 industries are still in their early stages, and there is time to address gender disparities. Companies must work to attract and retain more women in leadership roles to gain a valuable perspective and tap into a massive target group. To achieve this, it is essential to challenge outdated attitudes, collect data on gender representation, ensure that women are represented on investment teams, design inclusive brand experiences, host summits that feature women among speakers, and develop regulations that address gender makeup. By taking these steps, the crypto and Web3 industries can increase diversity, improve innovation, and unlock new opportunities.
