Venture Capital Human Capital Report | Jan – June 2010
Jan to June 2010 – Venture Capital Activity Report
TABLE OF CONTENTS
RATIONALE FOR THIS REPORT 2
DATA SET, DEFINITIONS AND METHODOLOGY 3
ABOUT CB INSIGHTS 4
PART 1 – RACE, AGE AND NUMBER OF FOUNDERS
1 RACE 6
2 AGE & EXPERIENCE 15
3 NUMBER OF FOUNDERS 22
PART 2 – GENDER AND EDUCATION
4 GENDER 28
5 EDUCATION 35
• TOP SCHOOLS 36
• MBA VS. MS 41
• HIGHEST LEVEL OF EDUCATION 48
© 2010, CB Insights. All rights reserved. For more information about CB Insights, please email info@cbinsights.com.
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2 Venture Capital Human Capital Report | Jan – June 2010
Rationale for this Report
Why measuring the Human Capital behind Venture Capital is important
Venture capital is a critical lever in the United States to spur innovation, entrepreneurship and
economic growth. As a result, there is understandably a significant amount of attention to and
celebration of deals and dollars of funding. There are quarterly recaps of aggregate deal and dollar
data and trends which receive a considerable amount of attention. In fact, we publish the first report
every quarter with these results.
But when we ask venture capitalists what gets them excited about the young, emerging, and often
unproven companies in which they invest, we never hear about deals and dollars. Rather, the first
answer is frequently “the team” or “the founders”. This demonstrates just how crucial human capital
is in VC investment decision-making.
Despite the importance of people in the venture capital equation, there is a dearth of data-driven
insight and information about the entrepreneurs and founders behind these companies.
That was the impetus for this report.
In this first-ever CB Insights Venture Capital Human Capital Report, we are applying the same rigor
we apply to our quarterly tally of deals and dollars to provide an objective, data-driven perspective
into the people dimension behind the deals and dollars we so often read about.
Part 1 of the Venture Capital Human Capital report looks specifically at three characteristics related
to founders of venture-backed companies, specifically: race, age & experience and the number of
founders per company. Part 1 of this report begins on page 6.
Part 2 of the report examines the gender and educational background /pedigree of founders. Part 2
of the report begins on page 28.
We think you’ll find this look into Venture Capital’s Human Capital interesting, enlightening, and a
catalyst for conversation and maybe even some spirited debate. If you have any questions,
comments, ideas or if we can assist in any way, please be in touch..
Best,
The CB Insights team
http://www.cbinsights.com
info@cbinsights.com
Twitter @cbinsights
www.cbinsights.com
3 Venture Capital Human Capital Report | Jan – June 2010
Data Set, Definitions & Methodology
How we compiled the Human Capital Venture Capital Report
Sample – This report focuses on the founders of private, early-stage internet companies that raised
their first round of institutional venture capital funding in the first six months of 2010. These were
Seed or Series A investments as compiled and contained in the CB Insights database.
Data Availability – CB Insights tracked 185 Seed VC and Series A investments in internet
companies in the first half of 2010. We also have profiles containing biographies on founders of
companies on CB Insights. Because of varying levels of data availability on founders, this report
contains CB Insights’ data on 165 of those companies and their respective founders.
Ethnic/Racial Composition – Our determination of race and ethnicity of founders is driven
algorithmically by data CB Insights has created on last names which leverages US Census Data in
addition to several other sources. In cases where ethnicity or race was not conclusively provided
by our algorithm, we employed human tagging. In cases where we discuss ethnicity, these
statistics reflect the Founders’ ethnicities and not the country they were born in.
The terms South Asian and East or Southeast Asian are used in the report. For clarity, South Asia
is comprised of India, Pakistan, Bangladesh, Nepal, Bhutan, Maldives and Sri Lanka.
East/Southeast Asia is comprised of Myanmar, Cambodia, Laos, Thailand, Vietnam, Malaysia,
Indonesia, Brunei, Philippines, China, Japan, North Korea, South Korea, Taiwan, Mongolia, Macau,
and Hong Kong.
Gender Composition – Our determination of gender is driven algorithmically by data CB Insights
has created. In cases where gender was not conclusively provided by our algorithm, we employed
human tagging.
Definition of term “mixed” – The term “mixed” is employed in various graphs related to gender,
race and ethnicity in part 1 and part 2 of the report. A “Mixed Gender” team is used to indicate that
a founding team consists of both female and male founders. A “Mixed Race” team indicates for
example that a team is composed of White and Black co-founders.
www.cbinsights.com
4 Venture Capital Human Capital Report | Jan – June 2010
What Smart Investors, Bankers and
Entrepreneurs Use to Get Ahead…
With CB Insights you can access deep private company info that was once exclusively
available behind prohibitively expensive paywalls.
CB Insights is accessible for free by visiting http://www.cbinsights.com
73,000+ Private Company Profiles. Coverage Universe
Over 73,000 high value private
company profiles across industries and • Venture Capital – 1999 to present
sectors. Medical devices to • Angel Investment
mobile. Industrial to internet. • Private Equity
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From Angel to Private Equity. • Incubators – Over 300
Angel investment to venture capital to • Middle Market Private Companies
private equity to government funding to
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Company & Investor Updates via Email. • Mobile & Telecom
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Add companies and investors of • Energy & Utilities
interest to your CBI Watchlist and get • Computer Hardware & Services
notified of changes and updates • Healthcare
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Management & Board Information • Business Products & Services
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Learn about the people behind the • Electronics
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team as well as board of directors. Equipment
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which allow you to manipulate data
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5 Venture Capital Human Capital Report | Jan – June 2010
Get Started for Free with CB Insights
Basic membership on CB Insights is free. Just visit http://www.cbinsights.com. You
can also connect with us via any of the following.
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Follow us @cbinsights Click here to receive our weekly
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6 Venture Capital Human Capital Report | Jan – June 2010
Q1 & Q2 2010 Venture Capital Human Capital
RACE
www.cbinsights.com
7 Venture Capital Human Capital Report | Jan – June 2010
Racial Composition of VC-Backed Co. Founders vs. Census
Race - US Population vs. Founders
(Internet Seed & Series A - Jan to June 2010)
87%
77%
11% 12%
7%
4%
1% 1%
White Black Asian American Indian Other Race
US Population (18+) Founders
www.cbinsights.com
Sample size for the above graph : n=319
www.cbinsights.com
8 Venture Capital Human Capital Report | Jan – June 2010
87% of Founders are White
Asians comprise the second largest contingent of founders.
National - Founders' Race
(Internet Seed & Series A - Jan to June 2010)
Black
Asian 1%
Pacific
Islander
12%
White
87%
www.cbinsights.com
Cali - Founders' Race Mass - Founders' Race
(Internet Seed & Series A - Jan to June 2010) (Internet Seed & Series A - Jan to June 2010)
Asian
Asian
Pacific
Pacific
Islander
Islander
13%
18%
White White
82% 87%
www.cbinsights.com www.cbinsights.com
New York - Founders' Race
(Internet Seed & Series A - Jan to June 2010)
Asian
Pacific
Islander
11%
White
89%
www.cbinsights.com
Sample sizes for the above graphs (clockwise): n=319, n=30, n=55, n=141. Data on pages 6 and 7 reflect the race of individual founders. Pages 8-12
detail the racial composition of the founding team.
www.cbinsights.com
9 Venture Capital Human Capital Report | Jan – June 2010
Near-even Split Amongst Asian Founder Ethnicities
Nationally, South Asian and East/Southeast Asian founders are funded to a similar
extent. Massachusetts’ most skewed in favor of founders of South Asian descent.
Asian Founders - South vs. East/Southeast
(Internet Seed & Series A - Jan to June 2010)
East/Southeast
Asian
South Asian 46%
54%
www.cbinsights.com
Asian Founders in the Big Three States
(Internet Seed & Series A - Jan to June 2010)
52.0% 50.0%
75.0%
48.0% 50.0%
25.0%
California Massachusetts New York
East/Southeast Asian South Asian
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=39, n=35. Data on pages 6 and 7 reflect the race of individual founders. Pages 8-12 detail the racial
composition of the founding team.
www.cbinsights.com
10 Venture Capital Human Capital Report | Jan – June 2010
83% of Teams are All-White. All-Asian Teams Raise More $.
89% of founding teams are composed of a single race. All-Asian founding teams raise
the largest rounds.
Founding Team Demographics - Race
(National Internet Seed & Series A - Jan to June 2010)
All Asian Pacific
5% All Black
1%
Mixed
11%
All White
83%
www.cbinsights.com
Founding Team Racial Composition vs.
Median Funding Received ($M)
(National Internet Seed & Series A - Jan to June 2010)
$4.0
NATIONAL
$2.3 $2.2
$1.3
All Asian Pacific All White Mixed All Black
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=160, n=159. Data on pages 6 and 7 reflect the race of individual founders. Pages 8-12 detail the
racial composition of the founding team.
www.cbinsights.com
11 Venture Capital Human Capital Report | Jan – June 2010
77% of Cali Founding Teams are All-White
Mixed race teams come in 2nd, making up 13% of the founding teams. Asian teams
raise larger funding rounds than mixed or all-white founding teams.
Founding Team Demographics - Race
(California Internet Seed & Series A - Jan to June 2010)
Mixed All Asian
13% Pacific
10%
All White
77%
www.cbinsights.com
Founding Team Racial Composition vs.
Median Funding Received ($M)
(California Internet Seed & Series A - Jan to June 2010)
$4.4
$3.5
CALIFORNIA
$3.1
All Asian Pacific All White Mixed
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=62, n=62. Data on pages 6 and 7 reflect the race of individual founders. Pages 8-12 detail the racial
composition of the founding team.
www.cbinsights.com
12 Venture Capital Human Capital Report | Jan – June 2010
81% of Massachusetts Founding Teams are All-White
Mixed race teams come in 2nd, making up 13% of the founding teams. All-white
founding teams raise larger funding rounds than mixed or all-Asian founding teams.
Founding Team Demographics - Race
(Massachusetts Internet Seed & Series A - Jan to June 2010)
All Asian Pacific
6%
Mixed
13%
All White
81%
www.cbinsights.com
Founding Team Racial Composition vs.
Median Funding Received ($M)
(Massachusetts Internet Seed & Series A - Jan to June 2010)
$2.1
MASSACHUSETTS
$1.6
$0.8
All Asian Pacific All White Mixed
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=16, n=16. Data on pages 6 and 7 reflect the race of individual founders. Pages 8-12 detail the
racial composition of the founding team.
www.cbinsights.com
13 Venture Capital Human Capital Report | Jan – June 2010
83% of NY Founding Teams are All-White
Of Big Three States, NY has highest percentage of all white founding teams and
lowest proportion of all-Asian founding teams. All-white teams raised most.
Founding Team Demographics - Race
(New York Internet Seed & Series A - Jan to June 2010)
All Asian Pacific
3%
Mixed
14%
All White
83%
www.cbinsights.com
Founding Team Racial Composition vs.
Median Funding Received ($M)
(New York Internet Seed & Series A - Jan to June 2010)
$2.8
$2.0
NEW YORK
$0.8
All Asian Pacific All White Mixed
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=30, n=30. Data on pages 6 and 7 reflect the race of individual founders. Pages 8-12 detail the racial
composition of the founding team.
www.cbinsights.com
14 Venture Capital Human Capital Report | Jan – June 2010
All-White Teams Predominant, Followed by Asian Teams
Cali sees highest proportion of all-Asian teams. Racial composition of founding teams
and amount raised show no trend across Big Three States.
Comparison of Founding Team Demographics
- Race
(Internet Seed & Series A - Jan to June 2010)
77% 81%
83%
13%
14% 13%
3% 10% 6%
New York California Massachusetts
All Asian Pacific Mixed All White
www.cbinsights.com
Founding Team Racial Composition vs.
Median Funding Received ($M)
(Internet Seed & Series A - Jan to June 2010)
$4.4
$3.5
$3.1
$2.8
$2.0 $2.1
$1.6
$0.8 $0.8
New York California Massachusetts
All Asian Pacific Mixed All White
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=108, n=108. Data on pages 6 and 7 reflect the race of individual founders. Pages 8-12 detail the
racial composition of the founding team.
www.cbinsights.com
15 Venture Capital Human Capital Report | Jan – June 2010
Q1 & Q2 2010 Venture Capital Human Capital
AGE & EXPERIENCE
www.cbinsights.com
16 Venture Capital Human Capital Report | Jan – June 2010
Wunderkinds Not the Norm. Avg Founding Team is 35-44.
While 48% of the founding teams fall within the 35-44 average age range, companies
with an average age in the range of 26-34 have the highest median funding.
Founding Team Demographics - Average Age
(National Internet Seed & Series A - Jan to June 2010)
18-25
4%
45-54
19%
26-34
29%
35-44
48%
www.cbinsights.com
Founding Team Age Composition vs. Median
Funding Received ($M)
(National Internet Seed & Series A - Jan to June 2010)
$2.5
$2.4
$2.0
NATIONAL
$1.4
18-25 26-34 35-44 45-54
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=114, n=114
www.cbinsights.com
17 Venture Capital Human Capital Report | Jan – June 2010
California Founding Team Ages Mirror National Trend
California’s founding teams’ age ratios are comparable to national statistics. 26-34
year old teams raise the most funding. No founding teams average 18-25 in Cali.
Founding Team Demographics - Average Age
(California Internet Seed & Series A - Jan to June 2010)
45-54
18%
26-34
33%
35-44
49%
www.cbinsights.com
Founding Team Age Composition vs. Median
Funding Received ($M)
(California Internet Seed & Series A - Jan to June 2010)
$4.3
$3.5
$3.2
CALIFORNIA
26-34 35-44 45-54
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=45, n=45
www.cbinsights.com
18 Venture Capital Human Capital Report | Jan – June 2010
Massachusetts Founding Teams Tend to be Older
Average age of Mass teams most heavily favors older teams. The youngest and oldest
teams raise the largest funding rounds.
Founding Team Demographics - Average Age
(Massachusetts Internet Seed & Series A - Jan to June 2010)
18-25
8%
26-34
15%
45-54
46%
35-44
31%
www.cbinsights.com
Founding Team Age Composition vs. Median
Funding Received ($M)
(US Internet Seed & Series A - Jan to June 2010)
$2.1 $2.1
MASSACHUSETTS
$1.3
$1.2
18-25 26-34 35-44 45-54
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=13, n=13
www.cbinsights.com
19 Venture Capital Human Capital Report | Jan – June 2010
New York Fundings Favor Young
Of the Big Three, NY sees the most teams with an average age of 18-25. In general,
the age of founding teams in NY is lower than their Big Three brethren.
Founding Team Demographics - Average Age
(New York Internet Seed & Series A - Jan to June 2010)
45-54 18-25
14% 10%
26-34
38%
35-44
38%
www.cbinsights.com
Founding Team Age Composition vs. Median
Funding Received ($M)
(New York Internet Seed & Series A - Jan to June 2010)
$4.0
$3.4
$2.8
NEW YORK
$2.3
18-25 26-34 35-44 45-54
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=21, n=21
www.cbinsights.com
20 Venture Capital Human Capital Report | Jan – June 2010
New York and Mass See Whiz Kid Teams Get Funded
Mass companies are generally led by older founding teams, but do see funding to
young teams as well. Funding received and average age show no clear relationship.
Comparison of Founding Team Demographics
- Average Age
(Internet Seed & Series A - Jan to June 2010)
14% 18%
46%
38%
49%
31%
38%
33% 15%
10% 8%
New York California Massachusetts
18-25 26-34 35-44 45-54
www.cbinsights.com
Founding Team Age Composition vs. Median
Funding Received ($M)
(Internet Seed & Series A - Jan to June 2010)
$4.3
$4.0
$3.4 $3.5
$3.2
$2.8
$2.3
$2.1 $2.1
$1.3 $1.2
New York California Massachusetts
18-25 26-34 35-44 45-54
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=79, n=79
www.cbinsights.com
21 Venture Capital Human Capital Report | Jan – June 2010
Wanted: Experienced Founders
39% of founders were formerly CEOs/Founders which supports the idea that VCs back
experience. Sales/Marketing and Product Mgmt/Dev are common previous roles.
Former Title - Breakdown of Founders
(National Internet Seed & Series A - Jan to June 2010)
Consultant
Manager 4%
5%
Sr. VP
5%
Other Title
VP 28%
9%
Director
10%
CEO/Founder
39%
www.cbinsights.com
Former Role - Breakdown of Founders
(National Internet Seed & Series A - Jan to June 2010)
Strategy
4%
Software
6%
Business
Development
8%
Other Role
Engineering 46%
11%
Product
Management &
Development Sales &
12% Marketing
13%
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=285, n=114
www.cbinsights.com
22 Venture Capital Human Capital Report | Jan – June 2010
Q1 & Q2 2010 Venture Capital Human Capital
NUMBER OF FOUNDERS
www.cbinsights.com
23 Venture Capital Human Capital Report | Jan – June 2010
Going Solo and Raising VC are Not Mutually Exclusive
Although the majority of companies have two or more founders, over a third are led by
one founder. More founders does not necessarily result in larger funding rounds.
# of Founders per Company
(National Internet Seed & Series A - Jan to June 2010)
Four
4%
Three
19% One
37%
Two
40%
www.cbinsights.com
# of Founders per Company vs. Median
Funding Received ($M)
(National Internet Seed & Series A - Jan to June 2010)
$3.0
$2.5
NATIONAL
$2.1 $2.1
One Two Three Four
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=161, n=161
www.cbinsights.com
24 Venture Capital Human Capital Report | Jan – June 2010
Two-Founder Companies are the Norm in California
California sees more than half of funded companies with two founders. Funding
amounts show no relationship to number of founders.
# of Founders per Company
(California Internet Seed & Series A - Jan to June 2010)
Four
5% One
20%
Three
24%
Two
51%
www.cbinsights.com
# of Founders per Company vs. Median
Funding Received ($M)
(California Internet Seed & Series A - Jan to June 2010)
$5.8
CALIFORNIA
$4.0
$3.1
$2.0
One Two Three Four
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=63, n=63
www.cbinsights.com
25 Venture Capital Human Capital Report | Jan – June 2010
Massachusetts Says OK to Firms Led by One Founder
Of the Big Three States, Massachusetts has the highest proportion of companies with
a single founder. Companies with three founders raise significantly more.
# of Founders per Company
(Massachusetts Internet Seed & Series A - Jan to June 2010)
Four
6%
Three
25%
One
56%
Two
13%
www.cbinsights.com
# of Founders per Company vs. Median
Funding Received ($M)
(Massachusetts Internet Seed & Series A - Jan to June 2010)
$3.8
MASSACHUSETTS
$2.0
$1.1 $1.0
One Two Three Four
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=16, n=16
www.cbinsights.com
26 Venture Capital Human Capital Report | Jan – June 2010
Flying Solo in New York Gets You More Money?
Majority of New York companies have either 1 or 2 founders. However, companies
with one founder raise significantly more money than those with 2 or 3 founders.
# of Founders per Company
(New York Internet Seed & Series A - Jan to June 2010)
Three
17%
One
40%
Two
43%
www.cbinsights.com
# of Founders per Company vs. Median
Funding Received ($M)
(New York Internet Seed & Series A - Jan to June 2010)
$4.0
$2.1
NEW YORK
$1.5
1 2 3
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=30, n=30
www.cbinsights.com
27 Venture Capital Human Capital Report | Jan – June 2010
Individual Founder-Led Firms Not the Norm in California
NY and Cali both favor founding duos, while Mass founders going solo do well.
Median funding across Big Three shows no trend related to number of founders.
Comparison of # of Founders per Company
(Internet Seed & Series A - Jan to June 2010)
5% 6%
17%
24% 25%
43% 13%
51%
56%
40%
20%
New York California Massachusetts
One Two Three Four
www.cbinsights.com
# of Founders per Company vs. Median
Funding Received ($M)
(Internet Seed & Series A - Jan to June 2010)
$5.8
$4.0 $4.0
$3.8
$3.1
$2.1 $2.0 $2.0
$1.5
$1.1 $1.0
New York California Massachusetts
One Two Three Four
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=109, n=109
www.cbinsights.com
28 Venture Capital Human Capital Report | Jan – June 2010
Q1 & Q2 2010 Venture Capital Human Capital
GENDER
www.cbinsights.com
29 Venture Capital Human Capital Report | Jan – June 2010
92% of Founders are Male
Of the Big Three States for venture capital, Massachusetts sees the highest proportion
of female founders.
National - Founders' Gender
(Internet Seed & Series A - Jan to June 2010)
Female
8%
Male
92%
www.cbinsights.com
Cali - Founders' Gender Mass - Founders' Gender
(Internet Seed & Series A - Jan to June 2010) (Internet Seed & Series A - Jan to June 2010)
Female
6%
Female
27%
Male Male
94% 73%
www.cbinsights.com www.cbinsights.com
New York - Founders' Gender
(Internet Seed & Series A - Jan to June 2010)
Female
7%
Male
93%
www.cbinsights.com
Sample sizes for the above graphs (clockwise): n=319, n=30, n=55, n=141. These percentages represent the portion of individual founders who are
male or female.
www.cbinsights.com
30 Venture Capital Human Capital Report | Jan – June 2010
Most Teams are All-Male. Mixed Teams Better Funded.
87% of companies have all -male founding teams. While all-female and all-male teams
raised similar funding rounds, mixed gender teams raised larger rounds.
Founding Team Demographics - Gender
(National Internet Seed & Series A - Jan to June 2010)
All Female
6%
Mixed
8%
All Male
86%
www.cbinsights.com
Founding Team Gender Composition vs.
Median Funding Received ($M)
(National Internet Seed & Series A - Jan to June 2010)
$4.0
NATIONAL
$2.2 $2.2
Mixed All Male All Female
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=161, n=161. This page and the remaining pages in the Gender portion of this report detail the
composition of founding teams by gender.
www.cbinsights.com
31 Venture Capital Human Capital Report | Jan – June 2010
89% of Cali Founding Teams are All-Male
Only 3% of founding teams are all-female. Mixed gender teams, at 8% of founding
teams, raise the largest median funding rounds.
Founding Team Demographics - Gender
(California Internet Seed & Series A - Jan to June 2010)
All Female
3%
Mixed
8%
All Male
89%
www.cbinsights.com
Founding Team Gender Composition vs.
Median Funding Received ($M)
(California Internet Seed & Series A - Jan to June 2010)
$4.2
$3.5
$2.0
CALIFORNIA
Mixed All Male All Female
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=64, n=64
www.cbinsights.com
32 Venture Capital Human Capital Report | Jan – June 2010
Almost 1/3 of Mass Founding Teams Are All-Female
Mass sees the most all-female founding teams. Mixed gender teams raise higher
funding rounds compared to all-male or all-female founding teams.
Founding Team Demographics - Gender
(Massachusetts Internet Seed & Series A - Jan to June 2010)
Mixed
13%
All Female
31%
All Male
56%
www.cbinsights.com
Founding Team Gender Composition vs.
Median Funding Received ($M)
(Massachusetts Internet Seed & Series A - Jan to June 2010)
$3.3
MASSACHUSETTS
$2.0
$1.9
Mixed All Male All Female
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=16, n=16
www.cbinsights.com
33 Venture Capital Human Capital Report | Jan – June 2010
NY Founding Teams are Primarily Male
Of the Big Three, NY has the largest portion of all-male founding teams.
Founding Team Demographics - Gender
(New York Internet Seed & Series A - Jan to June 2010)
All Female
3%
Mixed
7%
All Male
90%
www.cbinsights.com
Founding Team Gender Composition vs.
Median Funding Received ($M)
(New York Internet Seed & Series A - Jan to June 2010)
$4.5
NEW YORK
$2.3
$0.4
Mixed All Male All Female
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=30, n=30
www.cbinsights.com
34 Venture Capital Human Capital Report | Jan – June 2010
Mass Sees More Female Teams than Cali or NY
Mixed teams raise larger rounds in Cali and Mass. All-female teams make up about
3% of total teams in both New York and California.
Comparison of Founding Team Demographics
- Gender
(Internet Seed & Series A - Jan to June 2010)
56%
90% 89%
31%
3% 3%
13%
7% 8%
New York California Massachusetts
Mixed All Female All Male
www.cbinsights.com
Founding Team Gender Composition vs.
Median Funding Received ($M)
(Internet Seed & Series A - Jan to June 2010)
$4.5
$4.2
$3.5
$3.3
$2.3
$2.0 $2.0
$1.9
$0.4
New York California Massachusetts
Mixed All Female All Male
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=110, n=110
www.cbinsights.com
35 Venture Capital Human Capital Report | Jan – June 2010
Q1 & Q2 2010 Venture Capital Human Capital
EDUCATION
www.cbinsights.com
36 Venture Capital Human Capital Report | Jan – June 2010
Where Are Founders Educated?
EDUCATION
www.cbinsights.com
37 Venture Capital Human Capital Report | Jan – June 2010
Undergrad Institutions in 5 States Spawn 47% of Founders
Of the 17% of founders educated abroad, India-educated founders make up the largest
portion. NY edged out Cali as the top destination for founders to attend undergrad.
Top 6 Locations of Undergraduate Schools
(Founders of Internet Seed & Series A - Jan to June 2010)
New York
15%
Other US
36% California
11%
Pennsylvania
9%
Other Abroad
12% India
Massachusetts
5%
8%
Illinois
4%
www.cbinsights.com
Sample size for the above graph: n=266
www.cbinsights.com
38 Venture Capital Human Capital Report | Jan – June 2010
Cornell and Stanford Undergrad Generate Most Founders
The Ivy League is well represented amongst schools from which at least four company
founders emerged. Schools with strong engineering programs are also popular.
Sample size for the above table: n=263
www.cbinsights.com
39 Venture Capital Human Capital Report | Jan – June 2010
Grad Degree Founders See Mass and Cali Take Honors
Significant portion of founders with graduate degrees emerge from Mass and Cali.
Grad school locations much more concentrated than those of undergrad institutions.
Top 5 Locations of Graduate Schools
(Founders of Internet Seed & Series A - Jan to June 2010)
Other US
24% Massachusetts
24%
Other Abroad
13%
California
21%
Illinois
5% France
5% New York
8%
www.cbinsights.com
Sample size for the above graph: n=132
www.cbinsights.com
40 Venture Capital Human Capital Report | Jan – June 2010
Harvard Graduates More Founders than Stanford
Harvard (primarily MBA graduates) heads up the class for grad degrees. The Ivy
League grad schools are less represented than their undergrad programs.
Sample size for the above graph: n=132
www.cbinsights.com
41 Venture Capital Human Capital Report | Jan – June 2010
Do More Founders Study Business or Science?
EDUCATION
www.cbinsights.com
42 Venture Capital Human Capital Report | Jan – June 2010
MBAs Shown Love by Venture Capitalists
MBAs make up over 40% of founders with advanced degrees. Cali and Mass exhibit
similar characteristics. NY has a high proportion of founders who’ve studied law.
National - Founders' Type of Master's
(Internet Seed & Series A - Jan to June 2010)
MBA & MS
4% Law
9%
MS MBA
32% 55%
www.cbinsights.com
Cali - Founders' Type of Master's Mass - Founders' Type of Master's
(Internet Seed & Series A - Jan to June 2010) (Internet Seed & Series A - Jan to June 2010)
Law MBA & MS
7% 10%
MBA & MS
7%
MBA
48% MBA
MS 50%
MS
40%
38%
www.cbinsights.com www.cbinsights.com
NY - Founders' Type of Master's
(Internet Seed & Series A - Jan to June 2010)
Law
29%
MBA
MS 64%
7%
www.cbinsights.com
Sample sizes for the above graphs (clockwise): n=95, n=10, n=14, n=44
www.cbinsights.com
43 Venture Capital Human Capital Report | Jan – June 2010
All-MBA Teams are the Majority and Raise More
Founding teams that consist of members with solely an MBA(s) are not only the
majority, but also receive the highest median funding.
Founding Team Demographics - MBA vs MS
(National Internet Seed & Series A - Jan to June 2010)
MBA & MS
14%
MS
28% MBA
58%
www.cbinsights.com
Founding Team MBA/MS Composition vs.
Median Funding Received ($M)
(US Internet Seed & Series A - Jan to June 2010)
$2.8
$2.5
NATIONAL
$1.0
MBA MS MBA & MS
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=67, n=67
www.cbinsights.com
44 Venture Capital Human Capital Report | Jan – June 2010
Founding Teams with MBA & MS Raise More in Cali
50% of founding teams in Cali have MBA only. Teams with an MBA and MS raise
more than teams with just an MS or just an MBA.
Founding Team Demographics - MBA vs MS
(California Internet Seed & Series A - Jan to June 2010)
MBA & MS
16%
MBA
50%
MS
34%
www.cbinsights.com
Founding Team MBA/MS Composition vs.
Median Funding Received ($M)
(California Internet Seed & Series A - Jan to June 2010)
$5.0
$4.3
CALIFORNIA
$3.1
MBA MS MBA & MS
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=32, n=32
www.cbinsights.com
45 Venture Capital Human Capital Report | Jan – June 2010
57% of Mass Founding Teams Have an MS Degree
Of the Big Three States, Mass has the highest proportion of founding teams with an
MS degree. 72% of teams have an MBA. MS teams raise the largest rounds.
Founding Team Demographics - MBA vs MS
(Massachusetts Internet Seed & Series A - Jan to June 2010)
MBA & MS
29% MBA
43%
MS
28%
www.cbinsights.com
Founding Team MBA/MS Composition vs.
Median Funding Received ($M)
(Massachusetts Internet Seed & Series A - Jan to June 2010)
$3.2
MASSACHUSETTS
$1.6
$0.8
MBA MS MBA & MS
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=7, n=7
www.cbinsights.com
46 Venture Capital Human Capital Report | Jan – June 2010
NY Adv Degree Founding Teams Dominated by MBAs
MBA is the primary advanced degree of founding teams in NY. The MBA teams also
raise modestly more than the MS teams.
Founding Team Demographics - MBA vs MS
(New York Internet Seed & Series A - Jan to June 2010)
MS
13%
MBA
87%
www.cbinsights.com
Founding Team MBA/MS Composition vs.
Median Funding Received ($M)
(New York Internet Seed & Series A - Jan to June 2010)
$3.1
NEW YORK
$2.9
MBA MS
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=8, n=8
www.cbinsights.com
47 Venture Capital Human Capital Report | Jan – June 2010
MBAs Get Love, Especially from NY
Mass sees highest portion of teams with MS degrees. NY skewed (88%) towards
teams consisting of founders with only MBAs.
Comparison of Founding Team Demographics
- MBA vs MS
(Internet Seed & Series A - Jan to June 2010)
43%
50%
88%
28%
34%
29%
13% 16%
New York California Massachusetts
MBA & MS MS MBA
www.cbinsights.com
Founding Team MBA/MS Composition vs.
Median Funding Received ($M)
(Internet Seed & Series A - Jan to June 2010)
$5.0
$4.3
$3.1 $3.2
$2.9 $3.1
$1.6
$0.8
New York California Massachusetts
MBA & MS MS MBA
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=47, n=47
www.cbinsights.com
48 Venture Capital Human Capital Report | Jan – June 2010
What’s the Highest Level of Education of Founders?
EDUCATION
www.cbinsights.com
49 Venture Capital Human Capital Report | Jan – June 2010
Advanced Degrees Optional?
51% of founders hold a Master’s or PhD. Massachusetts has the highest proportion of
founders with advanced degrees – 68% hold a Master’s or PhD degree.
National - Founders' Education Level
(Internet Seed & Series A - Jan to June 2010)
Less than
Undergrad
PhD 2%
7%
Master's
45%
Undergrad
46%
www.cbinsights.com
Cali - Founders' Education Level Mass - Founders' Education Level
(Internet Seed & Series A - Jan to June 2010) (Internet Seed & Series A - Jan to June 2010)
PhD
8% Less than
Undergrad
1%
Master's Undergrad
45% 32%
Undergrad Master's
46% 52% PhD
16%
www.cbinsights.com www.cbinsights.com
NY - Founders' Education Level
(Internet Seed & Series A - Jan to June 2010)
PhD
4% Less than
Undergrad
2%
Master's
47%
Undergrad
47%
www.cbinsights.com
Sample sizes for the above graphs (clockwise): n=274, n=25, n=47, n=124
www.cbinsights.com
50 Venture Capital Human Capital Report | Jan – June 2010
~2/3 of Teams Have at Least 1 Founder with an Adv Degree
Majority of the companies have founding teams that have at least one member who
holds a Master’s or PhD. Median funding and education show little relationship.
Highest Level of Education of Founding Team
(National Internet Seed & Series A - Jan to June 2010)
Less than
Undergrad
3%
Undergrad
33%
Master's
53%
PhD
11%
www.cbinsights.com
Founding Team's Highest Level of Education
vs. Median Funding Received ($M)
(National Internet Seed & Series A - Jan to June 2010)
$4.3
NATIONAL
$2.7
$2.2 $2.0
Less than Undergrad Master's PhD
Undergrad
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=147, n=147
www.cbinsights.com
51 Venture Capital Human Capital Report | Jan – June 2010
72% of Cali Teams Hold a Master’s or PhD
In the first half of 2010, California median funding data suggests that more education
leads to more funding.
Highest Level of Education of Founding Team
(California Internet Seed & Series A - Jan to June 2010)
PhD
15%
Undergrad
28%
Master's
57%
www.cbinsights.com
Founding Team's Highest Level of Education
vs. Median Funding Received ($M)
(California Internet Seed & Series A - Jan to June 2010)
$4.5
$3.8
$3.5
CALIFORNIA
Undergrad Master's PhD
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=61, n=61
www.cbinsights.com
52 Venture Capital Human Capital Report | Jan – June 2010
73% of Mass Founding Teams Have an Advanced Degree
Master’s and PhDs own nearly ¾ of the founding teams in Mass. Teams with Master’s
received the largest median funding rounds in Massachusetts.
Highest Level of Education of Founding Team
(Massachusetts Internet Seed & Series A - Jan to June 2010)
PhD
27% Undergrad
27%
Master's
46%
www.cbinsights.com
Founding Team's Highest Level of Education
vs. Median Funding Received ($M)
(Massachusetts Internet Seed & Series A - Jan to June 2010)
$3.4
MASSACHUSETTS
$2.0
$1.0
Undergrad Master's PhD
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=15, n=15
www.cbinsights.com
53 Venture Capital Human Capital Report | Jan – June 2010
NY Founding Teams with Less Education Raise More $
Relative to Mass and Cali, NY has a larger contingent of teams with no advanced
degrees. Interestingly, education and median funding are negatively correlated in NY.
Highest Level of Education of Founding Team
(New York Internet Seed & Series A - Jan to June 2010)
Less than
Undergrad
PhD
4%
7%
Undergrad
33%
Master's
56%
www.cbinsights.com
Founding Team's Highest Level of Education
vs. Median Funding Received ($M)
(New York Internet Seed & Series A - Jan to June 2010)
$6.0
$2.5
NEW YORK
$2.0
$1.5
Less than Undergrad Master's PhD
Undergrad
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=27, n=27
www.cbinsights.com
54 Venture Capital Human Capital Report | Jan – June 2010
Mass Shows Preference for Advanced Degrees
NY has the most founding teams in which the highest level of education is undergrad
or less. Founding team education and funding show no relationship except in Cali.
Comparison of Founding Team's Highest Level
of Education
(Internet Seed & Series A - Jan to June 2010)
7%
15%
27%
56%
57%
46%
33%
28% 27%
4%
New York California Massachusetts
Less than Undergrad Undergrad Master's PhD
www.cbinsights.com
Founding Team Education Composition vs.
Median Funding Received ($M)
(Internet Seed & Series A - Jan to June 2010)
$6.0
$4.5
$3.8
$3.5 $3.4
$2.5
$2.0 $2.0
$1.5
$1.0
New York California Massachusetts
Less than Undergrad Undergrad Master's PhD
www.cbinsights.com
Sample sizes for the above graphs (top, bottom): n=103, n=103
www.cbinsights.com
55 Venture Capital Human Capital Report | Jan – June 2010
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