News Summary

As the world celebrates International Women’s Day, significant challenges and progress for women in the Canadian startup and venture capital sectors are highlighted. A report by The Dais at Toronto Metropolitan University reveals a widening pay gap in tech, with men earning $20,000 more than women in 2021 compared to $7,200 in 2016. Despite this, a 2024 Canadian Venture Compensation Report shows women in senior investment roles now earn more than men. However, gender disparity persists at leadership levels, as 31% of firms have no women in leadership roles. Canadian VC firms are making strides in gender diversity, but retention remains an issue, with women and visible minorities struggling to find inclusive environments. Women-founded startups receive a small share of VC investment, only 1.9% in 2022, indicating a need for more inclusive funding practices. Meanwhile, female small business founders are embracing AI, with nearly half believing it will help them compete with larger companies. However, economic uncertainty affects optimism, with only 35% of female founders confident about the Canadian economy. Reports estimate a gap of 150,000 women-led firms needed to meet the federal Women Entrepreneurship Strategy goal, highlighting the potential $180 billion economic contribution from 710,000 ‘missing’ entrepreneurs. Women-owned businesses are predominantly in healthcare, professional services, and retail, with underrepresentation in construction, mining, oil and gas, and transportation. Despite some progress, the representation of women and visible minorities at senior levels in venture firms is still low, with only 31% reporting gender parity.