The tech giants known as The Magnificent Seven — Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla — all share something in common, beyond driving a disproportionate amount of value into the economy and pushing the S&P 500 to record highs.
They’re all founded and led by men.
That’s not a bad thing, said Pam Kostka, a longtime tech leader who was previously CEO of All Raise, the nonprofit that supports female and non-binary founders. “It’s just statistically impossible that it would have happened organically,” she said.
As technology infuses every aspect of our lives and tech firms become even more impactful across society, Kostka said it’s crucial to have diversity among the people leading these companies.
“We are in a new era,” she said. “This is when the next Amazon, the next Meta will be founded. And I want that to represent the population it serves — that means women, that means people of color.”
Kostka was a featured speaker at an event for limited partners hosted on Tuesday by Graham & Walker, the Seattle-based venture firm that invests in women-founded tech companies in North America.
After earning her MBA at Harvard Business School, Kostka held leadership roles at five different companies that exited, including two IPOs and three acquisitions. She led Bluebox Security as CEO before its acquisition to Lookout in 2016, and then in 2019 became CEO at All Raise.
The percentage of venture capital dollars going to startups led by only female founders hasn’t surpassed 3% over the past decade and has actually decreased in the past few years, despite a bevy of initiatives and efforts helping women launch and invest in new tech companies.
Kostka chalks up the trend to four issues:
Capital: Access to venture capital dollars continues to be a challenge for female founders. Kostka said it’s crucial to see diversification among those who are making investments — just 13% of decision-makers at U.S.-based venture firms (managing $25 million or more, excluding healthcare firms and corporate VCs) are women, according to All Raise.
“If you don’t change the people who are giving out the money, you’re not going to change who they’re investing in,” Kostka said.
A study from Harvard Business Review found that VC firms with more female partners had better returns and more profitable exits.
Kostka also advocates for change at the limited partner level — those who are funding ventures firms. “We have to change where the LP dollars are coming from and the types of firms that they’re investing in,” she said.
Connections: Kostka spoke about the importance of building community and nurturing connections across different networks. She pointed to Graham & Walker, which started as a Facebook group for female entrepreneurs in Seattle and evolved into a venture capital fund that raised $10 million in 2021. “We need to be intentional about how we’re reaching out and creating overlapping networks,” she said.
“You don’t show up to the soccer field with a tennis racket.”
Communication: “I always hate to tell a woman she’s not confident, because she is,” Kostka said. “She’s just up against a lot.”
Kostka said women need to feel empowered to be themselves but also be equipped with communication skills in investor pitches and other meetings.
“You don’t show up to the soccer field with a tennis racket,” she said. “So you got to know what game you’re playing and how it’s played so you can show up as your authentic, bold, and confident self and communicate appropriately.”
Care: The lack of childcare support in the U.S. is not helping working parents, which includes mothers — many who are leaving their jobs so they can take care of children. “We have a looming care crisis,” Kostka said.
The recent venture capital downturn hasn’t helped things, either. “A lot of women are the first people being let go from funds,” said Kostka, a board advisor at Graham & Walker and board director at Seattle pay equity software startup Syndio.
Kostka said it’s also not all on women to help make change. She encouraged male investors in the audience to get involved. And she asked everyone to chip in however they can.
“Take the time and the resources you have and pull somebody up behind you and invest wisely in their success,” Kostka said. “It doesn’t always have to be writing a check. It can be your time, your expertise.”
