London start-ups attracting more women than Silicon Valley
Independent research commissioned by Wayra UK, Telefónica Open Future’s digital start-up accelerator, has revealed findings that reinforce London’s position as one of the world’s most diverse start-up ecosystems, as well as key insights into the significant impact diversity is having on the capital’s new and emerging businesses.
- London three times more likely to attract women than Silicon Valley
- Women far more likely to receive funding in the capital then elsewhere in the UK
- 24% of women in London start-ups hold leadership roles
- Women 3.5x more likely to be attracted to a start-up that’s more diverse than men.
startupDNA, which is believed to be the first research project of its kind to analyse inherent and acquired DNA within British start-ups, uncovered some intriguing findings but it’s most startling revelations came when comparisons on gender and ethnicity were made to other major start-up ecosystems.
The research found that London was three times more likely to have women working within its start-up community than both Silicon Valley and Tel Aviv and is hot on the heels of New York City – identified as the world’s leading hub for female entrepreneurs – with over 24% of women identifying themselves as being in leadershiproles. It also found that London was 19% more likely than Silicon Valley & twice more likely than NYC to attract BAME (Black, Asian and Minority Ethnic) individuals.
When comparing the capital to the rest of the UK, the research found London to be the torchbearer
for both fundraising and diversity. Start-ups based in the capital were three and a half times more likely to be VC funded, with female respondents twice more likely to be self-funded and male respondents 61% more likely to be VC funded than elsewhere in the UK. London is also 70% more likely to attract those under the age of 35; over 43% more likely to attract both EEA (European Economic Area) and non-UK/EEA nationals and 58% more likely to attract BAME (Black, Asian and Minority Ethnic) citizens.
Other key findings:
- 30.3% of individuals working in the UK’s start-up ecosystem are women.
- Banking, finance and healthcare start-ups are concentrated in London. Lifestyle, retail & e-
commerce start-ups are more common across the rest of the UK. - Individuals working in London start-ups are 86% more likely to state global reach being a high concern for their business compared to the rest of the UK.
- Those working in London-based start-ups are 50% more likely to speak another language than those in the rest of the UK.
- 79% of respondents work in digital start-ups. 68% of respondents were from London-based start-ups.
- London respondents were 2x more likely to hold a postgraduate qualification than those elsewhere in the UK. Outside of London, individuals are 2.6x more likely to have no university level qualification.
- London-based start-ups were 2x more likely to work together as a whole team as opposed to working alone than elsewhere in the UK.
- London is 41% more likely to have between 2-8 individuals working in a start-up than the
rest of the UK. - Individuals working in London start-ups were 28% more likely to work over 50 hours per week compared to elsewhere in the UK.
Those working within British start-ups believe diversity to be a key driver in their acceleration
with over 78.9% declaring that it has helped their business compete; 75% declaring it has helped
them overcome challenges and 71.5% agreeing it helped them find new markets.
Simon Fanshawe OBE, of astar-fanshawe, the innovative diversity consultants who’ve guided Wayra
from the inception of this project, believes far from being a hindrance, diversity is, in fact, helping the UK create one dominant start-up centre in Europe, similar to Silicon Valley. “What this research tells us is that start-ups would get far more growth, innovation and entry into new markets if there was a more diverse combination of people involved. For too long, cultural differences and even languages were seen as putting the UK at some kind of disadvantage. But this research clearly demonstrates the impact the UK’s rich social makeup is having on the grow
th and performance of our fledgling businesses.”
222 early-stage start-ups, of which 89% of respondents held leadership roles, were surveyed from
across the United Kingdom and Northern Ireland, with 42 organisations, including Innovate Finance,
Virgin Start Up and Mass Challenge UK, targeting businesses through their acceleration programme.
Although the research shows the UK ecosystem embracing diversity, there are some dramatic biases
reflected in participation in different sectors. For instance, no men in the survey reported being
involved in the lifestyle sector and no women reported being part of a banking and finance start-
up. “We are fully aware that a start-up in its infancy must focus on growth if it is to survive and may not fully appreciate the benefits of what diversity can bring.”
Gary Stewart, Director of Wayra UK & Wayra UnLtd, believes accelerators have a responsibility to
young businesses and to the ecosystem in demonstrating how difference can impact performance.
“I passionately believe that if you actively recruit talent from diverse sources, you’ll not only
strengthen your team, you’ll also experience more growth as a result.”
In support of the findings, Gerard Grech, CEO of Tech City UK, commented: “This research proves
once more that the diversity of the UK is its greatest strength. When it comes to London, there
are over 300 languages spoken here, as well as collision of diverse cultures and approaches to business. This amazing interaction has created a truly global capital. Not only does this diversity make London an incredibly vibrant environment in which to live, it’s good for business, as the capital continues to lead Europe in digital innovation, smashing investment records along the way.“
Important links:
– Executive Summary of the Start-Up DNA Report: http://goo.gl/aFd5bz
– Infographic: https://goo.gl/gwPnVE
– StartupDNA.co.uk: http://goo.gl/jjXhMr
About Wayra UK & Wayra UnLtd
Wayra is a start-up accelerator owned by Telefónica. Over the last 3 years, Wayra UK & Wayra UnLtd
start-ups have raised over to $50m, with last year’s cohort raising $10.4m of that total before
reaching demoDay, December 2014. To date, our companies have run 45 trials with Telefónica UK,
with companies like RotaGeek and Quidini being awarded contracts. In 2015, Wayra UK welcomed 22
start-ups into its newly refurbished academy, half of which are being accelerated by Wayra UnLtd, the UK’s first accelerator facility for digital technology social ventures.The social accelerator also tops the UK’s Social Incubator Fund for third-party investment raised.
Wayra first launched in Latin America and Spain in 2011 and there are now 12 Wayra academies in
12 countries in Europe and Latin America. Companies accepted into the Wayra programme receive
funding of up to $50,000 plus office space, mentoring and access to a wider investor network.
About Telefónica Open Future
Telefónica Open Future_ is a global, open program designed to connect entrepreneurs, startups,
investors and public and private organizations worldwide. Its goal is to guide innovation towards the
development of viable projects, using a model that gives visibility to the talent and connect with
organizations, investors and businesses. Telefónica Open Future_ integrates all open innovation initiatives, entrepreneurship, investment and transformation of Telefónica (inter alia Wayra, Amerigo, Telefónica Ventures) and makes available to strategic partners, to develop with them specific support programs entrepreneurship.
