Digital health companies led by male entrepreneurs are more likely to be venture-backed than women—and these differences become much starker when you look at the intersection of race and ethnicity, according to a new diversity survey.
Black, Hispanic, and Middle Eastern entrepreneurs are more likely to bootstrap their digital health startups or build their businesses without access to venture capital.
Among White and Asian founder respondents, over half are backed by venture investment. Among Black founder respondents, less than a third are venture-backed. Black women founder respondents are the most likely group to have bootstrapped their company (57%) while White men are the least likely (10%), according to investment firm Rock Health’s diversity in digital health report.
According to the survey, 42% of digital health startups had female founders but the data suggests that women digital health founders are less likely to be venture-backed (40% of women founders compared to 62% of men founders).
Access to capital can be a critical success lever for founders looking to grow and scale their companies. Black leaders rate access to capital and investors as more significant barriers to building their companies relative to their White and Asian