A newly released study has found that lack of diversity continues to be an issue in blockchain and Web3. The study produced by Boston Consulting Group, found that only 13% of founding teams include at least one woman. In addition, only 3% have an all female founding team.
Web3 projects, creating innovative new platforms utilizing blockchain technologies, cryptocurrencies, and the metaverse, have the potential to revolutionize various global industries and shape the future of the digital world. However, in one crucial aspect, these companies appear to be lagging behind: there is a significant gender disparity among their founders and investors. This disparity is even greater than that observed in STEM education and the broader technology sector.
The study utilized a database of almost 2,800 participants from Crunchbase to analyze the gender diversity of founders and investors. The report notes that the funding split for Web3 businesses is even wider, with all-male founding teams raising almost four times more on average than all-female teams.
Furthermore, none of the Web3 firms that have raised more than $100 million have an all-female founding team. The gender gap extends to the overall workforce, with women occupying primarily non-technical roles such as HR and marketing. The study found that women make up approximately 27% of employees at leading Web3 startups, which is lower than the 33% in STEM fields overall, where 25% are in technical roles.
The lack of diversity is lack of adoption
These findings highlight the significant underrepresentation of women in the Web3 industry, a problem that has been overlooked in previous studies that focused on mixed-gender teams. The analysis shows that metrics, such as funding success rates, decline as the percentage of women involved decreases.
All-male teams have the most success in attaining funding, mixed teams with both men and women are in the middle, and all-female teams have the least success.
The gender imbalance in Web3 ecosystems has significant implications for online representation, business transactions, and interpersonal interactions. This lack of diversity may have a greater impact on early adoption of web3 business tools.
Brands and digital platforms that enter Web3 spaces designed primarily by white men and used primarily by white men will miss out on a significant business and monetization opportunity from the start.
To ensure that Web3 offerings are designed for diverse groups of users, it is important to involve people who understand the lived experiences of the target audience.
