For years, it seemed as though the traditional banking and fundraising system worked against certain groups. There are now thousands of people who have been able to finally achieve their goals through venture capitalism funding online. You may very well think that these internet entrepreneurs are truly bucking the traditional system. But are they? Here, we will explore just who is getting funded online through a study of around 165 successful startup teams.
This may (or may not) be a surprise to you when examining the racial makeup of successful online entrepreneurs. Overwhelmingly, the most successful startup teams are white. Only an estimated 1% of those people that make it are black. Why might this be? One could argue that internet users are a very diverse group and this just seems strange. However, others could say that technical prowess, along with internet and marketing know-how plays a huge role in who gets funded. Some may simply not have the training. Interestingly, 12% of those who founded startups were Asian, although they make up far less of the general population.
Age & Sex
You may expect that the age of those getting funded would be much younger than a traditional group. But studies show that about 50% of those funded online are between 35 and 44 years old. Again, those over 44 may simply not have the technical skills needed to start a startup. Those below 35 may not necessarily have access to the capital needed in the initial stages, despite being a tech natural generation. As for the sex of internet entrepreneurs, teams from both sides of the aisle do well. Only .08% of online entrepreneurs are women, except for in Massachusetts. That number is significantly larger.
Not surprisingly, almost all of these startup founders where college educated. Over 90% have either an undergraduate or a master’s degree in some field. Far fewer have PhDs (about 7%) while a very small portion (2%) have less than a bachelors. Lots of these startup founders were educated at what we might call top-tier institutions. This includes places like Stanford, Harvard, and MIT. In New York State, though, around 65% have master’s degrees. Those without any college degrees are also more likely to run start-ups there.