InnoVen Capital: Gender equality remains an issue in SEA with only 6% of female leadership in startups

In its latest Startup Outlook Report, InnoVen Capital reveals that today, only 25 per cent of surveyed startups in Southeast Asia (SEA) have women representing more than half of their employees. In comparison, only six per cent are predominantly led by women.

This proves that gender diversity remains a challenge in the region, according to Dawn Yeo, Associated Director of Governance Risk and Compliance at InnoVen Capital. She states that while this is seen in the overall workforce, the underrepresentation is more apparent in leadership positions.

“Another challenge that female-founded startups often struggle with, as compared to male founding teams, is raising funds. While there has been a positive shift in the funding landscape in recent years, the playing field is far from level for female entrepreneurs,” she tells e27.

“Underlying difficulties faced include inherent gender bias, exacerbated by male dominance in the venture capitalists and other investor groups. Traditional culture norms and societal expectations of the role of women and their responsibilities also play a part in the number of women stepping into entrepreneurship.”

InnoVen Capital Group is a venture debt platform and a joint venture between Seviora Holdings (a US$50 billion independent asset management group wholly owned by Temasek Holdings) and United Overseas Bank Group. Established in 2015, the group has a Pan-Asian presence with operations across India, China, and Southeast Asia.

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Their Startup Outlook Report was administered to founders and senior leaders and covers a broad cross-section of companies from early, growth, and late stages. It covers wide-ranging topics around the funding environment, exits, focus areas, challenges, and other aspects that are on the minds of founders. The survey was conducted with over 100 VC/PE-backed startup leaders during the second half of 2023 and the first quarter of 2024.

In this email interview, Yeo shares how cultural norms and societal expectations affect gender representation in the tech startup ecosystem and the kind of initiatives that can break barriers in the workplace.

What initiatives or support systems are in place to promote gender diversity in tech startups in SEA?

Government initiatives play a pivotal part in supporting female entrepreneurs in SEA. Support programmes aimed at promoting gender diversity and supporting women in tech include access to financing, training, talent development, mentorship schemes and networking opportunities.

In SEA, multiple gender-focused accelerators, such as the Women in Entrepreneurship Incubator and She Loves Tech, are committed to catalysing funding for women in technology. In addition to bigger-scale conferences and platforms, several communities of women in tech have sprung up in recent years to support and empower one another, including groups like Product Women and Women in VSEA.

How do cultural norms and societal expectations in SEA impact gender representation in the tech industry?

Traditionally, in SEA culture, the weight of childbearing and caregiving falls disproportionately on women, making it difficult for women to sustain longer-term participation in the workforce when obligations at home mean having to take time out from work.

There is also a common stereotype that women are more suited to administrative or support roles. These biases may trickle into hiring, promotions, and workplace culture, reinforcing the notion and inevitably feeding the cycle of limited representation of women in tech, especially in senior leadership positions.

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In addition, fewer women pursue STEM-related education and careers than their male counterparts, as society often perceives the tech industry as a male-dominated field.

How important are role models and mentorship for women in tech startups?

Having role models and mentors provides invaluable guidance for women in tech startups. Other women with industry experience can offer insights and advice on navigating challenges and opportunities unique to a male-dominated industry. These mentors also facilitate connections within the industry, opening doors to new opportunities that might otherwise have been closed to women entrepreneurs.

Within the workplace, women in senior leadership positions are empowered to advocate for gender diversity and inclusivity, creating a more supportive environment for other women and counterbalancing gender biases.

What changes are necessary to improve gender representation in the SEA tech startup ecosystem over the next five to ten years? What advice would you give to existing stakeholders in the industry?

Fostering change in gender representation in the SEA tech startup ecosystem requires a concerted effort from multiple stakeholders, including governments, educational institutions, industry associations and tech companies. Apart from weaving technology into the education system, there must be an improvement in overall female access to and participation in the system.

Governments should lend continued support to women in tech through grants and policies, including those which promote anti-discrimination and diversity and support working parents. Workplace culture should continue to shift from focusing on facetime in the office to output-driven hybrid work arrangements, which affords women and working mothers the flexibility needed to balance commitments at home and obligations at work.

These policies should extend beyond just women and working mothers to encompass family-focused policies, similarly enabling male employees to share the burden of responsibility at home.

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Image Credit: Innoven Capital

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