Good morning, Broadsheet readers! Valentina (@valzarya) here, filling in for Kristen while she’s at SXSW. Yahoo’s new CEO will make twice as much as Marissa Mayer, Kellyanne Conway is back in the spotlight, and comfy heels are finally hitting the market. Stay warm this Tuesday!
• Underfunding female founders. Venture capitalists invested $58.2 billion in companies with all-male founders in 2016. Meanwhile, women received just $1.46 billion in VC money last year, according to data from M&A, private equity, and venture capital database PitchBook.
While it’s a well-documented fact that female founders receive less venture capital funding than their male counterparts, what is perhaps more surprising is that things haven’t improved—and have actually worsened—over the past year. That massive disparity is due both to the differences in the number of deals and the average deal size by gender:
Number of deals: When it comes to deal volume, women-led companies made up just 4.94% of all VC deals in 2016—the highest percentage in the past decade. It’s a paltry number, but a noticeable improvement from 10 years ago, when female founders were involved in just 2.95% of deals.
Size of deals: While the percentage of the deals that went to women increased last year, women actually lost ground when it comes to their share of total VC dollars. In 2016, women got just 2.19% of venture capital funding—a smaller piece of the pie than in every year this past decade, with the exception of 2008 and 2012. The average VC deal for women-led companies was $4.5 million in 2016—compared to $6.1 million in 2015 and $5.1 million in 2014. (The average investment for male founders was $10.9 million in 2016, $9.7 million in 2015 and $8.4 million in 2014.)
I talked to a few female founders and investors—The Muse’s Kathryn Minshew, Stitch Fix’s Katrina Lake, Aspect Ventures’ Jennifer Fonstad—about why women still aren’t getting their fair share of VC funding. Read what they had to say here:
ALSO IN THE HEADLINES
• What Mayer’s making. We all knew Marissa Mayer’s days were numbered, but now we have details on what’s happening next. The Yahoo CEO will be replaced by Thomas McInerney, previously CFO at media and Internet company IAC. Mayer’s exit will increase her net worth by about $189 million, thanks to a $23 million severance package, $69 million in unexercised stock options, and the $97 million of Yahoo stock she already owns. McInerney could be getting an even sweeter deal, however. He’ll have a base salary of $2 million (double what Mayer currently makes) and will be eligible for as much as $24 million in annual stock awards—twice as much as Mayer’s grant in 2015, the last full year before the Yahoo Verizon sale was announced.
• Thesis ready for testing. Thesis Couture, a startup that aims to make high heels women can actually walk in, announced yesterday that it is ready to bring its first product to market—but only for a few select customers. On March 22, the company will release 1,000 pairs of shoes for a 48-hour period. The startup’s founder Dolly Singh told Fortune exclusively that it has raised additional funding in a round that closed last year from Full Tilt Capital, Edgewater Equity, and Backstage Capital—bringing its total seed funding to $1.8 million across two rounds in 2015 and 2016.
• Another Wall Street fail. A new study released Monday shows that while female financial advisers are less likely than their male counterparts to engage in misconduct, they are punished far more harshly after complaints of wrongdoing. The report, which was—in all seriousness—titled “When Harry Fired Sally,” calls out Wells Fargo in particular: The bank’s female advisors were more than 25% more likely to experience a “job separation” after misconduct than their male counterparts.
• Racing backwards? Remember all that talk last year of a “paid leave arms race” that accompanied tech giants like Netflix’s unveiling of generous new HR benefits? Bloomberg‘s Rebecca Greenfield writes that it was just that—all talk—according to a new national study. From 2005 to 2016, the percentage of employers offering full pay to new parents dropped from 17% to 10%, while the average maximum time off given to new parents dipped from 15.2 weeks to 14.5 weeks.
• Latinas on top. The Association of Latino Professionals for America has a list of the 50 Most Powerful Latinas in corporate America. Topping the list is PG&E Corp.’s CEO Geisha Williams, who became the first Latina to lead a Fortune 500 company earlier this month. She has come a long way from the day she fled Cuba with her parents in 1967 at five years of age.
MOVERS AND SHAKERS: Donna Ogier, who oversaw media partnerships for Apple News until early this year, has joined Snap to work on Snapchat’s Discover section.
IN CASE YOU MISSED IT
• Conway’s (un)comments. Kellyanne Conway is in hot water again after claiming—and then reversing the claim—that President Obama’s administration is spying on President Trump through microwave ovens. “You can surveil someone through their phones, certainly through their television sets—any number of ways,” the presidential advisor said in a Sunday interview with the local New Jersey publication The Record, adding that there are “microwaves that turn into cameras,” and insisting that all of these tactics are “a fact of modern life.” She walked back her comments the next day in a CNN interview.
New York Times
• Ivanka gets less luxe. Ivanka Trump’s brand has discontinued its line of high-end bracelets, necklaces and rings, the company confirmed on Monday. Instead, it will focus on more affordable fashion jewelry. In a statement, the company’s president Abigail Klem attributed the decision to the company’s “commitment to offering solution-oriented products at accessible price points.”
New York Times
• Bailing on the BOE. Charlotte Hogg, who was appointed COO of the Bank of England in 2013 before being named deputy governor for markets and banking in February, quit on Monday after the U.K. parliament’s treasury committee said her failure to disclose that her brother worked in a senior role at Barclays represented “a serious error of judgment.” Meanwhile, American economist Kristin Forbes, one of just two women on the BOE’s Monetary Policy Committee (the members of which are in charge of setting rates) is leaving her post at the end of June to return to MIT. She is considered a top contender for future Federal Reserve posts; there will be three open seats on the Fed’s board as of next month.
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ON MY RADAR
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